Insurers slide as Tropical Cyclone Alfred nears Queensland
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The news: Australian insurers extended their declines from Tuesday, with Tropical Cyclone Alfred expected to make landfall between Brisbane and the Sunshine Coast later this week.
The numbers: QBE (-2.6%) and Suncorp (-1.9%) were trading lower by midday AEDT, having both ended the previous session 2% lower.
Insurance Australia Group (IAG) edged down 0.1% having ended 1.7% lower on Tuesday.
The context: The cyclone is expected to cause strong winds, intense rainfall, potential flooding and large swells across south east Queensland and northern New South Wales.
In an ASX release this morning, IAG noted the federal government’s cyclone reinsurance pool, which provides protection for damage caused by cyclonic wind and any cyclone-related water damage occurring up to 48 hours after the system is downgraded by the Bureau of Meteorology.
IAG also has a quota share reinsurance program covering 32.5% of all losses, as well as catastrophe cover for 67.5% of all losses between $500 million and $10 billion.
Suncorp made a similar statement on Tuesday.
The source: ASX
