By Alice Uribe
SYDNEY--Insurance Australia Group Ltd. has raised its expectation for fiscal 2022 net natural perils claims costs to around 1.1 billion Australian dollars (US$800 million) after severe storms and widespread flooding in southeast Queensland and New South Wales.
The Australian general insurer lifted its net natural perils claims costs estimate from a previous estimate of A$1.045 billion.
"Our communities continue to battle through this extraordinary sequence of weather events and it is distressing to see people suffer through multiple storms and floods up and down the east coast," said Chief Executive Nick Hawkins in a regulatory filing.
IAG reaffirmed its fiscal 2022 reported margin guidance range of 10%-12%. But following the increase in estimated net natural perils claims costs, a result in the lower half of the guidance range is now more likely, said the insurer.
"IAG also acknowledges there are a range of factors impacting the external environment at this time including equity market volatility in recent months," it said.
As of 0600 AEDT on March 9, IAG said had received approximately 24,000 claims across its brands for the floods and storms, and that this number is expected to rise further over the coming days.
IAG said it has "extensive reinsurance protection in place," estimating it will incur a net claims cost of approximately A$74 million from the storm and flooding event that began in February. This is lower than the A$95 million estimate disclosed on March 1.
Write to Alice Uribe at email@example.com
(END) Dow Jones Newswires
March 08, 2022 18:09 ET (23:09 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.