News: SUN Suncorp Group Provides FY24 Reinsurance Program Structure

July 4 (Reuters) - Suncorp Group Ltd (SUN) :

• FY24 REINSURANCE PROGRAM UPDATE
• PROVIDES FY24 REINSURANCE PROGRAM STRUCTURE
• MAIN CATASTROPHE PROGRAM PROVIDES PROTECTION FOR LOSSES BETWEEN A$350 MILLION AND A$6.4 BILLION
• GROUP'S MAXIMUM EVENT RETENTION INCREASED TO A$350 MILLION FOR A FIRST LARGE EVENT AND A$250 MILLION FOR A SECOND LARGE EVEN IN FY24
• AUSTRALIAN DROPDOWN PROGRAM BEEN PLACED THAT REDUCES THIRD AND FOURTH EVENT RETENTION FOR EVENTS IN AUSTRALIA TO A$150 MILLION
• AT A$6.4 BILLION, FY24 LIMIT REMAINS IN EXCESS OF AUSTRALIA AND NEW ZEALAND REGULATORY REQUIREMENTS
• GROUP ALSO RENEWED ITS QUOTA SHARE ARRANGEMENT CEDING 30% FROM QUEENSLAND HOME INSURANCE PORTFOLIO
• IN FY23 BUYDOWNS PROVIDED COVER DOWN TO NZ$50 MILLION FOR A FIRST EVENT AND NZ$25 MILLION FOR A SECOND EVENT
• ALSO RENEWED ITS QUOTA SHARE ARRANGEMENT CEDING 30% FROM QUEENSLAND HOME INSURANCE PORTFOLIO
• COMBINED COST OF FY24 CATASTROPHE REINSURANCE PREMIUMS AND NATURAL HAZARD ALLOWANCE EXPECTED TO INCREASE BY A$250 MILLION FROM FY23
• IN NEW ZEALAND, BUYDOWN COVER HAS BEEN 52% PLACED TO PROVIDE COVER BETWEEN NZ$100 MILLION AND GROUP'S MAXIMUM EVENT RETENTION
• NATURAL HAZARD ALLOWANCE FOR FY24 IS EXPECTED TO INCREASE TO A$1,360 MILLION
• CHANGES TO REINSURANCE PROGRAM WILL RESULT IN A$340 MILLION INCREASE IN LEVELS OF CAPITAL REQUIRED TO BE HELD GENERAL INSURANCE BUSINESSES
• VIEW TO MAINTAINING UNDERLYING INSURANCE MARGIN WITHIN A 10%-12% RANGE FOR FY24
• INCURRED RESTRUCTURING COSTS OF A$47 MILLION IN 2H23
• HIGHER CATASTROPHE REINSURANCE PREMIUMS, NATURAL HAZARD ALLOWANCE ARE EXPECTED TO REDUCE EXCESS TECHNICAL PROVISIONS IN CAPITAL BY A$100 MILLION
• GROUP NATURAL HAZARD EXPERIENCE FOR FY23 ESTIMATED TO BE BETWEEN A$1.25 BILLION AND A$1.28 BILLION AGAINST AN ALLOWANCE OF A$1.16 BILLION