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Suncorp Group (ASX:SUN) over 2600 bushfire claims since September

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ASX:SUN      MCAP $20.67B
10 January 2020 04:00 (AEST)

Suncorp Group (SUN) has so far received over 2600 bushfire-related claims in Australia since September last year.

The total estimated cost of these claims equates to between $315 and $345 million dollars. From January 1 – 5 alone, costs are estimated to be between $75 and $105 million.

The group’s immediate focus is on providing support to customers in need of urgent assistance. Suncorp support teams have been deployed to bushfire affected areas since September, with more likely to be sent out.

This weekend, Suncorp anticipates it will deploy teams to Ulladulla and Batemans Bay in News South Wales and Bairnsdale in Victoria.

Affected Suncorp customers can also access temporary accommodation, emergency funds and financial assistance.

Suncorp CEO Steve Johnston said the group is committed to helping to rebuild customers’ lives.

“We fully recognise that these bushfires are particularly significant in terms of their duration; the geographic breadth of the fire zones; the sheer destruction of property; and the associated impacts on people’s lives, as well as local communities and economies.”

“This recovery is going to take a long time – as one of Australia’s largest insurers we understand the role we need to play in that process. We are committed to continuing to do everything possible to help people and communities get back on their feet.”

Other insurance companies have also reported high numbers of claims since September. On January 3, Insurance Group Australia said it had received almost 3000 claims.

Natural Hazard Update

In addition to news on bushfire-related claims, Suncorp has provided a Natural Hazard Update.

In the second half of the 2019 calendar year, Suncorp recorded seven natural hazard events greater than $10 million. These bushfire, hail and storm events had $159 million of attribution claims.

The total natural hazard costs for this six-month period were $519 million.

In the 2020 financial year, Suncorp will enhance the hazard protection available explained Mr Johnston.

“Suncorp has significantly increased its reinsurance protection in FY20 providing strong additional cover to limit the impact of further natural hazard costs for the remainder of FY20. This is important given the severe threat of bushfires is ongoing.”

Suncorp Group shares closed 1.37 per cent higher, priced at $13.19 each.

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