April 24 (Reuters) – Australian general insurer Suncorp said on Friday it had purchased a five-year aggregate reinsurance cover that will provide up to A$2.4 billion ($1.71 billion) in total protection over the period.
The agreement, expected to provide around A$800 million of protection annually, is set to start from June 30.
Suncorp said its fiscal 2027 aggregate reinsurance cover will attach at A$1.85 billion, A$50 million above its expected natural hazard allowance of A$1.8 billion, excluding claims handling expenses and profit commission.
“The agreement is expected to reduce the overall volatility in net claims costs resulting in a one-off capital release of approximately A$100 million through a modestly lower capital target,” the firm added.
The insurer now also expects its gross written premium growth for fiscal 2026 to be around 3%.
($1 = 1.4023 Australian dollars)
(Reporting by Shivangi Lahiri in Bengaluru; Editing by Maju Samuel)
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