Suncorp faces natural hazard claims of $253 million above expectations, according to its general insurance update.

Claims of $714 million for the 10 months to April 30 exceed the insurer’s natural hazard allowance of $461 million by 55%.

Last year’s Melbourne Christmas Day hailstorm had the biggest impact, costing $250 million, while the February floods in southwest Queensland and northern NSW cost $76 million.

Even though natural hazard claims have been above allowances, Suncorp says the underlying performance of its general insurance operations has improved ahead of expectations.

Positive premium growth has gained momentum and motor and home portfolios have returned to unit growth, the insurer says.

Suncorp has reviewed its general insurance investment strategy and adjusted its portfolio from 100% investment grade credit to 78% investment grade credit, 2% cash, 10% Australian equities and 10% international equities.

It has also hedged currency exposure.