Suncorp Group (SUN) investor relations material

Executive summary

• Net profit and cash earnings fell to AUD 270 million, down 76% from the prior period, mainly due to elevated natural hazard costs from nine major events and negative bond portfolio movements.

• Interim fully franked dividend of AUD 0.17 per share declared, with a payout ratio of 68%.

• Strong growth in Consumer portfolio, especially in Motor and Home, with underlying insurance result and margins at the top end of the target range.

• Buyback of AUD 168 million completed, targeting AUD 400 million by FY 2026.

• Strategic digital and AI initiatives are progressing, expected to deliver material value and efficiency.

Financial highlights

• Net cost of natural hazard claims reached AUD 1.32 billion, exceeding the half-year allowance by AUD 153 million, with 71,000 claims mainly from hail, rain, and wind events.

• Investment portfolio yield is at 5%, with net investment returns down to AUD 259 million from AUD 374 million year-over-year.

• Underlying insurance trading ratio (UITR/ITR) at 11.7%, in the top half of the 10%-12% target range.

• Operating expense ratio improved to 18.0% from 18.4% in 1H25, reflecting ongoing cost control.

• Insurance revenue was AUD 7,656 million, up from AUD 7,509 million year-over-year.

Outlook and guidance

• GWP growth for the full year expected at the bottom of the mid-single digit range (4%), with commercial cycle headwinds.

• Underlying ITR/UITR expected to remain in the top half of the 10%-12% range, supported by premium rate increases.

• Operating expense ratio targeted at approximately 25%, with increased allocation to growth initiatives.

• Buyback to resume post-results, aiming for AUD 400 million in FY 2026.

• No material or unusual events have arisen since the end of the half-year that would significantly affect future operations.