The Suncorp (ASX: SUN) share price is sinking today after the insurance company reported on its presence in flood-affected NSW.
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The Suncorp Group Ltd (ASX: SUN) share price is slipping this morning, as the insurance and banking company reiterated its presence in flood-impacted NSW, having received more than 5,400 claims so far.
NSW is currently experiencing its worst flood event in 60 years. The ABC News reported at least 18,000 people had been evacuated from their homes in Western Sydney and the mid-North Coast. Victoria and South-East Queensland have also faced extreme rain conditions in recent days.
At the time of writing, the Suncorp share price is down 0.8%, trading for $9.91.
Let’s look closer at the company’s announcement this morning.
Boots on the ground in Port Macquarie
Suncorp advised today that it expected the number of flood claims to increase over the coming days.
The insurer said it would update the market on repair costs once incoming claims stabilised. Only then would it be able to give an accurate estimate.
Of all claims received by Suncorp so far, more than 85% relate to property damage. In terms of location, the company confirmed that NSW residents made 80% of claims.
Words from the management
Suncorp CEO Steve Johnston commented on the challenges facing residents of flood-affected areas and comforted those with Suncorp’s insurance.
Our teams are on the ground in Port Macquarie, where we have seen the most claims to date, and we will deploy to other regions when it is safe to do so.
The next few weeks will be challenging for residents as they return to their homes, assess the damage and start the clean-up.
Our Customer Support Team will provide face-to-face support by arranging emergency repairs, organising temporary accommodation for customers whose homes have been severely damaged and providing cash payments for emergency purchases.
Mr Johnston also commended the federal and state governments’ speed in classing tradespeople and insurance workers as essential. Doing so has enabled Suncorp to support flooded communities without worrying about border restrictions.
We are committed to getting our customers back on their feet as soon as possible so it is important that we can get assessors and repairers on the ground to affected regions quickly given the magnitude of this event.
Suncorp share price snapshot
The Suncorp share price is up 0.71% year-to-date and has increased by 16.75% over the last 12 months.
The insurance and banking giant has a market capitalisation of around $12.7 billion, with approximately 1.2 billion shares outstanding.
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Motley Fool contributor Brooke Cooper 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.