AUSTRALIAN insurer Suncorp Group reported a 30 per cent rise in its first-half cash earnings on Wednesday, beating consensus estimates, as favourable weather conditions led to lower natural hazard costs and underlying margins remained supported.
Suncorp said it had a “robust” capital position with capacity for further capital management initiatives, most likely on-market buybacks.
The insurer said it would return the net proceeds of A$4.1 billion (S$3.5 billion), which it earned from the sale of its banking arm to ANZ Group, to its shareholders through a capital return of A$3 per share and a special dividend of 22 Australian cents per share.
The capital return will be accompanied by a share consolidation, it added.
Suncorp’s cash earnings were A$860 million for the six months ended Dec 31, higher than the A$660 million posted a year earlier, beating the Visible Alpha consensus estimate of A$775.1 million.
The company said the gross written premium in the general insurance business rose 8.9 per cent and the total cost of natural hazard events came in at A$503 million, A$277 million below its allowance for the first half due to relatively benign weather conditions.
The insurer added it expects its full-year 2025 underlying margins to remain towards the top of the 10 per cent to 12 per cent range and reiterated its forecast for gross written premium growth in the mid to high single digits for the financial year 2025.
“Increases in customers’ premiums are now moderating, with home construction and car repair costs showing signs of stabilisation, margins approaching or within our target ranges and reinsurance markets remaining constructive,” Suncorp said.
The company declared an interim dividend of 41 Australian cents per share, compared with 34 cents declared last year. REUTERS
Share with us your feedback on BT’s products and services
