Suncorp may take $250m hit from Brisbane storm claims

INSURER Suncorp says it is facing a $250 million claims liability for damages from last week’s storms that hit Brisbane.

Suncorp chief executive Patrick Snowball. Picture: Jack Tran

THE heavy storms that battered Brisbane last week will take their toll on insurer Suncorp, which says it expects to reach its maximum $250 million claims liability for damages.

The total claims from the freak storm will eat up almost half of Suncorp’s total $595m in ­provisions for natural hazards set aside for the 2015 financial year.

In a statement to the market, Suncorp said it had already received about 24,500 home, motor and commercial claims following last Thursday’s Brisbane storms.

It said the majority of claims related to damaged motor vehicles insured under the group’s insurance brands that include Suncorp, AAMI, Apia and Vero.

Because of a comprehensive reinsurance program, and a 30 per cent proportional quota share arrangement covering the Queensland home portfolio, ­Suncorp said the financial impact of natural hazard events were limited to a maximum of $250m.

“The number of claims is ­expected to increase and although it is too early to accurately estimate the final claims cost for the event, Suncorp expects it to reach the maximum financial impact of $250m,” the company said.

“Suncorp makes provisions for natural hazards and has an allowance of $595m for events in the 2015 financial year.”

Suncorp chief executive Patrick Snowball said Suncorp was now assessing about 100 home claims a day across Brisbane and up to 1200 vehicles at its mass assessment centre.

“While it will take some time to finish all repairs, Suncorp will rely on its broad network of repairers, builders and material suppliers to fix the damage as quickly as possible,” Mr Snowball said.