Suncorp flags lower investment income, natural hazards costs blowout
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The news: Insurance group Suncorp says investment income will be lower in FY26 compared to a year earlier and has flagged that natural hazards costs will be $250 million above its annual allowance.
The numbers: Suncorp said total investment income is expected to be between $750 million and $800 million, down from $1.23 billion in FY25.
The company said the decline was driven by rising bond yields resulting in mark-to-market losses in both insurance funds and shareholders’ funds.
Meanwhile, natural hazard costs are expected to be $250 million above Suncorp’s FY26 allowance of $1.77 billion. It said there were 18 separate events above $10 million during the year.
Elsewhere, Suncorp said it expected its full-year underlying insurance trading ratio to be “towards the upper end” of its 10%-12% guidance range.
The group’s gross written premium is expected to be 2.7%. The company said it was impacted by an ongoing weak economy, a soft commercial market in New Zealand and a marginal reduction in demand in Australia.
The source: ASX
