By Alice Uribe
SYDNEY--The value of Australian general insurance companies stock fell in Monday trade in the wake of heavy rainfall and flooding across south-east Queensland and northern New South Wales.
Shares in Suncorp Group Ltd. slid 3.5% to $10.74 Australian dollars (US$7.77) while Insurance Australia Group Ltd. dropped 4.2% to A$4.59.
Queensland-based Suncorp said in a regulatory filing Monday that it had received more than 5,000 claims across NSW and Queensland as of Feb. 28. Of the claims received to date, around 70% are in south-east Queensland and around 30% in NSW. More than 80% of claims relate to home damage.
Suncorp said it is "carefully" monitoring the situation and has comprehensive reinsurance arrangements in place, including the main catastrophe program, dropdown aggregate protections and aggregate excess of loss treaty, all with full limits available.
Suncorp said it also has quota share arrangements in place for its Queensland home insurance portfolio.
"Accordingly, the maximum retained cost for Suncorp from this event is expected to be approximately A$75 million, which largely reflects the remaining deductible to trigger reinsurance recoveries under its AXL treaty. The full-year outlook for natural hazard costs remains around A$1.075 billion," said Suncorp.
IAG hasn't issued a regulatory filing on the flooding.
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(END) Dow Jones Newswires
February 27, 2022 19:50 ET (00:50 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.