Suncorp Group, the Australian primary insurance giant, looks set to make reinsurance recoveries to help it manage losses from the recent South East Queensland severe thunderstorms and hail, with the company saying the net cost is expected to be at its full reinsurance retention.The Insurance Council of Australia (ICA) .As of November 26th, the ICA was reporting that claims from this storm and hail outbreak in Australia had surpassed 27,800.This morning, Suncorp said that as of late yesterday it had received just over 10,000 claims, split approximately 5,000 in property insurance lines and 5,000 in motor claims.

“Although still early in terms of assessment, the net cost to Suncorp is expected to be $350 million, having reached the reinsurance maximum event retention,” the insurer explained..As a result, Suncorp has meaningful reinsurance limit over the retention to absorb the cost of this severe thunderstorm event for the insurer.

It’s the first catastrophe or severe weather event of the financial year to reach Suncorp’s reinsurance retention, with total natural hazard losses currently running somewhere in a range from $1.15 billion to $1.275 billion for the insurer, including the full net retention loss for this event.That remains well under Suncorp’s natural hazards allowance for the current year though, which is set at $1.77 billion.The size of this thunderstorm loss has some ramifications for how Suncorp’s reinsurance responds to future events, the insurer explained.

“Suncorp’s main catastrophe cover remains in place, with a maximum event retention of $350 million for a further two large events, as a result of the FY26 purchase of cover for a third large event up to $1 billion.Based on the estimated cost of the October Eastern States Severe Thunderstorms and the erosion of some deductibles from the recent large events, the retention for a next large Australian event is reduced to between $240 million and $280 million,” Suncorp said..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

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