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RACQ Insurance profit hit by Townsville floods

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RACQ Insurance reported earnings of $33.5 million in the year to June 30, down sharply from $64.3 million in the previous year as weather-related expenses more than doubled.

Total weather event costs were $115 million after reinsurance recoveries, up from $50.6 million the previous year, hiked by floods in Townsville over 10 days from late January, and the Gympie hailstorm.

RACQ Insurance paid more than $800 million in insurance claims to members throughout the year.

Revenue hit a record $1.46 billion, up 20% from a year earlier. Net assets rose 2.6% to $1.44 billion, according to financial statements lodged with the Australian Securities and Investments Commission (ASIC).

Membership of RACQ, which holds its annual meeting of shareholders on November 19, rose to 1.77 million from 1.72 million in 2018, including 1.6% growth in roadside assistance membership.

Outgoing CEO Ian Gillespie said he was delighted strong growth had occurred in the Roadside Assistance business, ensuring RACQ remains relevant in its core areas while it expands into new sectors.

Suncorp’s David Carter, currently CEO Banking and Wealth at Suncorp, takes over in the top role when Mr Gillespie departs at the end of December.

RACQ, founded in 1905, boasts members in more than 70% of Queensland homes.