Suncorp reiterates FY26 natural disaster allowance amid cyclone, bushfires damages
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The news: Insurance group Suncorp reiterated its FY26 natural hazards allowance of $1.77 billion as it responded to damages caused by Ex-Tropical Cyclone Koji and bushfires in Victoria, with the expected total cost of natural hazard events for the first half of FY26 forecast at $1.319 billion.
The insurer said its main catastrophe cover remains in place for FY26, although the retention for the next large Australian event has been reduced to $260 million, based on current estimates.
The context: The update comes as Suncorp outlined the initial impacts of Ex-Tropical Cyclone Koji and bushfires in Victoria, ahead of the release of its 1H26 natural hazards experience and investment income results on 18 February.
The insurer has so far received around 80 home and motor insurance claims from Ex-Tropical Cyclone Koji and around 60 home and motor claims from bushfires in Victoria.
Suncorp said elevated natural hazard experience is expected to result in a claims risk adjustment around $35 million higher than in the first half of FY25, but this will not affect the underlying margin.
However, Suncorp CEO Steve Johnston said the impacts from Ex-Tropical Cyclone Koji and the Victorian bushfires have not yet resulted in material claims activity, though the insurer said it will continue to closely monitor bushfire risks in Victoria and flooding risks in Queensland.
Johnson also said that while the series of major weather events is expected to affect reported profits and shareholder returns, they reinforced the value of insurance and Suncorp's role in supporting customers and rebuilding communities.
The source: ASX
