Credit Suisse has downgraded the earnings forecasts for the two largest insurers in Queensland.
Suncorp Group Ltd (ASX:SUN) and Insurance Australia Group Ltd (ASX:IAG) have been adjusted because of increasing reinsurance costs.
Full year earnings forecasts for IAG have been downgraded by 3 – 4 per cent, while full year earnings for Suncorp have dropped 11 percent.
On Wednesday Suncorp said it may incur additional reinsurance costs of around $120 million. Suncorp has the biggest exposure to Queensland’s floods.
