SUN 1.54%: The Queensland based insurer took a first crack at estimating the cost of the recent floods that impacted much of the east coast a fortnight ago. They said 7,600 claims had been received across the three states, though this number is expected to climb as many properties that remain inaccessible. Net claims costs are expected in the range of $230-250m, the upper end of that sees a single event reinsurance program kick in which would cap the costs to Suncorp. The certainty helped calm the market, SUN shares had fallen ~10% in the early days of the event however the $250m level was inline with expectations.
We prefer IAG in the insurance space.
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