Suncorp Group reduces reinsurance by A$500 million

Australian insurer Suncorp Group has announced a A$500 million reduction in its reinsurance cover.

Subsequently the upper limit on Suncorp’s main catastrophe program has reduced to A$5.3 billion from A$5.8 billion. The maximum event retention is A$250 million.

Additional cover has been purchased to reduce this retention to A$200 million for a second Australian event and to A$50 million for third and fourth events.

“Despite an unprecedented sequence of severe earthquakes, cyclones, floods and storms over the last three years, Suncorp has strengthened its balance sheet and capital position due, in part, to the reinsurance programs it had in place,” said Patrick Snowball, chief executive officer at Suncorp Group.

“This year’s program provides similar protection while also supporting the Group’s strategic growth objectives and the transition towards APRA’s LAGIC rules”.