Properties south of Gympie resembled snowfields after a super cell dumped hail, tore down trees and caused devastation across the region in October. Photo: Lachie Millard
Properties south of Gympie resembled snowfields after a super cell dumped hail, tore down trees and caused devastation across the region in October. Photo: Lachie Millard

IAG flags earnings hit after hailstorms

Insurance Australia Group has told its shareholders the hailstorms that pounded Canberra, Melbourne and Sydney will hit its earnings.

The insurer has received more than 28,000 claims of home and vehicle damage from the hailstorms this week and now expects them to result in a pre-tax cost of $169 million.

IAG expects insurance margin guidance in the range of 14.5 per cent -16.5 per cent, compared with the previously advised 16 per cent -18 per cent.

IAG has brands including CGU and NRMA.

The insurer's first half results are due on February 12.