Suncorp posts 52% leap in full-year profit after bank sale
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The news: Insurance group Suncorp reported a 52% jump in full-year net profit after tax to $1.823 billion, after taking combined one-off gains of $351 million on the sales of Suncorp Bank and New Zealand Life during the period.
This is up from last year's result of $1.197 billion and above average forecasts of $1.750 billion, according to Visible Alpha data.
The numbers: Suncorp's profit line was also boosted by net investment income of $766 million and natural hazard costs coming in $205 million below the company's annual allowance.
Gross written premium (GWP) was up 6.3% year on year, from $14.1 billion to $15 billion. Suncorp said topline growth reflected the company's pricing response to claims inflation and a higher natural hazards allowance.
The company's underlying insurance trading ratio was 11.9%, up from 11.1% in FY24, and at the top end of its 10-12% guidance range.
The board declared a final dividend of 49 cents per share, up from last year's payout of 44 cents, and above market estimates of 43 cents.
The context: Suncorp said its full-year result benefitted from the sales of its banking arm to ANZ and New Zealand life insurance business to Resolution Life during the period.
This company expects GWP growth to be in the "mid-single digits" in the 2026 financial year, driven by moderating pricing and easing inflationary pressures in some of its portfolios.
What they said: "Following the disciplined execution of our strategic and operational priorities, including the successful completion of our simplification journey with the sale of Suncorp Bank and New Zealand life, Suncorp's full focus as a pure-play general insurer is on improving the insurance products and services we offer our customers across Australia and New Zealand," said CEO Steven Johnston.
The source: ASX
