IAG Queensland claims already at 3,600
Insurance Australia Group Ltd (ASX:IAG) has been sunken with claims arising from the devastating Queensland floods, but says it is too early to estimate the likely claim costs.
The company said it has received approximately 2,400 claims from the recent severe weather in South East Queensland which started in early January 2011.
"Given the ongoing nature of this event, it remains too early to determine the likely claim cost which will be included in the Group's result for the second six months of this financial year," IAG said.
IAG chief executive Mike Wilkins confirmed IAG had also received approximately 1,200 claims arising from the heavy rain associated with Tropical Cyclone Tasha which commenced in late December 2010.
While it remains too early to provide a definitive claim cost for this event as claims are still being assessed, IAG's current expectation is that the net claim cost will be between $10 million to $30 million, according to IAG.
Total natural peril claim costs for the six months to 31 December 2010 are expected to be in the range of $120 million to $140 million.
Mr Wilkins said IAG's renewed catastrophe reinsurance programme for the year commencing 1 January 2011 was structured similarly to that which operated in 2010. Under the programme, the Group's maximum event retention for a first event in calendar year 2011 is $150 million.