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.

• Underlying insurance trading result (ITR) increased 20% to AUD 1.566 billion, with margin at 11.9%.

• Cash earnings were AUD 1.486 billion, up 8.3% year-over-year, reflecting core business performance excluding one-offs.

• Final ordinary dividend of AUD 0.49 per share, full year AUD 0.90 per share, and a new AUD 400 million buyback announced.

• Over AUD 4.1 billion of capital returned to shareholders from the bank sale.

Financial highlights

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

• Net investment returns increased to AUD 766 million from AUD 661 million year-over-year.

• Natural hazard costs were AUD 1.355 billion, AUD 205 million below allowance.

• Total expense ratio reduced by 100 bps to 18.6% due to technology-driven efficiencies.

• Total shareholder return for the year was 33.3%.

Outlook and guidance

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

• Underlying ITR expected in the top half of the 10%-12% range, inclusive of a higher natural hazard allowance.

• Operating expense ratio to remain broadly in line with FY 2025, with more allocation to growth initiatives.

• Buyback facility of AUD 400 million to proceed through FY 2026, with potential continuation into FY 2027.

• Capital excess to be returned to shareholders via ongoing buybacks, with payout ratio at the midpoint of 60–80%.