CBA results hit by bushfire, hailstorm claims
Some $112 million in insurance claims stemming from bushfires and Queensland hailstorms dented earnings at the Commonwealth Bank of Australia (CBA) in the last half of 2019.
Insurance income more than halved from a year earlier to $32 million.
Insurance claims related to bushfires came to $83 million, the bank says while claims from the Queensland hailstorm have reached $29 million.
“This is based on claims received and an estimate of incurred but not reported claims, predominantly relating to building and contents insurance,” CBA says in a statement to the Australian Stock Exchange.
The bank has also revealed a $100 million loan impairment overlay for both bushfire and drought.
Overall profit at the lender, which grew its share of Australia’s home loan market to a quarter and beat analyst expectations, slipped 4% to $4.5 billion for the six months to December 31.