Suncorp Group Ltd (ASX: SUN) share price is in the red in early trade on Monday after the insurer released its FY22 results. At the time of writing, Suncorp shares are trading 3.26% lower at $11.27 apiece.
It was a mixed set of results for Suncorp, with revenue increasing 14% year on year whilst natural hazards played havoc on the company's bottom line.
Meanwhile, it also saw headwinds from volatility in the financial markets this year, resulting in a $190 million loss in its investment markets division, down from $453 million the prior year.
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What's next for Suncorp?
The company also recognised a 34% decrease in net profit after tax (NPAT) to $681 million. Chiefly, this reflects natural hazard (insurance-related) costs and volatile financial markets.
For instance, 35 separate weather events during the year resulted in a $101 million blowout to the group's provision for natural hazards.
Suncorp also declared a 17 cents per share final dividend – well below the 46 cents that consensus analyst estimates had forecast.
It wasn't all bad news, though. As The Motley Fool reported earlier today: "…as the company holds its fixed interest investments to maturity, the majority of these FY 2022 accounting losses are expected to unwind to profit over the coming periods."
Suncorp also reiterated its FY23 earnings targets and forecasts a cost-to-income ratio of approximately 50% by the end of next financial year.
Despite this, investors seem less than impressed following the update and have pushed the share more than 3% lower from the open today.
The Suncorp share price now trades back in line with key support ranges formed since June, as seen on the chart below. Returns against the S&P/ASX 200 Financials Index (ASX: XFJ) this year to date are plotted as well.
Suncorp shares are down around 5% for the last 12 months, although they have pushed back 2% into the green this year to date.
