The Insurance Australia Group Ltd (ASX: IAG) share price is sliding on Monday, down 3.74% in early afternoon trade.
The S&P/ASX 200 Index (ASX: XJO) insurance stock closed on Friday trading for $5.08 per share and is currently trading for $4.89.
This comes as IAG cautioned that the financial impact of the storms and floods in and around Auckland, New Zealand is expected to rise as more impacted customers file additional claims.
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What did the insurance company report?
The insurance giant operates the AMI, State and NZI brands in New Zealand.
And the IAG share price is under pressure after the company reported that, as of early this morning, it had already received more than 5,000 claims across the three brands. A number it said would likely increase as the event is still unfolding.
IAG's CEO Nick Hawkins highlighted the company's priority is the impacted customers.
"The tragic loss of life and the vision of the damage to Auckland is devastating," he said. "Our Major Event Response team has been supporting customers since Friday night with temporary accommodation and other emergency support."
With the full financial impact still unknown, IAG said it may need to review its estimate for natural peril costs for the 2023 financial year (FY23).
A combination of reinsurance arrangements leaves IAG with a maximum event retention cost of $236 million.
"We have a large team ready to help people with their claims and we will have our assessors on the ground in affected areas as soon as it is safe to do so," Hawkins added.
IAG share price snapshot
Despite today's retrace, the IAG share price remains up 3% in 2023.
And, as you can see in the chart below, IAG shares are up 15% over the past 12 months. That handily outpaces the 7% full-year gains posted by the ASX 200.
