Suncorp Group (SUN) H2 2025 earnings summary

Executive summary

• Net profit after tax rose 52.3% to AUD 1.823 billion, driven by one-off gains from the sale of Suncorp Bank and New Zealand Life, strong investment returns, and favorable natural hazard experience.

• Cash earnings increased 8.3% to AUD 1.486 billion, reflecting core business performance excluding one-offs.

• Completed transformation to a pure-play general insurer after divesting Suncorp Bank and New Zealand Life, generating a $351m profit on sale.

• Total shareholder return reached 33.3%, supported by improved return on capital and strong distributions.

• Full year dividend of 90 cps and a $400m share buy-back announced.

Financial highlights

• Gross written premium (GWP) grew across all major segments: Home up 9.4%, Motor up 7.4%, Commercial up 7.3%, New Zealand up 6.3%.

• Net investment returns increased to $766m from $661m year-over-year.

• Underlying insurance trading ratio (UITR/ITR) improved to 11.9% from 11.1% year-over-year.

• Total expense ratio reduced by 100 bps to 18.6%.

• Net incurred claims rose 8.6% to $9,251m, driven by claims inflation and natural hazards.

Outlook and guidance

• GWP growth expected in mid-single digits as pricing moderates with easing inflation.

• Underlying ITR/UITR expected in the top half of the 10%-12% range, supported by premium earn-through and improved reinsurance conditions.

• Operating expense ratio to remain broadly in line with FY25.

• Buyback facility of AUD 400 million to proceed through FY26, with potential continuation into FY27.

• Capital excess to be returned to shareholders via ongoing buybacks and dividends.