Suncorp Group Limited

Suncorp said FY26 cash earnings were $1.04 billion and NPAT was $1.03 billion. Underlying earnings increased 4.5%, and the underlying insurance trading ratio finished at 11.8%, at the top end of the 10% to 12% range. Gross written premium grew 2.7% reported, or 3.6% excluding FX, and the expense ratio improved by 50 basis points. Prior-year reserve releases were nearly $160 million, including AUD $50 million in New Zealand, while net natural hazard claims costs exceeded $2 billion and natural hazard costs were about $250 million above allowance. For capital returns, the company completed a $400 million on-market buyback in FY26, declared a fully franked final dividend of $0.52 per share, and announced a fully franked special dividend of $0.10 per share plus an on-market buyback of up to $250 million in FY27. Looking to FY27, management guided to GWP growth of 3% to 5%, underlying ITR in the top half of the 10% to 12% range, and a total operating expense ratio broadly in line with FY26.

Steve Johnston framed the year as proof that Suncorp can deliver for both shareholders and customers, emphasizing the benefits of simplification, investment in technology, and tighter business resilience. He highlighted the company’s shift into a new phase where it aims to leverage modern platforms, data, and AI to improve customer experiences, pricing, and distribution. His tone was confident and strategic, with repeated focus on long-term value creation, disciplined capital management, and a more scalable operating model.

Jeremy Robson emphasized the quality of the underlying result, pointing to 4.5% underlying earnings growth, an 11.8% underlying ITR, and a 50 basis point improvement in the expense ratio. He noted strong prior-year reserve releases of nearly $160 million, especially in Commercial & Personal Injury, and said the company still retains $162 million of CET1 above the midpoint of its target range after the announced capital returns. He also said FY27 should see a broadly flat operating expense ratio, continued investment in the business, and a 5-year aggregate reinsurance cover that materially reduces downside risk while keeping margin guidance in the top half of the range.

Analysts pressed management on weaker second-half unit growth in home and motor, and management said pricing was being set prospectively to stay ahead of inflation even if that means unit volumes can move around. On competition, management said the market has become more aggressive, especially in motor, but argued Suncorp’s multi-brand strategy, pricing discipline, and claims scale leave it well positioned. Questions also focused on the new aggregate reinsurance cover and future capital returns; management said special dividends remain possible in strong years, but buybacks remain the preferred form of return, and the new reinsurance structure should not materially change intercompany reinsurance arrangements.