Suncorp Group, the Australian and New Zealand general insurer, has exceeded its catastrophe loss budget in the second-half of 2016, repeating a trend that has dogged the insurer since 2013.
The insurer reports a number of major claims in H2 2016, including the Kaikoura, New Zealand earthquake which it has set a loss of NZ $50 million for, November’s southern Australia sever storms which it believes to have cost it $60 million and December’s storms in the same region which added another $50 million to the total.
Every interim report has seen catastrophe and severe weather losses hit Suncorp, resulting in the company exceeding its catastrophe budget repeatedly since 2013. Each year the company has needed additional support from its reinsurance panel and this seems likely again.
For the six months to 31st December 2016 Suncorp said that it has exceeded the catastrophe claims budget of $310 million by $40 million, so an estimated claims total of $350 million.
Separately, the company has reported further deterioration of its Canterbury earthquake claims, adding NZ$112 million to its estimate for the 2010/11 New Zealand quakes.
Suncorp said that it expects to retain just $18 million of this, with the remainder falling to its reinsurance cover to pay.
