The company’s natural hazard allowance for 2024 was expected to increase to $1.36 billion, up from $1.16 billion last financial year. It also revealed its natural hazard result for 2023  was between $1.25 billion and $1.28 billion compared with its allowance of $1.16 billion.

Suncorp chief executive Steve Johnson said the company continued to see a significant reassessment of risk by reinsurance partners. This was because of the increased natural hazard activity in recent years, which would include floods and fires that have hit the east coast of Australia.

“This, combined with broader inflationary pressures across the economy, continues to impact the cost of reinsurance across the industry,” he said.

Johnston said the issue underscored the challenges facing the insurance industry.

The changes to reinsurance would mean an additional $340 million in the level of capital needed to be held by the company’s insurance businesses. The company has also joined the Federal Government’s cyclone reinsurance pool.

Also, the company’s maximum event retention increased to $350 million for the first large event and $250 million for the second.

Other impacts on its financial results for the 2022-23 year were a $47 million restructuring cost driven primarily by flexible working arrangements.