Suncorp impacted by Melbourne hailstorm

Company News

by Kathy Skantzos

Financial services company Suncorp (ASX:SUN) expects its insurance brands to be impacted with $160-170 million worth of claims following a hailstorm in Melbourne in December.

The company expects to receive more than 21,000 claims for mostly home and motor vehicle damage across its insurance brands including AAMI, GIO, Suncorp, Apia, Shannons and Bingle.

Suncorp’s total hazard claim costs for the six months to 31 December 2017 is currently estimated to be in the range of $406-416 million, which is $60-$70 million more than the allowance for the half year.

The company said it is currently assessing about 600 cars a day at its hail assessment centre in Melbourne.

Suncorp said it remains protected against further natural hazard events with its Natural Hazard Aggregate Protection in place for the 2018 financial year, providing $300 million of cover, in addition to its main catastrophe program.

Shares in Suncorp (ASX:SUN) are trading 0.9 per cent lower to $13.75.

Kathy Skantzos

Finance News Network
Kathy presents the Market Outlook and ASX company news. She joined FNN in September 2017. She has been in print and online journalism for over 9 years. She also worked in corporate communications.