Suncorp dumps Warren Buffett insurance-protection deal

Liam WalshReporter

Jul 5, 2024 – 12.45pm

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Key Points

Suncorp has dumped a layer of reinsurance protection with Berkshire Hathaway.
Says better risk selection and federal cyclone program have replaced the deal.
Suncorp expects margins to be within guidance.

Suncorp has dumped a deal with Warren Buffett’s Berkshire Hathaway that split the risks and rewards of the Australian insurer’s exposure to wild weather in Queensland.

The move was detailed on Friday as Brisbane-headquartered Suncorp, whose brands include AAMI and GIO, also said major natural disasters had a smaller impact than it had expected. However, the cost of some older claims had jumped.

Liam Walsh writes on investigations and companies with The Australian Financial Review. He has won multiple media awards, worked in Japan and is now based in Brisbane.