Suncorp says it is well-protected against impact of Cyclone Debbie

In a statement to the market, Suncorp confirmed its remaining reinsurance protection program would be enough to guard against the financial hit from the storm as thousands of Queenslanders are forced to evacuate their homes. The insurer said, “Suncorp’s reinsurance protection program means it is well protected against the financial impact of Cyclone Debbie. Claims costs from the cyclone are expected to be fully covered by a combination of Suncorp’s main catastrophe program and the additional natural hazard aggregate protection that was purchased for the 2017 financial year.” Suncorp’s main catastrophe program delivers cover from A$250 million to A$6.9 billion. Meanwhile, its earlier purchase of additional natural hazard aggregate protection cover offers an extra A$300m as soon as natural hazard events larger than A$5m top a level of A$460m for the year. The insurer has recently hit the A$460m mark, meaning Cyclone Debbie will require it to begin tapping into the additional cover. Suncorp said it was “well prepared” for the event, with teams ready to be sent out to assess damage and a stronger call centre team to manage a likely uptick in claim calls. Suncorp also announced it is seeking to raise A$250 million through a capital notes offer.