UPDATE 1-Suncorp says storm claims cost at A$150-A$180 mln
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SYDNEY, Dec 20 (Reuters) - Suncorp-Metway Ltd (SUN.AX), Australia's second-biggest car and home insurer, said on Thursday its estimated costs from storms that hit New South Wales state earlier this month were between A$150-A$180 million ($129-$155 million).
It said the storm claims would have a material impact on the group's first-half profit, but added it was too early to update the insurance trading margin.
According to Suncorp's reinsurance treaty, the company bears the cost of up to A$200 million per property casualty event while the excess is paid by the reinsurer.
On Wednesday, Insurance Australia Group Ltd (IAG.AX), Australia's top car and home insurer, cut its insurance margin forecast to between 9-11 percent from 11-13 percent for fiscal 2008 due to the storms.
Suncorp Chief Executive John Mulcahy said the group's total cost from weather events during the first half of 2008 has risen to between A$230-A$260 million, exceeding Suncorp's provision for weather events, which is about A$100 million per half year.
Suncorp said the widening credit spreads due to the global subprime crisis are also expected to mark down the value of its reserve investments in the short term.
Suncorp shares fell 1.3 percent to A$17.11 on Wednesday and are down 13.1 percent so far this year, compared with a 9.6 percent rise in the benchmark S&P/ASX 200 index .AXJO. ($1=A$1.16) (Reporting by Denny Thomas;)
