Suncorp flags up potential $118m cost

Australian insurer Suncorp has flagged up a potential issue relating to its 2011 catastrophe reinsurance programme which could lead to a A$118 million ($91.4 million) impact.

In an analyst pack, accompanying its financial results, Suncorp said it had been advised of the issue which could impact on expected recoveries on February 9, 2015.

“This potential issue is contrary to Suncorp’s understanding of its additional reinsurance purchases made in 2011. This issue is of a technical nature and relates to the placement of reinsurance cover after the combination of the September 2010 Christchurch earthquake, the Brisbane floods and Cyclone Yasi.”

Suncorp added that it was uncertain whether this will have any financial impact, but its maximum exposure will not exceed $118 million after-tax.