Australian insurers go from bushfires to pandemic in a year to forget

Argonaut Gold

31/12/2020 01:55

** Shares of Australian insurers tumbled to multi-year lows
in 2020 as the COVID-19 pandemic added to the sector's woes,
which was already reeling from natural hazard-related costs due
to bushfires and droughts 
    ** Insurers in the region have struggled this year from
claims owed to pandemic-led business interruptions, forcing some
to scrap dividends and take a hit to earnings
    ** Brisbane-based Suncorp Group  SUN.AX , Australia's
biggest insurer by market cap, down over 23% and on course to
post its biggest annual loss since the 2008 global financial
crisis
    ** Insurance Australia Group  IAG.AX  eyes worst year ever,
down ~38% 
    ** QBE Insurance  QBE.AX  has slumped ~33% this year, its
worst decline on record
    ** James McGlew, executive director of corporate
stockbroking at Argonaut, said 2020 will go down as one of the
most challenging in history for the insurance sector
    ** However, analysts are positive about the turnaround for
Australian insurers 
    ** "Insurers always bounce back...people are more insurance
conscious post the natural hazards & premiums tend to rise as
well," said Brad Smoling, managing director at Smoling
Stockbroking


    
  

 (Reporting by A K Pranav in Bengaluru)
 ((Pranav.AK@thomsonreuters.com; Twitter: https://twitter.com/AKPranav1))