Insurance Australia Group’s shares spiked by 1.5% in the first half hour of trading last Thursday after the major insurer announced a $1 billion increase in its 2019 catastrophe reinsurance program.
The group renewed its gross reinsurance protection to up to $9 billion for 2019, up from the prior year’s $ 8 billion, in anticipation of the modest increase in the underlying aggregate exposure in Australia and the approximate 5% growth in New Zealand.
IAG shares were trading at $7.05, or 1.5% higher, in the first half-hour of trade on Thursday after announcing the reinsurance boost, though it saw a slight decrease in the afternoon, with shares trading at $6.955 at 1405 AEDT, still ahead by 0.65%, the Australian Associated Press reported.
IAG said the bill from the NSW hailstorm would potentially hit $169 million, while Suncorp reported that it had received 24,800 claims so far and expects this figure to rise over the coming weeks as customers return from holidays, AAP reported.