Insurance Australia Group (ASX:IAG) says the scale of anticipated claims due to storms in Sydney yesterday already indicate they will be in line with their maximum first event retention of $169 million post-quota share.
By 10am on 21 December 2018 IAG had received more than 6,500 claims resulting from the Sydney hailstorm, and this is expected to rise significantly over coming days – mainly motor and property damage.
IAG is setting up specialist hail repair units across Sydney to help assess and repair hail-damaged vehicles.
The cost of any subsequent event in the period up to 31 December 2018 will be capped at $17 million pre-tax (post-quota share), after allowing for protection provided by the aggregate cover.
Total protection available under the 2018 aggregate cover amounts to $321 million, post-quota share.
Shares in Insurance Australia Group (ASX:IAG) last traded at $6.95