IAG

Australia's Suncorp flags $178 mln upper-limit cost from Sydney hailstorm

An image of a quarterly report on a screen Credit: Shutterstock photo

Dec 21 (Reuters) - Australian insurer Suncorp Group Ltd said on Friday a Sydney hailstorm on Thursday could cost the company a maximum A$250 million ($177.83 million), but it was too early to estimate the number of claims it could receive.

Suncorp had received about 7,800 claims by Friday noon, the company said in a statement, adding that its reinsurance programme for the year would limit the financial impact.

Extensive hail and water damage across Sydney and the Central Coast prompted the Insurance Council of Australia to declare a catastrophe. It estimated that losses by Friday noon were more than A$125 million and were expected to rise.

Earlier in the day, Insurance Australia Group said it had received more than 6,500 claims due to the storm and flagged an estimated A$169 million in costs.

Shares of Suncorp fell as much as 5.7 percent to a more than one-year low, amid weakness in the broader market.

($1 = 1.4059 Australian dollars)


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.