Why is the Suncorp share price failing to shine today?

Suncorp has underperformed this year.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • Suncorp shares have slid 2 percentage points down in today's session 
  • The share has been plagued by natural disasters this year, although not without its fair share of criticism 
  • The Suncorp share price has lost more than 16% over the past year to date 

It's been a year of extremes in 2022, ranging from market turbulence to natural disasters none of us could pick.

For the Suncorp Group Ltd (ASX: SUN) share price, along with other insurers, the latter has been weighing in on pricing distribution this year to date.

A man wearing a suit and holding a colourful umbrella over his head purses his lips as though he has just found out some interesting news.

Image source: Getty Images

What's up with the Suncorp share price?

There's been nothing market-sensitive out of Suncorp's corner today, or this week.

However recent data compiled by NRMA Insurance illustrates that 26,515 claims were filed nationally in the last period.

The numbers make "it the worst winter for damage to homes and vehicles since 2016," The Australian reports.

The higher perils and claims costs were attributed to the colossal flooding experienced earlier this year, however, other natural disasters were at fault as well.

And it doesn't look to be letting off either.

The Bureau of Meteorology has suggested we can expect a 3rd La Nina weather pattern to remain in situ over spring and summer, says The Australian.

This is characterised by higher levels of rainfall, alongside strong winds and other wild weather, that is uncharacteristic of an Australian summer.

What this means for Suncorp looking ahead, is anyone's guess. You can't predict the weather, right?

Still, almost 62% of all home claims and approximately 25% of automotive claims stemmed back to wild weather last period, each up substantially year on year, NRMA said.

Following the floods of the Hawkesbury–Nepean river and mid-north coast this year, the Federal Government announced a reinsurance pool for cyclones and related flood damage in Northern Australia.

Suncorp says it will continue working with the government on this.

In the meantime, the Suncorp share price has lost more than 16% over the past year to date.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Financial Shares

Four business people wearing formal business suits and ties walk abreast on a wide paved surface with their long shadows falling on the ground ahead of them.
Financial Shares

ANZ shares: Profit jumps in 2026 half-year earnings

ANZ’s 2026 half-year earnings show big profit growth and a steady dividend, as the bank focuses on transformation and Suncorp…

Read more »

CEO leading a board meeting.
Financial Shares

ASX shares climb after CEO news. Here's what investors are watching

ASX appoints interim CEO as shares push higher in Thursday trade.

Read more »

ASX share price on watch represented by woman investor looking at ASX financial results on laptop
Financial Shares

BSP Financial Group Q1 2026 earnings: Profit and revenue climb as bank continues investment

BSP Financial Group delivered strong Q1 earnings growth and robust capital amid ongoing investment and regional developments.

Read more »

Sell buy and hold on a digital screen with a man pointing at the sell square.
Broker Notes

Macquarie shares: Buy, hold or sell?

Two top analysts offer their outlook for Macquarie’s outperforming shares.

Read more »

a group of three cybersecurity experts stand with satisfied looks on their faces with one holding a laptop computer while he group stands in front of a large bank of computers and electronic equipment.
Financial Shares

Generation Development Group reports cyber incident

Generation Development Group shares are in focus after its Generation Life subsidiary quickly contained a cyber incident with no evidence…

Read more »

A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.
Financial Shares

Morgans sees 2x upside in ASX finance stock after hitting key milestone

This company delivered a strong set of quarterly numbers.

Read more »

a couple consider the advice from a man with documents laid out on a table and the man holding a tablet in his hand.
Financial Shares

3 ASX 200 financial shares to sell: experts

ASX 200 financial shares are down 2.5% over six months and up 2.1% in 2026-to-date.

Read more »

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer
Financial Shares

Perpetual shares slip after update. But there's more going on beneath the surface

Perpetual shares ease after an update shows mixed numbers across key divisions.

Read more »