Highlights

• Cash Earnings for FY26 came in at $1,042 million, compared with $1,452 million in the prior year.

• Natural hazard costs reached $2,024 million, exceeding the $1,770 million allowance across 32 weather events in Australia and New Zealand.

• Gross Written Premium rose 2.7% to $15,407 million, while the underlying insurance trading ratio held at 11.8%.

• Shareholders get a 52 cent final Dividend and 10 cent special, with a buy-back of up to $250 million planned.

A natural hazard bill of $2,024 million blew through its $1,770 million allowance, yet Suncorp Group Limited (ASX:SUN) still lifted underlying earnings, declared a Special Dividend and lined up another buy-back. The insurer reported FY26 cash earnings of $1,042 million for the year to 30 June 2026, down from $1,452 million. Shares were trading at A$20.39 on 23 October 2026, down 0.15%.

When the Weather Turned Expensive

The year was punishing. Suncorp responded to 32 weather events across Australia and New Zealand, 18 of them declared events costing more than $10 million each, and handled more than 120,000 natural hazard claims. Natural hazard costs totalled $2,024 million, up from $1,355 million in FY25 and $254 million above the allowance.

Net incurred claims rose to $10,244 million from $9,251 million. Net Investment returns slipped to $553 million from $766 million. Net profit after tax was $1,027 million, against $1,823 million in FY25, a year that included gains from the sales of Suncorp Bank and New Zealand Life.

Premiums Grow, Margins Hold

Underneath the storm costs, the core engine kept running. Gross written premium increased 2.7% to $15,407 million. The underlying insurance trading result climbed to $1,636 million from $1,566 million, and the underlying insurance trading ratio was 11.8%, close to the upper end of the 10% to 12% target range. The total expense ratio improved to 18.1% from 18.6%.

Consumer Insurance led the way. Its trading result rose to $763 million and its premiums grew 5.8% to $8,491 million. Commercial and Personal Injury delivered a $451 million trading result with premiums up 4.5%. Suncorp New Zealand earned an NZ$471 million trading result, although its premiums fell 4.8% to NZ$2,756 million.

Cash Back to Shareholders

Shareholders received more than the headline earnings drop might suggest. The final ordinary dividend is 52 cents per share, fully franked, with a fully franked special dividend of 10 cents alongside it, both payable on 22 September 2026. Ordinary Dividends for the year totalled 69 cents per share, a payout of 70.5% of cash earnings.

The company completed a $400 million buy-back in FY26 and plans to buy back up to $250 million on market in FY27. After the final dividend, its Common Equity Tier 1 position sat $518 million above the mid-point of the target range.

What Suncorp Is Targeting for FY27

A multi-year aggregate Reinsurance cover took effect on 30 June 2026. Together with the rest of the FY27 program, it is expected to limit natural hazard downside to $50 million in 90% of scenarios. The FY27 natural hazard allowance rises to $1.8 billion.

Management is guiding to gross written premium growth of 3% to 5% and an underlying insurance trading ratio in the top half of the 10% to 12% range, including the aggregate cover premium. It expects a total expense ratio broadly in line with FY26 and a Payout Ratio around the mid-point of the 60% to 80% range of cash earnings. The buy-back is targeted for completion by the end of FY27.

Chief executive Steve Johnston said the company would use recent investment in platforms, data and artificial intelligence to improve claims management and reshape how insurance is made and sold.