One of the country's largest insurance groups, Suncorp, has reported a sharp fall in its half year profit on the back of increased claims and lower investment returns.
Buller High School and surrounds in Westport, flooding, 17 July 2021 Photo: Supplied/NZ Defence Force
The owner of Vero, Asteron Life, and AA Insurance, has reported a net profit for the six months ended December of $84 million compared to $129m the year before.
Local chief executive Jimmy Higgins said the company's underlying performance showed solid growth and improved efficiency, but was being affected by more severe weather events.
"New Zealand experienced a number of flood and storm events in the second half of 2021, including the severe storm that affected Westport and all of central New Zealand in July, and flooding in west Auckland in August."
The three big weather events alone resulted in $52m of claims, and overall weather-related claims for the period were up 41 percent to $72m.
Income from premiums was up about 14 percent, but the overall cost of claims rose 17 percent, and low interest rates had affected the return from investments.
Profit from the general insurance business fell 22 percent to $78m, while the life insurance division had a 79 percent slump in profit to $6m.
"We're experiencing rising input costs to both premiums and claims as well as disruptions in global market conditions that are significantly affecting investment returns. But we continue to focus on supporting New Zealanders and Kiwi businesses through difficult times."
Asteron provided more than $3.8m in premium waivers and discounts on hardship grounds.
There was good growth across all its operations, but the company was focusing on the growing impacts of climate change and weather events, which it believed needed broader discussion, Higgins said.
"It's time for New Zealanders to come together to ensure that we are taking steps to address both our own contribution to global warming, and the possible impact on our communities."