Suncorp’s weather bill is set to blow out by about $250 million after 18 major weather events across Australia and New Zealand, with the insurer also flagging higher reinsurance costs next year.

The insurance giant expects natural hazard claims to hit about $2.02 billion for the 2026 financial year, above its $1.77b allowance.

Even with the higher claims bill, Suncorp said its core insurance business was still expected to hit the top end of its 10 to 12 per cent profit target.

Still, it didn’t impress investors, with the company tumbling 3.7 per cent on the day’s trading despite the ASX rising overall.

The biggest losses were outside Western Australia, including a $350m south-east Queensland hail event, $234m from eastern states severe thunderstorms, and $135m from spring storms and hail in south-east Queensland.

The only listed event that appears to include WA was a June item called “Southern and Western States Winter Storms”, put at about $50m. The company did not say how much of that loss came from WA.

Suncorp did not announce premium rises, but acting chief executive Jeremy Robson – who is set to return to his chief financial officer role with Steve Johnston returning - said reinsurance remained “an important input to insurance pricing”.

Reinsurance is the cover insurers buy for themselves to protect against major claims shocks.

The Brisbane-based group has locked in its 2027 reinsurance program, with its main catastrophe cover applying to home, motor and commercial property portfolios across Australia and New Zealand.

That cover protects Suncorp against losses between $500m and $6.4b, meaning the insurer carries the first large slice of claims before reinsurers help absorb bigger disaster costs.

The group has also struck a five-year aggregate reinsurance deal, giving it $800m of annual protection and up to $2.4b across the period.

Unlike cover aimed at one major catastrophe, aggregate reinsurance helps when repeated weather events add up across the year.

“It is pleasing to see improved market conditions reflected in the pricing of our comprehensive main catastrophe program, now complemented by the addition of aggregate protection to further enhance resilience and reduce volatility,” Mr Robson said.