I for one am a bit surprised that Suncorp shares are still trading in the $8.xx's.
I am aware they have reinsurance for most of the flood damage, and they have had to purchase more reinsurance.
Surely this new cyclone is going to require yet another (even more expensive) reinsurance top up. Not to mention chew up more of their retention.
Then what about the banking arm. Bad debts were already likely to rise in Qld before all these weather events.
IMO the Commerical property market could still see more bad loans.
Business sentiment not great at the moment.
Lastly, a bursting resi property bubble on the S&G Coasts and potentially one in Brisbane makes the risks to Suncorp appear just a little too much at this stage.
SUN Price at posting:
$8.31 Sentiment: None Disclosure: Not Held
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