Australian insurer Suncorp has disclosed that its total cost of natural hazard events for the first half of 2026 (H1’26) is expected to be AU$1.319 billion, far above the budget of AU$866 million, eroding most of its full-year 2026 (FY’26) allowance of AU$1.77 billion, meaning the carrier will make reinsurance recoveries.
As we wrote back in November 2025, large hail and destructive winds that hit South East Queensland and northern New South Wales were expected to hit Suncorp’s full reinsurance retention of AU$350 million under its main catastrophe cover. Recent data from Suncorp shows that of the H1’26 events to impact the firm, this event is the only one to hit the AU$350 million retention.
The insurer’s main catastrophe cover remains in place for FY’26, but the retention for the next large Australian event is reduced to AU$260 million, based on current estimates, explains the company.
In H1’26, there were nine separate events above AU$10 million for the firm. This includes the Eastern States Coastal Low at AU$17 million, Fraser Coast Hail at AU$59 million, NSW and QLD Hail and Storms at AU$25 million, Eastern States Severe Thunderstorms with AU$240 million in losses, NZ Storm Wind and Rain adding AU$34 million, S-E QLD Spring Storms and Hail with AU$128 million, Eastern Australia storms at AU$26 million, the aforementioned S-E QLD Hail at AU$350 million, and S-E Aus Wind and Storms at AU$38 million.
Steve Johnston, Chief Executive Officer, Suncorp, said that while the series of major weather events will impact reported profits and shareholder returns for the half year, they reinforced the value of insurance and the role Suncorp plays in supporting customers and rebuilding communities.
He continued, “The hailstorms that hit parts of the east coast of Australia, particularly south-east Queensland in October and November, were particularly destructive, with more than 37,000 home, motor and commercial insurance claims being received.
“Our rapid response through our Disaster Management Centre and support provided through the deployment of our mobile disaster response hubs has accelerated the pace at which we can get our customers back on their feet. Our pop-up motor assessment centre assessed more than 4,000 vehicles over the course of two weeks, speeding up the repair process.”
Additionally, as of January 11th, 2026, Suncorp had received around 80 home and motor insurance claims from Ex-Tropical Cyclone Koji; of these, the federal Government’s Cyclone Reinsurance Pool provides cover for home and small business claims for damage that occurs up to 10 am AEST on January 13th, 2026. The insurer had also received around 60 home and motor claims from bushfires in Victoria.
The elevated natural hazard experience is expected to contribute to a claims risk adjustment charge that is approximately AU$35 million higher than in the results of H1’25.
Johnston added, “We ask everyone to continue to put safety first, remain alert and listen to warnings and advice. Stay away from impacted areas – particularly if there has been flooding or where active bushfire alerts remain. Our thoughts are with the communities impacted, including Longwood in Victoria, where there was a tragic loss of life,” Mr Johnston said.
He continued, “We encourage impacted customers to lodge their claims online as soon as possible. So far, this has not resulted in material claims activity, but we are conscious that the weather system continues to impact communities along the Queensland coast with strong winds, heavy rainfall and flash flooding. With the establishment of a regional office in Townsville, we are well placed to support our central and north Queensland customers.
“Bushfire risk remains high across southern Australia, particularly Victoria, and we are closely monitoring from our Disaster Management Centre in Brisbane. We are utilising satellite imagery to evaluate the damage ahead of our teams being able to be safely on the ground.”
