Suncorp Group (ASX:SUN) Posts 43% Profit Jump in FY25, Mid-Single Digit GWP Growth Expected in FY26

Sonal Goyal

18 August 2025 06:19 PM AEST

Suncorp Group (ASX:SUN) Posts 43% Profit Jump in FY25, Mid-Single Digit GWP Growth Expected in FY26

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Highlights

SUN's Gross Written Premium rose 6.3% YoY to AUD 15.0 billion in FY25.

Profit before tax jumped 42.9% YoY to AUD 2.18 billion in FY25 and cash earnings increased 8.3% YoY to AUD 1.49 billion.

The company declared AUD 0.49 per share dividend and launched an AUD 400m buy-back program.

SUN reaffirmed a payout ratio of 60–80% of cash earnings plus share buy-back.

Suncorp Group Limited (ASX:SUN), a leading Trans-Tasman insurer with a history spanning more than a century, provides general insurance services and products to clients across New Zealand and Australia. In the year ended 30 June 2025 (FY25), Suncorp posted a Gross Written Premium (GWP) of AUD 15.0 billion, representing a 6.3% YoY increase from FY24. FY25 performance was supported by higher premium volumes, and improved investment returns. The performance was also driven by one-off gains from the divestment of Suncorp Bank and NZ Life.

During the reported period, profits before tax rose sharply to AUD 2.18 billion, up 42.9% YoY. Total cash earnings reached AUD 1.49 billion, an 8.3% increase compared with the prior year.

Shareholder Returns: Dividend and Buy-Back

On 14 August 2025, the company declared a fully franked dividend of AUD 0.49 per share, payable on 24 September 2025. The Dividend Reinvestment Plan (DRP) remains available, with elections due by 21 August 2025.

In addition, the company announced an on-market share buy-back of up to AUD 400 million, commencing 26 September 2025 and running until 30 June 2026, to be executed via Barrenjoey Markets.

FY26 Outlook

Looking ahead, Suncorp expects mid-single digit GWP growth in FY26, supported by ongoing pricing momentum and easing inflationary pressures, though competitive dynamics may temper growth in certain portfolios.

The Underlying Insurance Trading Ratio (ITR) is anticipated to remain in the top half of the 10–12% range, aided by prior pricing initiatives and reinsurance benefits, even with a higher natural hazard allowance.

The operating expense ratio is anticipated to remain stable as the company continues to invest in growth initiatives, digital modernisation, and operational efficiency to deliver improved customer outcomes.

On capital management, Suncorp reaffirmed its disciplined approach, targeting a payout ratio of 60–80% of cash earnings alongside the AUD 400 million share buy-back.

Share performance of SUN

Suncorp shares rose 1.86% to close at AUD 21.40 per share on 18 August 2025. Over the past year, SUN’s share price has increased by 24.76%, while it is up 12.75% year-to-date. The stock advanced 9.52% over the past week, 3.73% over one month, and 4.18% over three months. The 52-week high of AUD 22.14 was recorded on 1 July 2025, while the 52-week low of AUD 16.65 was hit on 12 August 2024.

Support and Resistance Summary

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 18 August 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

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