Suncorp NZ calls for resilience action after wild weather

14 February 2022

Suncorp New Zealand CEO Jimmy Higgins has urged more action to build resilient communities in the face of weather events that are increasingly causing damage.

“Insurance can help our customers pick up the pieces after a storm or a flood, but it’s time for New Zealanders to come together to ensure that we are taking steps to address both our own contribution to global warming, and the possible impact on our communities,” he said.

Damaging weather events last year included the severe storm that affected Westport and all of central New Zealand in July and flooding in West Auckland in August.

The events caused a jump in Suncorp New Zealand claims in the financial first half, while the insurer says its underlying business has continued to show growth and improvements in operating efficiency.

Mr Higgins says three weather events in July, August and September alone resulted in $NZ52 million ($48 million) of claims, and total weather-related claims were $NZ72 million ($66.9 million), up 41.2% on the prior corresponding period.

New Zealand profit after tax, announced with Suncorp Group earnings, fell 34.9% to $NZ84 million ($78 million). Adverse investment market impacts and economic conditions also contributing to the decline.

“We’re experiencing rising input costs to both premiums and claims as well as disruptions in global market conditions that are significantly affecting investment returns,” Mr Higgins said. “But we continue to focus on supporting New Zealanders and Kiwi businesses through difficult times.”

The New Zealand operations comprise the general insurance business, which includes Vero and the AA Insurance joint venture, and a life business.

General insurance profit fell 22% to $NZ78 million ($72.5 million) while life earnings fell 79.3% to $NZ6 million ($5.6 million) due to lower investment returns and higher claims experience.