MELBOURNE HAILSTORM MAKES MASSIVE DENT IN SUNCORP COSTS

THE December 2017 storms in Melbourne have made a significant dent in costs for insurance provider Suncorp (ASX: SUN) and is expected to impact its FY18 results.

Following the 19 December 2017 hailstorm in Melbourne, Suncorp is estimating net costs covering damage in the Victorian capital of between $160 million and $170 million.

Suncorp currently expects to receive more than 21,000 claims across its insurance brands, which include AAMI, GIO, Suncorp, Apia, Shannons and Bingle.

The majority of the claims relate to home and motor vehicle damage.

The Melbourne storm is the most severe natural hazard event for the first half of FY18, far exceeding any event by over $100 million.

The second most expensive event for the first half was the Newcastle and Toowoomba hailstorm in October of 2017 with net costs reaching $37 million to cover damage occurring there. Read more

David Simmons – Business News Australia – 8 Jan 2018