SUNCORP BLOWS NATURAL DISASTERS BUDGET BY $40 MILLION
Written on the 25 January 2017 by Lin Evlin
Suncorp Bank (ASX: SUN) has announced that its natural disasters claims costs have blown out by $40 million from its half year budgeted allowance just weeks before it is scheduled to release its 2017 interim results.
The Bank's natural hazard allowance for Australia and New Zealand for the six months to 31 December 2016 was $310 million but Suncorp told the market on Monday that total claims for that period will be around $350 million.
The claims include $NZ50 million flowing from the Kaikoura earthquake on 14 November 2016, $60 million for South Australian/Victorian storms in November 2016 and $50 million for Victorian/South Australian storms in December 2016.
Suncorp has exceeded its natural hazards allowance at every interim result since 2013.
In other news, the Bank also announced that it has finalised the sale of its New Zealand Autosure motor insurance business to Turners Limited.
The sale results in a release of $30 million in capital and a post-tax loss of $25 million on disposal.
The completion of the sale will be booked in the Bank's 2017 half year results as a non-cash item. It will also be accretive to its New Zealand business.
Suncorp's share price dipped by 43 cents from $13.35 to $12.92 on Monday. The share price at 11 am AEST is $13.01.
Business News Australia