Insurance Australia Group Limited (IAG) today confirmed that, as at the close of business on 25 March 2010, it had received in excess of 13,500 claims in relation to the severe weather which struck Perth on 22 March. As a consequence, the Group expects to claim on its catastrophe reinsurance cover, capping the total pre-tax cost of this event at $75 million.
To reflect the impact of this event, the Group is lowering its FY10 insurance margin guidance to 9.5% – 11.0%, from 10.5% – 12.0%. The revised guidance assumes IAG’s natural peril costs in the second half of the financial year will exceed the budgeted $184 million allowance by $180 million.
