Insurance Australia Group expects to incur a cost of between $60 million and $80 million from claims related to the storms that have ravaged the east coast.
The company behind the NRMA Insurance, Coles Insurance, CGU Insurance and WFI Insurance brands said it has received about 10,000 claims related to the severe weather that has hit Queensland, NSW, Victoria and Tasmania.
The size of the expected pre-tax payout expense is still far below that experienced after major storms in NSW in April 2015, which came at cost of $250 million to IAG.
IAG's natural disaster claims cost surpassed $1 billion in the 2014/15 financial year, and it says net claims in the current year should be considerably lower, around its allowance of $600 million.
Investors welcomed the update, sending IAG shares up seven cents, or 1.2 per cent, to $5.80.
Fellow insurer Suncorp Group, which operates AAMI, is yet to provide an update on its claims experience.
