MARCIA BLOWS SUNCORP'S EQUITY TARGET

MARCIA BLOWS SUNCORP'S EQUITY TARGET

SUNCORP Group Limited (ASX:SUN) has released an estimated damage bill following Tropical Cyclone Marcia, with the insurer unlikely to reach its equity target.

The Category 5 storm and associated flooding is expected to cost between $120 million and $150 million.

While the insurer's total cost of natural hazard expenses for the financial year will be in the range of $690 million and $720 million, up from its $595 million allowance.

The impact of Cyclone Marcia last month combined with the Brisbane hailstorm in November 2014 has put pressure on the group's return on equity target of 10 per cent in FY15.

"It's disappointing that our return on equity target will unlikely be met, however the group remains well placed with a resilient balance sheet, solid underlying earnings and a strong culture focused on supporting customer's," according to Suncorp CEO Patrick Snowball (pictured).

The insurer anticipates up to 10,000 claims to roll in across its brands, including AAMI, Apia, GIO and Vero.

Assessors are visiting around 100 properties each day in the hardest-hit areas of Rockhampton, Yeppoon, Biloela and Maryborough.

Snowball says the company's priority is ensuring customers return to their homes safely and swiftly.

"Our panel of builders have already commenced work on some properties as we prioritise displaced, elderly and infirm customers," he says.

"We have a long and proud history of supporting Queenslanders through major weather events and this is no exception."

Get our daily business news

Sign up to our free email news updates.

Please tick to verify that you are not a robot

 

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Australian Millennial managers look to offshoring to solve global talent shortage problem
Partner Content
New research reveals that more than half of Australia’s next-gen leaders are cons...
Cloudstaff
Advertisement

Related Stories

Fintech Paypa Plane to double team size after securing $10m in Series A backed by Mastercard

Fintech Paypa Plane to double team size after securing $10m in Series A backed by Mastercard

Brisbane-based cloud payments software provider Paypa Plane has rai...

What can we learn from the collapse of Porter Davis Homes Group?

What can we learn from the collapse of Porter Davis Homes Group?

Today was a dark day for the Australian construction industry with ...

Infrastructure builder Lloyd Group goes bust amidst "eroded project margins"

Infrastructure builder Lloyd Group goes bust amidst "eroded project margins"

After 44 years in business as a family company that started in Melb...

Another home builder collapses as Porter Davis calls in liquidators

Another home builder collapses as Porter Davis calls in liquidators

A home builder that was forecasting $555 million in revenue this fi...