One of the country's biggest insurers has reported a 23 percent drop in profit due to a volatile investment market and increased natural disaster costs.
Flooding in Westport, July 2021 Photo: Supplied/NZ Defence Force
Suncorp New Zealand, which operates the AA, Asteron and Vero brands, said net profit fell $50 million to $165m for the year ended June.
The company said its profit had suffered by major natural disasters with the cost of six events above its $5m threshold.
The biggest claim was last year's July rainfall event, which cost $25m.
It said overall natural disaster claims increased by more than a quarter to $107m, exceeding its full year allowance by $45m, which was also higher than last year.
The company recorded investment losses of $30m because of rising bond yields and volatile share markets.
General insurance profit was down 15 percent, with top line growth offset by rising claims and investment market impacts.
Its life insurance business reported a 60 percent drop in profit.
Overall claims topped a $1 billion, with inflation also driving up costs.
Suncorp said the New Zealand division continued to make good progress on key strategic priorities of growing brands.