Suncorp beat earnings estimates last fiscal year, driven by growth in investment returns and the sale of its bank and New Zealand life insurance businesses.
Net profit after tax was A$1.82 billion, up from $1.20 billion year-over-year. Cash earnings were $1.49 billion, rising from $1.37 billion and ahead of Visible Alpha estimates of $1.47 billion.
“Following the disciplined execution of our strategic and operational priorities, including the successful completion of our simplification journey with the sale of Suncorp Bank and New Zealand Life, Suncorp’s full focus as a pure-play general insurer is on improving the insurance products and services we offer our customers across Australia and New Zealand,” according to Suncorp CEO Steve Johnston.
“Our strong set of results delivered this year included the one-off profits on the sale of Suncorp Bank and New Zealand Life, significantly higher investment returns and weather costs across Australia and New Zealand that were favourable to allowance by more than $200 million.”
Suncorp Bank was acquired by ANZ in July 2024. The sale of New Zealand Life to Resolution Life closed in January.
The company’s gross written premium was $15.01 billion, growing from $14.12 billion.
Its net investment returns were $766 million, up from $661 million. The company credited this to positive mark-to-market movements caused by a decrease in risk-free rates.
Net incurred claims grew from $8.52 billion to $9.25 billion, with $9.8 billion claims paid. Its underlying insurance trading ratio rose from 11.1% to 11.9%.
Natural hazards costs were $1.36 billion, $205 million below its allowance for the year.
Net profit after tax grew across all segments. Consumer Insurance, its largest segment, also saw the greatest increase from $424 million to $686 million.
Suncorp also announced a share buyback of up to $400 million, and declared a final dividend of $0.49.
The company’s guidance for fiscal 2026 expects gross written premium growth in the mid-single digits.
Suncorp’s (ASX: SUN) share price closed at A$20.04, down from its previous close at $20.10. Its market capitalisation is $21.70 billion.
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