A series of recent natural catastrophes is expected to materially affect Australian insurers’ earnings, according to AM Best.

Recent events include November’s Brisbane hailstorm, Cyclone Marcia in February and severe NSW storms in April.

“Some major insurers have already revised downward their forecasted profit margins,” the ratings agency says.

However, the industry will continue to be profitable thanks to most general insurers’ “robust reinsurance protection”.

AM Best says Australian insurers are used to natural catastrophes and are generally well prepared “as long as the frequency and severity do not materially exceed expectations”.

The country’s prudent regulatory standards and the industry’s substantial investment base also help insurers withstand such events, the report says.