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 fall as MSCI changes debated, Mercury falls, Fletcher gains
NZ dollar heads for 1.6% weekly fall as greenback finds favour on rate hike view
FMA keeping close tabs on Australian Royal Commission as AMP chief Meller departs
NZ's R&D tax incentive plan viewed as positive by business
SkyCity wants at least A$200M for Darwin casino; private consortium most likely buyer: report
Syft sales jump more than 50%, profit growth misses target on production costs
Fletcher shares gain after shortfall bookbuild cleared at premium to offer price
T&G Global to sell Kerikeri assets to Seeka in deal worth about $40m
USX: Syft Technologies update to shareholders
NZX first-quarter revenue edges up with busier secondary market

IRG See IRG research reports