Suncorp is an Australian finance, insurance, and banking corporation. Photo: 123RF
Australian insurance group Suncorp has increased its New Zealand profits on higher prices and greater market share, but is bracing for significant claims from the Auckland floods.
The group's New Zealand brands, Vero and independently operated joint venture AA Insurance (part-owned by Suncorp NZ and the NZ Automobile Association), said it had received more than 8000 claims relating to the upper North Island floods.
"The impact of this weather event is still being assessed ... and the gross event cost is yet to be determined," it said in a statement.
"The group's comprehensive reinsurance program provides additional protection for New Zealand losses. The losses from this event will be capped at NZ$50 million, net of reinsurance cover."
For the six months ended December, Suncorp's New Zealand business reported a net profit of $91m compared with $84m the previous year, with its general insurance market share rising slightly to 25.5 percent and life insurance to 11.7 percent.
The profit from its life insurance business doubled as it gained market share, while general insurance returns edged lower on increased property claims.
Premium income rose 12 percent to $1.18 billion, as inflation lifted prices and the company expanded its profit margins.
Net claims rose nearly 18 percent to $583m, and the increased value of claims and several large loss property fires, while operating expenses rose 10 percent .
During the six month period Suncorp had a total of $59m in natural hazard claims, including a $20m hit from the storm that hit the top of the South Island last August.
Suncorp said its aims for New Zealand were to increase use of digital technology to connect its major broker groups, while simplifying its range of consumer products.