Hailstorms and earthquakes this month will cost IAG about $200 million

Marty Melville/AFP/Getty Images

Insurance giant IAG expects net costs from an Australian storm and a New Zealand earthquake this month to be around $200 million.

However, the company says the net natural peril claim costs will be in line with its $680 million allowance for the year.

IAG has 8,000 claims from the severe hailstorms which hit Adelaide and the Mildura region before moving across New South Wales and South East Queensland.

And there are 700 claims, mainly home and commercial, from the earthquake and aftershocks which hit parts of New Zealand from November 14.

“Our thoughts go out to everyone affected by the latest natural peril events in Australia and New Zealand,” says CEO Peter Harmer.

“We know this will be a difficult time for many, and we are focused on doing all we can to help our customers, including enabling them to make insurance claims as quickly and easily as possible.”

IAG shares are currently trading at $5.41, up 1.6%.

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