SUN +0.82%: the insurer closed the day higher despite lifting natural peril claim guidance following the devastating weather events across Australia’s east coast. Given the length of the severe weather, it was classed as 4 separate natural hazard events in their reinsurance cover resulting in a small $25m increase to natural hazard cost expectations for the year. The CEO was singing the praises of the company’s ability to respond to the devastation saying resources were deployed in record time where needed and the online claims process running smoothly. While this outcome was a little better than the market had priced in, it does continue to show the squeeze being faced by insurance companies with higher reinsurance costs, though they have been able to pass on reasonable premium increases to customers along the way.
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