More than 13,700 claims related to the impact of ex-tropical cyclone Oswald had been received by the company to date, IAG said on Monday. Photo: Getty

Ruth Liew

Insurance Australia Group is expected to take a $120 million to $140 million hit from claims associated with ex-Cyclone Oswald.

The listed insurer’s Australia direct and commercial business CGU received 13,700 claims from the cyclone which hit Queensland and parts of New South Wales last month, according to a company update on Monday.

The group also weathered 600 claims from the bush fires that ravaged Tasmania and parts of New South Wales and Victoria. The estimated cost from the bush fires is around $35 million.

IAG boss Mike Wilkins said the group’s recovery operation was “well underway”.

“Our Australia Direct and CGU businesses offer flood and bushfire cover to customers across Australia and we have assessors and builders in all impacted areas already helping customers,” he said.

IAG’s 2013 catastrophe reinsurance programme has a maximum first event retention of $150 million.

IAG’s update comes after rival insurer Suncorp said it received around 23,000 claims stemming from ex-tropical Cyclone Oswald.

The listed insurer said its 30 per cent “quota share arrangement” on the Queensland home insurance portfolio will help limit the net claims costs to between $200 million and $220 million.

Suncorp said natural hazard events in January, including bushfires and storms in Tasmania and Victoria, had cost the company around $50 million.

“Suncorp makes provisions for natural hazards and has an allowance of $520 million for events in the 2013 financial year,” the insurance company said in a statement.

For the six months to December, Suncorp’s total catastrophe claims hit $147 million.

Flooding from ex-cyclone Oswald in Queensland have caused insurance losses of $553 million, data from the Insurance Council of Australia shows.