Suncorp Group (SUN) investor relations material

Strategy and transformation

• Transformation has established a simplified, modern pure-play Trans-Tasman general insurer; focus is shifting to profitable growth, customer outcomes, operational performance and shareholder returns.

• Digital Insurer is modernizing policy administration, with AAMI release imminent; reusable cloud platforms and governed AI aim to enable faster product design, personalization and lower-cost service.

• Home and motor loss ratios are above peers, with a 3%-5% improvement opportunity through Home Repair, fraud detection, risk selection, pricing and claims-cost initiatives.

• Vero Specialty Lines has launched six products, including three in FY26; AA Insurance growth is supported by an AA network of 1 million members and insurance penetration of 34%-35%.

• AI is being applied across customer service, distribution and product design; 20% of customers in cited research said an LLM recommendation changed their intended purchase, and journeys may be twice as fast.

Markets and business priorities

• At 30 June 2026, market positions and GWP were Home 25% share and $3.4bn; Motor 27% and $5.1bn; Commercial and Personal Injury 9% and 27% share, respectively, with $4.5bn; New Zealand 25% and NZ$2.8bn.

• Growth drivers include housing and building-cost growth, EV adoption, vehicle values and repair-cost inflation, business formation, wage growth, regulatory opportunities and economic recovery.

• Consumer priorities include sustainable core and adjacent-market growth, better customer experience and simpler operations; Commercial and Personal Injury focus on portfolio quality, targeted growth and customer and claims outcomes, supported by around 30 risk engineers.

• New Zealand is completing a three-year pricing uplift using Earnix, updating peril models and invested platforms; priorities include market-share growth, broker service, disaster claims and AA customer experiences.

• Customer, Brand and Digital combines the customer lifecycle and 120 million annual digital interactions, using brands, customer insight, reusable digital journeys and AI-assisted distribution to support growth and loyalty.

Shareholder proposition and financial framework

• Investor priorities include GWP growth at or above system, competitive expense management, resilient margins, strong absolute and relative returns, and returning surplus capital; ordinary dividends are set at 60%-80% of cash earnings, with business needs expected around 20% through the cycle.

• Tangible book value per share had a five-year CAGR of 12.0%, versus 3.9% for Australian financials excluding banks and 1.6% for major European insurers; underlying margins were at the top of target range for the last five halves.

• Three-year annualized share-price return was 18.8%, with a Sharpe ratio of 0.69; the presentation also highlights lower relative risk-adjusted return volatility.

• Earnings growth is supported by profitable customer and system growth, business investment, capital management, loss-ratio initiatives, Vero Specialty Lines and broker connectivity.

• FY27 $250m buyback is underway.