Sharechat Logo

Suncorp's outstanding Canterbury quake claims costs rise, expects $50M of Kaikoura claims

Monday 23rd January 2017

Text too small?

Suncorp Group, which owns general insurer Vero in New Zealand, has increased its outstanding claims provision for the 2010 and 2011 Canterbury earthquakes after getting new claims from the Earthquake Commission. Separately the insurer released a claims estimate from last November's temblor in Kaikoura.

Brisbane-based Suncorp lifted its provisioning for outstanding Canterbury quake claims by $112 million, most of which will be covered by the insurer's reinsurance programme, leaving it a net cost of $18 million, it said in a statement. The increase was "primarily due to the notification of new 'over-cap' claims from the New Zealand Earthquake Commission", it said, referring to those claims that exceed the EQC's $100,000 cap. 

Last year Vero increased its assessment for the likely cost of the Canterbury quakes by $123 million. A number of insurers have had to upgrade their expectations for the cost of the Canterbury quakes, with more complex claims taking longer to settle, while at the same time repair and rebuild costs increase. 

Separately, Suncorp said it anticipated a net impact of $50 million from the November earthquake near Kaikoura. At the time, Suncorp's Vero arm said it had received more than 1,000 claims relating to the 7.8 magnitude quake, though it couldn't tell whether premiums, which were already rising due to increased motor vehicle claims and higher building costs affecting houses, would get pushed up further. 

The ASX-listed shares fell 0.9 percent to A$13.225. 

BusinessDesk.co.nz

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: NZ shares gain as A2 calms critics with strong sales
NZ dollar may extend rally on signs of gradual Fed rate increases
Larry Ellison's NZ yacht company key to America's Cup rival
Port of Tauranga eyes record $101mln 2019 profit on cargo growth
Marsden Maritime eyes benefits from upper North Island transport study
NZ screen sector needs special employment carve-outs to stay competitive
A2 shares climb 7.7% as Chinese formula sales grow
NZ software firm SwipedOn sells for $11 million
AWF Madison drops 3.7% as failed construction firms dent earnings
Genesis partners with Tilt in Taranaki wind farm

IRG See IRG research reports