Corporates
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| StockCo | Livestock, producers' financial position | Stock loss or negative impact to end producers. | This was mostly a coastal weather event and StockCo has few clients directly impacted. StockCo advises that there are no reported stock losses from any of their clients. Further, the company states that there was widespread heavy rainfall up to about 300km in land where StockCo has many clients. StockCo advises that such clients tend to grow good pastures off the back of large rain events which should create further demand for funding. |
| Mackay Sugar | Sugarcane, mills, rail network
| Damage to crops and infrastructure.
| Industry group Canegrowers has said initial surveys are indicating cane losses of up to 20% across the Mackay region ($81m). It will take time for growers and staff to visit every area to get a more accurate assessment. The harvest due to start in less than two months. Assessments are still underway along the cane train network and damage to tracks may affect the start date of the harvest for some growers. The mills and sugar terminals appear to have escaped serious damage according to Canegrowers.
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Infrastructure
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| Adani Abbot Point Terminal Pty Ltd | Adani Abbot Point Terminal | Loss of revenue due to force majeure event; property damage. | Terminal users must continue to pay the take-or-pay charges even if the terminal is not operating due to a force majeure event, the users declare force majeure or seek force majeure relief from the rail provider.
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| DBCT Finance Pty Ltd | Dalrymple Bay Coal Terminal | Loss of revenue due to force majeure event; property damage.
| Terminal users must continue to pay the take-or-pay charges even if the terminal is not operating due to a force majeure event.
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JEM (Southbank) Pty Limited
| Southbank Institute of Technology
| Property damage; revenue abatements negatively impacting cash flow and debt service coverage ratio (DSCR).
| No impact from Cyclone Debbie.
We note that there is a precedent, as shown in the 2011 flooding of the building. Insurance claims were settled in a reasonable timeframe (in relation to both property damage and loss of income). Payment deductions which the State of Queensland was entitled to make due to the force majeure event have been settled. Southbank did not need to utilize cash reserves, its liquidity position and its DSCRs were preserved.
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| SCT Logistics | Freight haulage | Revenue loss on the north-south corridor; negative impact to customers | No material impact to SCT Logistics due to Cyclone Debbie; although we note revenue is linked to volume hauled
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Insurance
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| The Insurance Council of Australia advised 3 April 2017 at 9 AM that 28,000 claims had been received with insurance losses around AUD306m following Tropical Cyclone Debbie and the NSW Floods. Both of these numbers are expected to increase materially over the next few weeks.
This level of catastrophe has not been seen since ex tropical cyclone Oswald in 2014, when storms and flooding affected large parts of Queensland and NSW and caused insurance losses of almost $1.2 billion.
Banks have mobilised dedicated Hardship Teams to assist customers who are experiencing financial difficulty in meeting their commitments, whether those commitments are in respect of a credit card, a personal/car loan or a home loan. They are also requesting clients with TDs who are experiencing financial difficulty to onctact them to see if they can get early access to the funds (i.e. avoid the 31 day notice period)
Insurers have initiated Catastrophe Management Plans and have additional team members ready to take calls and lodge claims. They are mobilising assessors, to ensure they can support customers as quickly as possible. Assessors however can't enter affected areas until emergency services declare it safe - so claims epxected to gain momentum over next week or two.
The Queensland Government has announced disaster assistance would be provided by the jointly funded Commonwealth-State Natural Disaster Relief and Recovery Arrangements.
In terms of context for Debbie doing Queensland and northern NSW, It is noteworthy that the 18th February hailstorm in Sydney resulted in more than 20,000 claims for IAG alone.
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| Insurance Australia Group | Insurance – Home/contents, auto and business disruption
| Undisclosed – but very well covered for reinsurance
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| Suncorp subsidiary, AAI | Insurance – Home/contents, auto and business disruption
| undisclosed – too early
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| Eric Insurance | Auto insurance | Undisclosed. Call scheduled |
| QBE | Business insurance, some auto and housing | Undisclosed |