Shares in Suncorp-Metway (SUN) hit a 52-week low of $16.68 on Thursday after the general insurer said the storms that hit Sydney earlier this month are likely to cost the group an estimated $150 million and $180 million.
The grouphas received 21,000 claims since the storms, and estimates the final claims number is expected to reach about 23,000.
Suncorp said it is too early to provide an update on the expected insurance trading margin, but admits the events will have a material impact on the group's first half profit.
In addition, Suncorp addressed concerns relating to the ongoing credit crisis.
"It should be noted that the mark to market impact on widening credit spreads is purely a timing issue, which will unwind in future periods.
"There is no suggestion of credit losses in this portfolio," Suncorp said.
The claims figures follow the same figure of 21,000 claims revealed by Insurance Australia Group (IAG) in relation to the same NSW storms. IAG cut its FY2008 margin forecast to 9-11% from 11-13% on Wednesday.
Suncorp said most of the claims have been for personal insurance claims with only a small number of commercial claims lodged.
Chief executive officer John Mulcahy said the group had an excellent track record of helping customers recover after major weather events and said all of its insurance businesses were focusing on helping customers recover quickly after the storms.
"Suncorp is in the business of paying insurance claims and we are committed to helping our customers get back on their feet as quickly as possible," Mulcahy said.
Mulcahy said that group had experienced a number of serious weather events during the first half of the 2008 financial year.
These include New Zealand storms in July and Lismore storms in October.
Suncorp is one of Australia's top listed 20 companies and owns GIO, AAMI, Apia, Vero, Just Car and Shannons insurance business. Recently it acquired the Promina Group.
Suncorp offers banking, insurance, superannuation and funds management products and services to the retail, corporate and commercial sectors.
Shares in SUN lost 28 cents or 1.6% to $16.83 at 12.56pm AEST.
