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Highlights

  • In FY25, SUN's net profit after tax rose to AUD 1,823 million, up from AUD 1,197 million in FY24.
  • Gross written premium increased to AUD 15,009 million in FY25, reflecting pricing adjustments to claims inflation.
  • FY26 outlook includes mid-single digit GWP growth and an underlying ITR in the top half of the 10%–12% range.

Suncorp Group (ASX: SUN) has announced its financial results for the year ended 30 June 2025, reporting a net profit after tax (NPAT) of AUD 1,823 million, an increase from AUD 1,197 million in the prior year. Cash earnings were AUD 1,486 million compared to AUD 1,372 million in FY24.

The NPAT result included a one-off gain of AUD 252 million from the sale of Suncorp Bank and AUD 99 million from New Zealand Life. It was also supported by favourable natural hazard experience, which came in AUD 205 million below the allowance, and positive net investment income of AUD 766 million.

Revenue and Premium Growth

Gross written premium (GWP) reached AUD 15,009 million, up from AUD 14,121 million in FY24. The increase reflected pricing actions in response to claims inflation and a higher natural hazards allowance. Growth moderated in the second half of the year as inflationary pressures eased and competitive activity increased in some portfolios.

Net incurred claims rose 8.6% to AUD 9,251 million, driven by working claims inflation and natural hazard events, partly offset by the absence of prior year reserve strains. Claims inflation moderated in certain portfolios, including New Zealand and Motor, as repair capacity improved.

Operating Performance

The underlying insurance trading ratio (UITR) was 11.9%, compared to 11.1% in FY24, in line with guidance. This improvement was largely due to the earn-through of prior pricing increases, partially offset by a lower underlying investment yield. Net investment income rose to AUD 766 million from AUD 661 million, supported by mark-to-market gains as risk-free rates fell late in the year.

General Insurance operating expenses increased to AUD 1,751 million from AUD 1,635 million, reflecting investments in business growth initiatives such as platform modernisation and operational transformation. The General Insurance total expense ratio decreased from 19.6% to 18.6% due to revenue growth and cost management.

Natural Hazards and Capital Position

Natural hazard costs totalled AUD 1,355 million, AUD 205 million below the allowance. Suncorp responded to 17 major weather events and over 120,000 claims, including those under the Cyclone Reinsurance Pool. For FY26, the natural hazard allowance has been set at AUD 1,770 million, reflecting unit growth, inflation, and additional resilience measures.

The Group’s Common Equity Tier 1 (CET1) capital was AUD 997 million above the midpoint of the target range. After accounting for the planned AUD 400 million on-market share buy-back to commence in September 2025, pro forma CET1 will be AUD 597 million above the midpoint.

Shareholder Returns and Outlook

Suncorp declared fully franked ordinary dividends totalling 90 cents per share for FY25, representing a payout ratio of 70.8% of cash earnings. The final dividend of 49 cents per share will be paid on 24 September 2025.

For FY26, GWP growth is expected in the mid-single digits, with the UITR anticipated to be in the upper half of the 10%–12% range. Operating expense ratios are expected to remain broadly in line with FY25, with a greater allocation toward business growth. The Group remains committed to active capital management, targeting a payout ratio in the mid-point of the 60%–80% range of cash earnings, weighted toward the second half of the year.