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Natural disasters wreak havoc on CBA profits

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Profits from the Commonwealth Bank’s mortgage broking and general insurance division declined by a staggering 73% – or $81 million – compared to the 2018 financial year, the bank says.

Higher claims in the general insurance division from increased weather events, including the NSW hailstorm and Queensland floods, led to the $33 million profit.

General insurance income declined by $91 million – or 38% – in the last financial year compared to FY18.

However, lower claims in general insurance over the last half of the year drove an increase of $11 million compared to the first half of the financial year.