IAG claims cost climbs on Sydney hailstorm

IAG receives more than 20,000 claims in relation to a hailstorm in Sydney, with net claims cost expected to be around $160 million.

IAG expects the cost of claims in relation to a hailstorm in Sydney will be around $160 million. (AAP)

IAG has received more than 20,000 claims in relation to a hailstorm in Sydney on February 18 and expects the cost will be around $160 million.

The insurer behind the NRMA, Coles, and CGU insurance brands expects a maximum possible exposure of up to $200 million, after reinsurance.

IAG says its net claim cost up to the end of February is $650 million, which means it can absorb about $130 million of net natural peril claim costs in the final four months of the financial year.