The Suncorp Group Ltd (ASX: SUN) share price is in focus after reporting a strong FY25, buoyed by significant profits from divestments and higher investment returns, with net profit after tax reaching $1,823 million.
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What did Suncorp Group report?
- Net profit after tax (NPAT) of $1,823 million (up from $1,197 million in FY24), including gains from selling Suncorp Bank and New Zealand Life
- Cash earnings of $1,486 million (up from $1,372 million)
- Gross written premium rose to $15,009 million (up from $14,121 million)
- Final fully franked dividend of 49 cents per share, with full year dividends at 90 cents per share
- Capital return of $3.00 per share and special dividend of 22 cents per share paid in March 2025
- On-market buy-back of up to $400 million to commence in September 2025
What else happened in FY25?
Suncorp completed its simplification journey, selling Suncorp Bank and New Zealand Life, making it a pure-play general insurer. The company managed 17 declared weather events and over 120,000 natural hazard claims, with total natural hazard costs $205 million below the allowance.
Investment in technology continued, including digital claims tools and a new policy system in New Zealand, helping improve customer experience. Suncorp paid out $9.8 billion in claims and reported a Net Promoter Score of +9.1, up on last year.
What did Suncorp Group management say?
Commenting on the result, CEO Steve Johnston said:
Our strong set of results delivered this year included the one-off profits on the sale of Suncorp Bank and New Zealand Life, significantly higher investment returns and weather costs across Australia and New Zealand that were favourable to allowance by more than $200 million… Our disciplined approach to capital management and robust capital position has enabled us to announce an on-market buy-back of up to $400 million, commencing in September 2025 and continuing through to the end of FY26.
What's next for Suncorp Group?
Looking ahead to FY26, Suncorp expects gross written premium growth in the mid-single digits as pricing moderates with easing inflation. The underlying insurance trading ratio is expected to sit in the top half of its 10–12% target range, supported by the continued effect of higher premium rates and improved reinsurance conditions.
Management says the business will focus on digital transformation, customer outcomes, and disciplined capital management, including completing the $400 million share buy-back and sustaining a competitive dividend payout ratio.
Suncorp Group share price snapshot
The Suncorp Group share price is approximately flat over the past year, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 12%.
