Suncorp posts 76% drop in 1H profit as natural hazard costs surge
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The news: Financial services group Suncorp reported a sharp drop in first-half profit to $263 million, down from $1.1 billion a year earlier, after seeing a higher level of natural hazard costs and lower investment returns over the period.
The numbers: The result fell shy of estimates of $269 million, according to Visible Alpha data.
Gross written premium (GWP) grew 2.7% year on year from $7.487 billion to $7.689 billion. The group expects GWP growth near the bottom of its "mid-single digits" guidance range for the full year.
Suncorp declared an interim dividend of 17 cents per share, lower than an estimated 18 cents per share by analysts.
The company said it dealt with nine natural hazard events through the half, resulting in more than 71,000 claims at a net cost of around $1.3 billion. Thunderstorms and hailstorms on Australia's east coast contributed to the majority of the claims received over the half, with a giant hailstorm event in November expected marking "among our costliest in recent history".
The source: ASX
