IAG to pay out $180 million for Cyclone Oswald damage
Insurance Australia Group Ltd says it expects claims of up to AU$175 million ($180 million) from the floods and fires that have swept through the country this year.
The insurer reported that it had received 13 700 claims, expected to cost between AU$120 million ($123.4 million) and AU$140 million ($144 million) from customers affected by ex-Tropical Cyclone Oswald, the deadly storm which ravaged the country’s east coast last month. IAG has also received about 600 claims for around AU$35 million ($36 million) from bushfires in the southern states. Deutsche Bank insurance analyst, Kieren Chidgey, says that IAG’s catastrophe costs for the second half of fiscal 2013 had reached about $155 million to $175 million, which was roughly half of the group’s second-half allowance of $320 million. UBS insurance analyst James Coghill believes IAG’s $640 million full-year allowance for the 2013 financial year “remains adequate”.
Rival insurer Suncorp received around 23 000 claims from Oswald. Suncorp says its 30 per cent quota share arrangement on the Queensland home insurance portfolio would help limit the net claims costs to between AU$200 million ($205.7 million) and AU$220 million ($226 million).