Will wild Victorian weather take a toll on the Suncorp share price?

Summary

  • Suncorp Group (ASX:SUN) said it might face losses amounting to AU$50 million on account of claims filed in the wake of severe weather in Victoria over the weekend.
  • The insurer said that it had so far received nearly 3,750 claims predominantly for property damage.
  • The Group’s full-year natural hazard allowance was AU$950 million.

Suncorp Group Ltd (ASX:SUN) on Tuesday said that it might face losses to the tune of AU$50 million on account of claims filed in the wake of wild weekend weather in Victoria.  In an update on the recent severe weather affecting regions across metropolitan and regional Victoria, the Australian finance, insurance, and banking corporation said it had received nearly 3,750 claims predominantly for property damage.

Suncorp further said that the claims may surge in the coming weeks as the full extent of damage caused by the heavy rain, severe winds, and flash flooding is still unfolding.

Source: © Miflippo  | Megapixl.com

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Suncorp’s total natural hazard costs across Australia and New Zealand year to date to 31 May 2021 stood at AU$955 million, nearly AU$40 million above the year-to-date allowance of AU$915 million. These estimates exclude any associated risk margin or claims handling expenses. The Group’s full-year natural hazard allowance was AU$950 million.

What company says

Commenting on the update, Suncorp Group’s CEO Steve Johnston said that the company’s customer support teams are on the ground in Traralgon, providing face-to-face support to all the affected customers including AAMI, Apia and GIO. Suncorp has scaled up its flexible claims team to manage the increase in claims and calls from customers, Johnston added.

As safety should remain the number one priority, Suncorp has encouraged customers to lodge their claims online or via phone as soon as it is safe to do so.

READ MORE: Australia needs to react to climate change- here’s why.

Source: © Herrbullermann  | Megapixl.com

Stock exchange

On 11 June 2021, the stock closed 0.62% lower, at AU$11.22, compared to the previous closing on 10 June 2021. Suncorp competes with AUB Group Ltd (ASX:AUB), Janus Henderson Group plc (ASX: JHG), Netwealth Group Ltd (ASX:NWL), Hub24 Ltd (ASX:HUB), Commonwealth Bank of Australia (ASX:CBA), and National Australia Bank (ASX:NAB) in the financial sector.

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