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Member, Beacon International Group, Ltd.
SYDNEY (Reuters)—Australian insurer and bank Suncorp Group said on Friday its natural hazard costs for the six months to December were expected to be well ahead of its allowance after a damaging hailstorm in Melbourne, Australia, sending its shares down over 3%.
Suncorp, which along with fellow Australian insurers is emerging from record flood, storm and earthquake claims in 2011, said a hailstorm in Melbourne on Christmas Day was expected to cost between $200 million Australian and $250 million Australian ($204.2 million and $255.2 million).
The group, which reports half-year financial results on Feb. 22, said in a statement that natural hazard costs for the six months to December were expected at $360 million Australian to $420 million Australian ($367.5 million to $428.7 million), compared with a $240 million Australian ($245.0 million) allowance for the period.
"The Melbourne hailstorm on 25th December 2011 caused widespread damage across residential areas in the city's northern suburbs," Suncorp said in a statement.
Suncorp shares fell as much as 3.6% and ended down 3.2% to record the sharpest fall in a month as investors feared high natural hazard costs would cut profit expectations.