The Suncorp Group Ltd (ASX: SUN) share price is down today after releasing an update on costs for recent south-east Queensland storms.
Suncorp is one of the largest insurance companies in Australia and New Zealand. It operates under many recognised insurance brands such as AAMI, GIO, Bingle and more. In 2024 Suncorp sold its banking segment to ANZ Group Holdings Ltd (ASX: ANZ), making Suncorp’s sole focus insurance since then.
Costs for recent Queensland storms
Supercell thunderstorms hit south-east Queensland and parts of northern New South Wales over the last few days, with large hail and destructive winds. Suncorp has released an early update on estimated costs, as of 4pm on 26 November 2025.
The company said that it had received just over 10,000 claims with half of these claims being for home, and the other half for motor.
Suncorp said that it is still early in terms of assessment, however it expects the net costs for the company to be $350 million. It noted that it has reached the “reinsurance maximum event retention”.
How much is Suncorp’s allowance for natural hazards?
So far in FY26 (1 July 2025 to 25 November 2025) the estimated range of total net costs for natural hazards is between $1.15 billion to $1.275 billion.
Suncorp’s FY26 allowance for natural hazards is $1.770 billion.
The company said that its main catastrophe cover remains in place, with a “maximum event retention of $350 million for a further two large events” after its FY26 purchase of cover for a third large event up to $1 billion.
Suncorp said that the retention for the next large Australian event is reduced to between $240 million and $280 million.
Is the Suncorp share price a buy?
The Suncorp share price is down around 20% for the year, so it is a lot cheaper than it was in January.
The share prices of insurance companies can be very volatile. They’re obviously vulnerable to damaging weather events, but They’re also vulnerable to economic downturns because investors become worried about the insurance company’s financial strength. In periods like the GFC and COVID the Suncorp share price was hit hard.
If I were considering buying Suncorp shares, I would want to be buying during an economic downturn. Even though it is trading at virtually 12-month lows, I’m not keen on the insurance industry for my portfolio and the roll-the-dice nature of damaging weather events, so I’d be taking a look at other ASX dividend shares for growing dividends.
