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Highlights
- Suncorp (ASX:SUN) records an 89% increase in statutory net profit for HY25.
- A significant cash return of $3.22 per share announced after the sale of Suncorp Bank.
- Strong growth across consumer and commercial insurance divisions despite rising claims costs.
Suncorp Group Ltd (ASX:SUN) saw its share price soar by more than 4% following the release of its first-half financial results for FY25, with a remarkable 89% jump in statutory net profit. The company, which operates an extensive range of insurance brands such as Suncorp, AAMI, GIO, Apia, and Vero, posted impressive results for the six months ending 31 December 2024.
One of the key drivers of the surge in profit was the growth in general insurance gross written premiums (GWP), which rose 8.9% to $7.8 billion. Additionally, the insurance giant benefited from lower-than-expected natural hazard costs, which were $277 million below its allowance, totaling $503 million. Cash earnings saw a 30% increase, reaching $860 million. The company also reported strong returns from its investments, totaling $374 million, though slightly down from last year’s $396 million.
In addition to these impressive financials, Suncorp revealed substantial returns for shareholders. Investors will receive a $0.41 ordinary dividend per share and a special dividend of $0.22 per share, along with a capital return of $3.00 per share. This total payout of $3.22 per share stems from the $4.1 billion in proceeds from the sale of Suncorp Bank to ANZ Group Holdings Ltd (ASX:ANZ), finalized on 31 July 2024. The one-off gain from the sale amounted to $252 million, significantly boosting the company’s statutory profit.
The company's consumer insurance division reported a notable 10.2% growth in GWP, with an 8.9% increase in average written premiums for motor insurance. The division’s profit after tax more than doubled to $423 million. Meanwhile, the commercial and personal injury insurance segments also posted growth, with GWP up 9.7%, although claims costs increased by 10% due to portfolio expansion and a shift in product mix.
Suncorp’s New Zealand business performed strongly, with net profit after tax increasing from NZ$80 million to NZ$229 million, bolstered by favorable claims conditions and prior price hikes. The sale of its New Zealand life business to Resolution Life for NZ$410 million, completed in January 2025, further adds to the company’s cash reserves.
Looking ahead, Suncorp expects mid-to-high single-digit GWP growth, with pricing pressures easing in certain markets, particularly in New Zealand. The company’s focus on maintaining a sustainable return on equity positions it well for continued growth in the coming periods.
