Financial services company Suncorp Group has reported an 89% surge in half year net profit after tax (NPAT) to A$1.1 billion.
The result includes a $252 million one-off gain on the sale of Suncorp Bank for $4.9 billion to ANZ Group Holdings on 31 July 2024.
Suncorp said other factors that supported the result include a favourable natural hazard experience for its insurance business, positive investment returns and the nonrecurrence of prior year reserve strengthening.
Cash earnings, which exclude the gain on the sale of Suncorp Bank and other non-cash items, increased 30% to $860 million in the six months to 31 December 2024.
A fully franked special dividend of 22 cents per share, associated with the sale, will be paid with the interim ordinary dividend of 41 cents per share on 14 March to shareholders on record on 18 February.
Shareholders will also receive $3.00 per share as the first tranche of the return of capital from the bank sale on 5 March.
CEO Steve Johnston said the results reflected discipline in executing strategic and operational priorities.
“We have delivered to our commitments, we are financially strong and resilient, and we have created future capacity to invest in initiatives to support our customers,” Johnston said in a media statement.
Suncorp said the cost of natural hazards in the first half was $503 million, $277 million below the company’s allowance, as it benefited from a benign natural hazard period in Australia and New Zealand.
The underlying general insurance trading ratio (UITR) of 11.8% and growth in gross written premium of 8.9% were in line with guidance.
Gross written premium in the general insurance business increased 8.9% due to unit growth and the pricing response to claims inflation and a higher natural hazards allowance, while net investment income dropped 6% to $374 million, supported by high underlying yields on the interest-earning portfolio and strong equity markets.
Suncorp (ASX:SUN) shares closed on Tuesday at $20.35, capitalising the company at $20.29 billion.
