The latest market talks on financial services. Exclusively on Dow Jones Newswires at 4:20 a.m. ET, 12:20 p.m. ET and 4:50 p.m. ET.
0348 GMT – Australia's comparatively drier weather should help protect insurers' profitability due to lower catastrophe costs, Morgan Stanley analysts say in a note. With rainfall in Australia's capital cities reaching its lowest level in 10 years so far this year, IAG and Suncorp are primed to over-earn in the 2024 financial year, MS says. History shows that a 2-3% change in domestic motor insurance loss ratios is possible through an increase or decrease in rainfall, although this also depends on how well insurers manage pricing against claims inflation, says MS. At the same time, a new state reinsurance pool is intended to protect insurers from Cyclone Jasper and help them stay under their disaster budgets. MS expects Suncorp, which primarily targets customers in Queensland, to be most exposed to Cyclone Jasper, while IAG has limited exposure to northern Australia. ([email protected])
Copyright ©2023 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8
Comments are closed.