Hailstorm will hit Suncorp hard

SUNCORP has flagged a cost hit of $160 million to $170 million in its first-half results following a flood of insurance claims relating to the hailstorm in Melbourne last month.

The insurance heavyweight expects to receive more than 21,000 claims from the hailstorm – mainly in relation to home and motor vehicle damage – across its insurance brands including AAMI, GIO, Suncorp, Apia, Shannons and Bingle.

Suncorp said yesterday that its total natural hazard claim costs in Australia and New Zealand for the six months to December 31 were estimated to be between $406 million and $416 million.

That is $60 million to $70 million above its natural hazard allowance – effectively the cost it had budgeted for – during the half.

The Insurance Council of Australia last month declared the storm a “catastrophe” and, soon after, said there had been more than 25,000 insurance claims totalling $105 million.

About 100,000 Victorian properties were without power as wild wind gusts reaching up to 117km/h felled trees and powerlines during the storm, less than a week before Christmas.

Suncorp yesterday said it was well protected against further natural hazard events and had a program in place for the year to June.

Managing director Michael Cameron said responding to customers was the priority.