Australian insurer Suncorp has revealed that its total cost of natural catastrophe events in the first half of 2026 (H1’26) is expected to be A$1.319 billion, well above its budget of A$866 million, eroding the majority of its A$1.77 billion provision for full year 2026 (FY’26), meaning the carrier will recover through reinsurance.
As we wrote in November 2025, large hail and damaging winds expected to hit southeast Queensland and northern New South Wales will result in Suncorp retaining full reinsurance of $350 million under its primary catastrophe insurance. Suncorp’s latest figures show it is the only one of 26 first-half events to impact the company to hit a $350 million retention rate.
The insurer explained that primary catastrophe cover remains in effect for the 2026 financial year, but based on current estimates, the amount retained for the next major Australian event will be reduced to $260 million.
In the first half of 2026, the company had nine separate events worth more than AU$10 million. These include low pressure along the eastern states coast at $17 million, hail on the Fraser Coast at $59 million, hail and storms in New South Wales and Queensland at $25 million, severe thunderstorms in the eastern states causing $240 million in damage, New Zealand wind storms at $34 million, spring storms and hail in southeast Queensland at $128 million, storms in eastern Australia at $26 million, and the aforementioned southeast Queensland storms and hail at $3.5 A$38 million for southeasterly winds and storms.
Suncorp chief executive Steve Johnston said that while a series of significant weather events will impact reported profits and shareholder returns for the half year, they enhance the value of insurance and the role Suncorp plays in supporting customers and rebuilding communities.
He continued: “The hailstorms that hit parts of Australia’s east coast, particularly south-east Queensland, in October and November were particularly damaging, with more than 37,000 home, car and business insurance claims received.
“Our rapid response through our Disaster Management Center and the support we provide through the deployment of our Mobile Disaster Response Center has accelerated the speed with which we can get our customers back on their feet. Our pop-up vehicle assessment center evaluated more than 4,000 vehicles in two weeks, speeding up the repair process.”
In addition, as of January 11, 2026, Suncorp has received approximately 80 home and car insurance claims from ex-tropical cyclone Koji; of these, the federal government’s cyclone reinsurance pool provides coverage for home and small business loss claims occurring before 10am AEST on January 13, 2026. The insurer has also received about 60 home and car claims related to bushfires in Victoria.
Increased natural catastrophe experience is expected to result in claims risk-adjusted expenses of approximately A$35 million higher than the first half 2025 results.
“We ask everyone to continue to put safety first, remain vigilant and heed warnings and advice. Stay away from affected areas, particularly if there is flooding or a bushfire warning remains in place. Our thoughts are with affected communities, including Longwood in Victoria where a tragic loss of life has occurred,” Mr Johnston added.
He continued: “We encourage affected customers to lodge a claim online as soon as possible. To date, this has not resulted in substantial claims activity, but we are aware that the weather system continues to impact Queensland coastal communities, bringing strong winds, heavy rainfall and flash flooding. With the establishment of a regional office in Townsville, we are well-positioned to support customers in central and northern Queensland.”
“The risk of bushfires remains high across southern Australia, particularly in Victoria, and we are monitoring it closely at our Disaster Management Center in Brisbane. We are using satellite imagery to assess damage before our teams can safely reach the ground.”
