Suncorp Group (SUN) H1 2026 earnings summary

Executive summary

• Profit after tax for 1H26 was $263 million, down sharply from the prior period, mainly due to elevated natural hazard costs from nine major events and lower investment returns.

• Over 71,000 claims were managed from natural hazard events, with net costs around $1.3 billion, primarily from hail, rain, and wind.

• Underlying insurance result and margins remained resilient, with strong unit and premium growth in Consumer, especially Motor and Home.

• Interim fully franked dividend of 17 cents per share declared, payout ratio at 68%; $168 million share buyback completed, targeting $400 million by FY26.

• Digital insurer and AI transformation initiatives are progressing, driving operational efficiency and customer engagement.

Financial highlights

• Gross written premium (GWP) rose 2.7% year-over-year to $7,689 million, led by Consumer growth; Consumer Home up 7.0%, Motor up 5.8%.

• Net investment returns fell to $259 million from $374 million, impacted by negative mark-to-market movements.

• Expense ratio improved to 18.0% from 18.4%, reflecting ongoing cost control and productivity.

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

• CET1 capital position $700 million above target midpoint.

Outlook and guidance

• GWP growth expected at the bottom of the mid-single digit range due to commercial cycle headwinds in Australia and NZ.

• Underlying ITR/UITR forecast to remain in the top half of the 10%-12% range.

• Expense ratio targeted about 50bps below FY25, with more spend on growth initiatives.

• On-market share buy-back to resume, targeting $400 million by FY26.

• Capital management focused on maintaining flexibility and optimizing shareholder returns.