Robust reinsurance will protect Australian insurers from ratings impacts following Cyclone Debbie last week, according to S&P Global.

The ratings agency says it expects this, along with “generally strong capital levels”, to offset any negative affects.

While gross claims are expected to be high, net claims are expected to be manageable, and below those from Cyclone Yasi in 2011, which cost insurers about $1.4 billion.

“Rated insurers operating in Australia have low retention of natural catastrophe claims relative to their capital base and high levels of coverage from panels of reinsurers of strong creditworthiness,” S&P says.

A+ and stable-rated Suncorp is the most exposed insurer due to its concentration of business in Queensland, but its catastrophe and aggregate reinsurance mitigates any claims.

IAG, rated AA- and stable, has less exposure in northern Queensland and net claims are unlikely to alter S&P’s view of its very strong capital position.

S&P does not expect QBE’s credit rating of A+ and positive to be affected due to its reinsurance and “strong capital adequacy”.

Allianz Australia, Chubb Australia and AIG Australia have relatively small retentions of catastrophe risk and could turn to their strong parent companies if help is needed.