News: IAG IAG Increases Expectation For FY22 Net Natural Perils Claim Costs To A$1,045 Mln

Nov 2 (Reuters) - Insurance Australia Group Ltd (IAG) :

• RECEIVED ABOUT 14,000 CLAIMS BY 4PM ON 1 NOVEMBER AND THIS IS EXPECTED TO RISE FURTHER OVER COMING DAYS
• INCREASED ITS EXPECTATION FOR FY22 NET NATURAL PERILS CLAIM COSTS TO A$1,045 MILLION
• REVISED FY22 EXPECTATION ALSO INCLUDES APPROXIMATELY A$510 MILLION FOR PERILS EVENTS FOR REMAINDER OF FINANCIAL YEAR
• NET COST FOR EVENT ANTICIPATED TO BE A$169 MILLION, MAX RETENTION FOR FIRST LOSS UNDER IAG'S CATASTROPHE PROGRAM
• LOWERED ITS FY22 REPORTED INSURANCE MARGIN GUIDANCE RANGE FROM 13.5 - 15.5% TO 10.0 - 12.0%
• ESTIMATES THAT A$270 MILLION DEDUCTIBLE ATTACHED TO FY22 AGGREGATE COVER HAS BEEN ERODED BY A$209 MILLION AS A RESULT OF RECENT WEATHER EVENTS
• REMAIN CONFIDENT IN IAG'S OPERATIONAL MOMENTUM IN FY22, AFTER STRONG START IN Q1
• A$280 MILLION INCREASE IN NET NATURAL PERILS CLAIM COSTS EQUATES TO ABOUT 360 BASIS POINTS AT REPORTED INSURANCE MARGIN LEVEL