Despite natural hazard costs rising sharply to AU$1.319 billion in H1 2026, from AU$503 million a year earlier, Suncorp said its underlying business “remains resilient”, and its capital position continues to be strong.
“While Suncorp’s H126 reported profits and shareholder returns have been challenged by an elevated level of natural hazard costs and lower investment returns over the half, our underlying business remains resilient as we continue to deliver on our strategic imperatives and drive good momentum leading into the second half of the financial year,” Suncorp CEO Steve Johnston said.
The firm’s profit after tax in H1 2026 was AU$263 million, down from AU$1.1 billion in the same period of the previous year.
Meanwhile, net investment returns in the period were AU$259 million, down from AU$374 million in H1 2025.
Still, Suncorp’s gross written premiums for H1 2026 expanded to AU$7.689 billion from AU$7.487 billion in H1 2025.
Johnston explained, “Suncorp dealt with nine declared natural hazard events through the half, resulting in more than 71,000 claims at a net cost of around $1.3 billion.
“The destructive thunderstorms and widespread hailstorms that hit the east coast of Australia, particularly south-east Queensland through October and November, contributed to the majority of claims received over the half, with the giant hailstorm event in November likely to be among our costliest in recent history.
“Despite this, the business continues to perform strongly, reflected in the solid growth of our Consumer business, and our underlying insurance trading ratio, which has remained towards the top half of our target operating range at 11.7%.”
Looking at Suncorp’s divisional performance in H1 2026, the Consumer Insurance business recorded a trading loss of AU$137 million, driven primarily by elevated natural hazard costs during the half.
The result was also affected by lower investment returns, although this was partly offset by pricing earn-through in response to a higher natural hazards allowance and ongoing claims inflation. Gross written premiums in the division rose to AU$4.229 billion.
In Commercial & Personal Injury Insurance, the insurance trading result was AU$204 million in H1 2026, with gross written premiums of AU$2.203 billion.
Meanwhile, Suncorp’s New Zealand segment delivered an insurance trading result of NZ$290 million, alongside gross written premiums of NZ$1.412 billion.
Johnston concluded, “Our balance sheet and capital position remain strong and the Board has determined to pay a fully franked interim ordinary dividend of 17 cents per share, representing 68% of cash earnings.
“Our disciplined approach to capital management has enabled us to complete $168 million of our on-market share buy-back program, which began in September. We continue to target around $400 million through this program by the end of FY26.
“Looking ahead, GWP growth is expected to be around the bottom of the mid-single digits range given the current cycle in Commercial in Australia and New Zealand, while underlying ITR is expected to remain in the top half of the 10% to 12% range.”
