Insurance group Suncorp expects to take a hit of up to $150 million from Tropical Cyclone Marcia, meaning it is likely to miss its return on equity target for the financial year.
The cost of claims from Suncorp policyholders affected by the cyclone, which hit central Queensland on February 20, is expected to run to between $120 million and $150 million, the insurer said.
About 10,000 claims are expected to be made across Suncorp's insurance brands including AAMI, Apia, GIO and Vero, mainly from Rockhampton, Yeppoon, Biloela and Maryborough.
After the impact of a Brisbane hail storm in November, Suncorp expects its natural hazard expenses for 2014/15 to be between $690 million and $720 million, ahead of the $595 million the insurer had prepared for.
Chief executive Patrick Snowball said it was unlikely Suncorp could achieve its target for a return on equity of 10 per cent.
"It's disappointing that our return on equity target will unlikely be met, however, the group remains well placed with a resilient balance sheet, solid underlying earnings and a strong culture focused on supporting customers," he said.
Suncorp shares dropped 26 cents, or 1.9 per cent, to $13.75.
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