Suncorp

IAG said it was still reviewing the judgment to determine whether to appeal any aspects of the ruling.

The carrier made recoveries on only one disaster event in the past year.

It will cover home, motor and commercial property portfolios across Australia and New Zealand.

The Australian insurer said it received approximately 3,750 claims relating to recent flooding, as the low deductible on its losses implies it may trigger a dropdown or aggregate cover.

The event will further erode the deductible in the group’s aggregate excess of loss reinsurance programme.

The New South Wales inundation is the first major flood event in the state in a decade, prompting reinsurance fears.

The Australian carrier has also modestly increased its reserves for Covid-19 BI claims.

The insurer said its reserving was still adequate after the court supported its overall approach, but said biosecurity exclusions were not sufficient to decline claims.

This event brings total Australian hailstorm losses to over A$3.64bn in 2020, Perils said.

Suncorp, IAG and QBE reinsurers could face significant recoveries after a landmark court ruling.

A fresh BI ruling in Australia this week highlighted the industry's reason for caution over Covid exposure as legal actions continue.

The carrier plans to raise A$750mn in new equity capital to help shore up its balance sheet, and has further eroded its aggregate reinsurance.