AA Insurance, which is owned by Suncorp Group (ASX:SUN), informed Buller District Mayor Chris Russell at the end of 2025 that it will stop offering new business, home, and landlord insurance policies for properties in the Westport, Carters Beach, and Cape Foulwind areas in New Zealand because of flood risk, Radio New Zealand (RNZ) reported on Thursday.

It said existing policies would stay in place, and a transfer policy was put in place for the sale and purchase of houses insured with the firm.

The decision reflects the "elevated natural hazard risk of flooding in the area," AA Insurance head of underwriting Dee Naidu said in a statement. Naidu added that if Westport's flood exposure dropped below its maximum exposure limit in the future, the company intended to reopen its books to new customers.

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