In a new market update, Australian insurer Suncorp has disclosed that it incurred natural hazard costs of AUD 1.115 billion in the 10 months to April 30th, 2025, which has eroded almost 72% of the carrier’s AUD 1.560 billion full year natural hazard allowance.
Suncorp explained that there have been 15 separate events above AUD 10 million in the 10 months to April 30th, 2025, which combined with other attritional natural costs, has eroded more than two thirds of its allowance for the year.
While just AUD 445 million of Suncorp’s natural hazard allowance remains with two months until it resets, the insurer has confirmed that the full limits remain in place for all of its reinsurance covers.
Of the 15 events above $10 million, Suncorp reveals that the January Storms and Hail caused insured damages of AUD 92 million, Ex-Tropical Cyclone Alfred added AUD 85 million, while Tropical Low North East QLD added AUD 72 million. These three were the highest in insured damages for the firm in the period, while the lowest were VIC and WA Hail and Storms and NZ ex-Tropical Cyclone Tam, contributing AUD 14 million each.
It should be noted that Suncorp’s event response capabilities were effectively demonstrated in the lead up to and during ex-Tropical Cyclone Alfred in early March, with over 31,000 claims lodged, making it one of the largest in company history.
The net retained cost for the event, as mentioned above, is currently estimated at AUD 85 million, with recoveries from the Federal Government’s Cyclone Reinsurance Pool and other reinsurance arrangements offsetting gross costs.
Steve Johnston, Chief Executive Officer, Suncorp, commented, “Suncorp continues to invest in improving its capabilities to support customers as quickly and effectively as possible, including through the investment in its Disaster Management Centre (DMC). The DMC strengthens our capacity to proactively communicate and rapidly deploy our specialist customer support teams, builders and assessors with speed and urgency when disasters strike, while our fleet of Mobile Disaster Response Hubs can scale up on-the-ground support.”
The insurer also stated that its capital position remains robust with significant excess capital above its targets. Johnston added, “At the half-year results in February, we flagged that the Board would consider the potential for capital management initiatives in Q4 2025. Given the recent market turmoil and volatility, we feel it prudent to defer consideration of capital management until the full year results in August.”
Alongside this update, the insurer has also announced the appointment of Matt Leslie as Company Secretary, effective June 1st, 2025, replacing Darren Solomon, who will retire from the role.
Johnston said, “Matt has held various leadership positions across Suncorp, and is well equipped for the role. On behalf of everyone at Suncorp I want to thank Darren for his significant contribution and dedication over the last 36 years.”
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