Suncorp says its business resilience will be enhanced by the purchase of an additional reinsurance cover that supplements its main catastrophe program.

The aggregate arrangement provides $800 million of protection annually, up to a total of $2.4 billion across five years, providing cover for an accumulation of events above its allowance.

The insurer says the economic cost is expected to be broadly neutral in terms of modelled expected recoveries and profit share commissions.

Acting CEO Jeremy Robson says the underlying insurance trading ratio margin outlook is expected to be unchanged, remaining at the upper end of the 10%-12% range, while the added protection significantly improves resilience and reduces earnings volatility.

“This additional aggregate cover, in combination with the remainder of our reinsurance program, increases the resilience of our business to natural hazards and the related uncertainties for the next five years,” he said.

Suncorp’s natural hazard experience this financial year is expected to be about $250 million above its $1.77 billion allowance, subject to no further material events.

Next year it is expected to be $1.85 billion, or $1.8 billion excluding claims handling expenses and profit commission.

The cover, purchased amid improved reinsurance market conditions, attaches at $1.85 billion and will be indexed for exposure growth over time.

Work on renewing the remainder of Suncorp’s reinsurance, including its main catastrophe cover, is continuing, with arrangements on track to be finalised by June 30.

Suncorp also says gross written premium growth this financial year is now expected to be about 3%, reflecting New Zealand dollar weakness and impacts from “improved risk mix shifts” in home.

At its half-year results, the insurer expected GWP growth to be about the “bottom of the mid single digit range”, with CEO Steve Johnston defining that range as 4%-6%.

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From the latest Insurance News magazine: Find out what the market has in store for you, as we reveal some highlights from Insurance News and Finity's 2026 INFORM report

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