Reinsurance will cover bushfire cost: Suncorp
With several serious fires still burning on Thursday, chief executive Patrick Snowball said it was too early to put a precise figure on the company's exposure to the blazes.
"We're focusing our attention entirely on the needs of our customers that are being caught up in this tragic event," he said at the company's annual meeting in Brisbane.
He said Suncorp would have a clearer idea of the claims it had received by the middle of next week but the cost was easily within reinsurance agreements in place with other underwriters. So far, there have been 1000 claims from the NSW bushfires, with estimated insurance losses of $130 million, the Insurance Council of Australia said.
IAG, which owns the NRMA brand, is thought to be the most exposed to the disaster but analysts say claims from the event are unlikely to dent its earnings. Suncorp, the company behind AAMI and GIO, is next most exposed.
Mr Snowball's comments came after chairman Ziggy Switkowski responded to shareholder concerns that his decision to become chairman and chief executive of NBN Co would interfere with his role at the financial services conglomerate.
Mr Switkowski this month took the rare step of agreeing to run the NBN Co as chief executive, as well as chairing the company, until a permanent replacement for former boss Mike Quigley is found.
"In taking on this new post, I recognise that for an interim period this will involve executive responsibilities and inevitably some new challenges and workload," he said.
To make sure he could manage the extra workload of running Australia's biggest infrastructure project, he said he had taken a leave of absence from the board of Oil Search and resigned from Opera Australia and Lynas Corporation.
"I want to assure you I have the enthusiasm and capacity to carry out my duties for the Suncorp Group while taking on the demands of the national broadband network," he said. Finding a permanent boss for NBN Co was a "priority".
Frequently Asked Questions about this Article…
Suncorp has stated that the claims from the NSW bushfires are unlikely to severely impact its profits, as the costs are covered by their reinsurance agreements.
Reinsurance is a way for insurance companies like Suncorp to protect themselves from large claims by sharing the risk with other underwriters. This helps Suncorp manage costs during disasters like the NSW bushfires.
As of the latest update, there have been 1,000 claims made due to the NSW bushfires, with estimated insurance losses of $130 million.
No, IAG, which owns the NRMA brand, is thought to be the most exposed to the NSW bushfires. Suncorp, which owns AAMI and GIO, is the next most exposed.
Suncorp is focusing its attention on the needs of customers affected by the bushfires, ensuring they receive the support and assistance they require during this tragic event.
Patrick Snowball is the chief executive of Suncorp. He mentioned that while it's too early to determine the exact exposure to the bushfires, the claims are within the company's reinsurance cover.
Ziggy Switkowski is the chairman of Suncorp and has also taken on the role of chief executive at NBN Co temporarily, while a permanent replacement is found.
To manage his responsibilities, Ziggy Switkowski has taken a leave of absence from the board of Oil Search and resigned from Opera Australia and Lynas Corporation, ensuring he can focus on both Suncorp and NBN Co.
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