Suncorp shares slide as Tropical Cyclone Alfred approaches
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The news: Suncorp shares lowered as the insurer sought to reassure investors after Tropical Cyclone Alfred was upgraded overnight.
The numbers: Suncorp shares were down 1.5% to $19.36 at 2:30pm AEDT, having dropped around 6.5% over the last week.
Fellow insurers QBE (-1.7%) and Insurance Australia Group (-1.2%) were also trading lower.
The context: The Bureau of Meteorology upgraded Tropical Cyclone Alfred to a category-2 cyclone overnight and said it likely to make landfall between the Sunshine Coast and Brisbane later this week.
Suncorp said the government's cyclone reinsurance pool provides cover for damage when a storm is classified as a cyclone and for an additional 48 hours after it is downgraded.
The company noted also noted it has a "comprehensive reinsurance program" in place to protect it against large weather events of up to $350 million, while its main catastrophe cover provides protection up to $6.75 billion.
What they said: "Given this system is likely to affect a large geographical area, we are preparing our response and claims teams to assist impacted customers," said Suncorp CEO Steve Johnston.
"Any customers affected by this event are reminded they can lodge their claims through our digital channels as soon as it is safe to do so."
The source: ASX
