The Suncorp Group Ltd (ASX:SUN) share price is in focus today after the insurer posted a net profit after tax (NPAT) of $1,027 million for FY26. Management also declared a fully franked final dividend of 52 cents per share and a 10 cent special dividend, with cash earnings reaching $1,042 million.
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What did Suncorp Group report?
- Net profit after tax: $1,027 million (down from $1,823 million in FY25)
- Cash earnings: $1,042 million (FY25: $1,452 million)
- Gross written premium: $15,407 million, up 2.7%
- Fully franked final dividend of 52 cents per share; special dividend of 10 cents per share
- On-market share buy-back of up to $250 million planned for FY27
- Common Equity Tier 1 (CET1) at $518 million above the mid-point of the target range after dividends
What else do investors need to know?
Suncorp's result came amid elevated natural hazard costs, with $2,024 million spent after responding to 18 significant weather events and more than 120,000 natural hazard claims. Natural hazard costs were $254 million above the Group's allowance for the year.
Operationally, the business continued its strategic pivot following the sale of the Suncorp Bank, using proceeds to strengthen its insurance arm. Investments included technology, artificial intelligence, and digital programs aimed at boosting customer experience and claims efficiency.
Suncorp also reported positive momentum in Consumer Insurance, with gross written premium up 5.8% as pricing strategies kicked in. The Commercial and Personal Injury division saw underlying margin improvement and stable growth, despite softer commercial market conditions.
What did Suncorp Group management say?
Commenting on the release, Suncorp's CEO, Steve Johnston, said:
This result demonstrates that a well-run insurance company can deliver for both customers and shareholders. Going forward, Suncorp will have significant financial protection from a multi-year aggregate reinsurance cover which came into effect on 30 June. The aggregate cover is an important component for Suncorp post the bank sale, significantly reducing natural hazard risk and earnings volatility.
What's next for Suncorp Group?
Looking ahead to FY27, Suncorp expects gross written premium growth of 3% to 5%, especially in Consumer and Personal Injury portfolios as it continues price responses to inflation. Underlying insurance trading ratio is forecast in the upper half of the 10%–12% target.
The business will keep investing in digital tools and is targeting to complete a further share buy-back of up to $250 million by the end of FY27. Suncorp aims for a sustainable return on equity above its through-the-cycle cost, supported by ongoing capital management and a focus on shareholder returns.
Suncorp Group share price snapshot
The Suncorp Group share price has been out of form over the past 12 months, falling around 7.5%. This compares to a 4.2% gain from the S&P/ASX 200 index (ASX: XJO).
