Suncorp counts cost of storm damage

Suncorp says it’s looking at taking a $60m-$80m hit from the recent east coast storms, with 8,000 claims already lodged.

Insurance and financial services group Suncorp has predicted a financial impact of between $60 million and $80m from the recent severe storms on the east coast of Australia.

The update falls exactly in line with the provisions made by rival insurer IAG last week, although Suncorp’s receipt of 8,000 claims comes in below the 10,000 received by IAG.

The group added that its allowance for such events of $670m for the financial year would not be breached thanks to the potential $80m in claim payouts.

“After taking into account the impact of the east coast storms, Suncorp expects total natural hazard costs for the year to date to be broadly in line with the annual allowance,” the group said in a statement.

Suncorp shares underperformed the ASX 200 last week owing to the impact of the storms and they have continued to trend lower this week in line with a broader market slump.

The group’s shares most recently traded at $12, down 6 per cent from where they stood prior to the storms.