News: SUN UPDATE 1-Australia's Suncorp to take $87 mln hit from coronavirus

(Recasts and adds details on dividend, loan deferrals, costs)

May 11 (Reuters) - Australian insurer Suncorp Group (SUN) said on Monday it expects to take a A$133 million ($87 million) hit from the coronavirus pandemic, partly due to the negative impact on gross written premiums.

The crisis has added to the woes of Australian insurers, which have yet to recover from a tumultuous summer as raging wildfires, drought and hailstorms in the country led to a surge in claims that weighed on their margins.

Suncorp Group Chief Executive Steve Johnston said the insurer has already provided discounts and premium waivers to 12,300 insurance customers in Australia and New Zealand and approved A$4.05 billion in loan deferrals, Suncorp Group CEO Steve Johnston said in a statement.

The insurer said 2020 group costs are estimated to be to be slightly above A$2.7 billion, including pay and leave entitlements remediation to some employees of A$40 million-A$70 million.

Suncorp statement said it would adopt a "conservative mindset" when making a decisions about any final dividend. Australia's regulator last month asked banks and insurers to consider deferring dividend payouts or use buffers like dividend reinvestment plans until the impact of the pandemic is better known.

($1 = 1.5328 Australian dollars)