The bushfire emergency has caused Suncorp to exceed its natural hazard allowance by more than $100 million.
Total natural hazard costs in the six months to 31 December 2019 were $519 million – $109 million above Suncorp’s half-year natural hazard allowance.
That makes it the second insurance provider to exceed its natural hazard allowance, alongside IAG.
“Suncorp has significantly increased its reinsurance protection in FY20, providing strong additional cover to limit the impact of further natural hazard costs for the remainder of FY20,” said Suncorp CEO Steve Johnston.
“This is important, given the severe threat of the bushfires is ongoing.”
Suncorp has so far received more than 2,600 bushfire-related claims with a total cost between $315 million and $345 million.
“Having visited some of the communities affected by these fires, it is difficult to describe the extent and indiscriminate nature of the damage that has been caused and how deeply traumatic and dangerous they have been for families, communities and emergency services personnel,” said Mr Johnston.
“We fully recognise that these bushfires are particularly significant in terms of their duration, the geographic breadth of the fire zones, the sheer destruction of property, and the associated impacts on people’s lives, as well as local communities and economies.”
Suncorp has so far donated $500,000 to the relief effort and continues to double match employee donations, with over $90,000 contributed to bushfire relief agencies.