Suncorp (ASX:SUN) share price higher despite High Court ruling

The High Court has made a ruling…
The post Suncorp (ASX:SUN) share price higher despite High Court ruling appeared first on The Motley Fool Australia. –

The Suncorp Group Ltd (ASX: SUN) share price is pushing higher today despite being dealt a blow in the High Court.

At the time of writing, the banking and insurance giant’s shares are up 1.5% to $11.06.

What has happened?

This afternoon Suncorp provided the market with an update on its business interruption insurance.

According to the release, the High Court of Australia’s has stated that special leave to appeal will not be granted for the Insurance Council of Australia (ICA) first industry test case. This test case relates to the application of the Quarantine Act exclusion to Business Interruption (BI) policies.

This means that the High Court of Australia is upholding the NSW Court of Appeal’s November 2020 judgment. As a result, certain policy exclusions referencing the “Quarantine Act and subsequent amendments” cannot be read as references to the Biosecurity Act, and therefore cannot be relied on in relation to COVID-19 BI claims.

However, Suncorp notes that the decision does not mean that policies referencing the Quarantine Act will automatically respond to COVID-19 related claims. Furthermore, the company also advised that it continues to monitor legal developments in relation to business interruption. This includes the second ICA BI industry test case, which is due to be heard later in the 2021 calendar year.

How will this impact Suncorp?

Suncorp has already prepared for this eventuality so the damage from these claims has already been taken into account.

The release explains that a provision for potential business interruption claims related to COVID-19 of $214 million was reported with its interim results in February this year. This provision amount is not expected to be impacted as a result of today’s decision from the High Court.

Though, the company will complete a full review of its provisions as part of its normal processes to prepare its full year results. It has also recommended customers lodge any COVID-19 business interruption claims they may still have and will assess them as expeditiously as possible and in accordance with the policy terms and circumstances.

The post Suncorp (ASX:SUN) share price higher despite High Court ruling appeared first on The Motley Fool Australia.

Should you invest $1,000 in Suncorp right now?

Before you consider Suncorp, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Suncorp wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

2 high yield ASX dividend shares rated as buys

Did CBA (ASX:CBA) just make it harder to get a home loan?
Latest ASX shares to be hit by a broker downgrade today

Top brokers name 3 ASX dividend shares to buy today

Suncorp (ASX:SUN) share price hits new 52-week high

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!