insurance

Australian company Wesfarmers (WES) is expecting a 74 per cent fall in the first half earnings of its insurance division due to the natural disasters that hit Australia.

Reinsurance groups are insisting that major insurer Suncorp (ASX:SUN) increase its premiums.

Suncorp is resisting the price hikes due to recent extreme weather conditions negatively affecting company performance, resulting in stalled talks with the reinsurers. The company said that short term profits will take a significant hit from bourgeoning reinsurance costs.

Suncorp (ASX:SUN), the Australian flood insurer, stated that it may withdraw from covering affected properties if Wivenhoe Dam is not managed properly in the future. The company automatically covers floods, insuring 37 percent of Queensland households.

In the aftermath of the Queensland disaster, the head of Insurance Australia Group (ASX:IAG) proposed more aggressive safety measures so that all concerned are treated fairly. Chief Executive Mike Wilkins enumerated safety measures in the wake of allegations of neglect from policy holders, during a lunch meeting yesterday at the Committee for Economic Development of Australia.

IAG (ASX:IAG), owner of NRMA and RACV, has issued a statement that it expects to report a drop in annual profit for the 2010 fiscal year. A day after competitor, QBE Insurance announced profit forecasts downgrades, Insurance Australia Group have released poor financial figures on what most analysts were already expecting.

IAG Financial Forecasts and Numbers

Internationally renowned insurance company QBE Insurance Group (QBE), which runs businesses in as many as 44 countries is taking necessary steps in response to the growing concern among its investors regarding the possibilities of the company getting exposed to the recent BP oil incident at the Gulf of Mexico claming that the insurer has sufficient reinsurance protection under its belt which will help it to cover any large insurance claim.