Suncorp's Strong Financial Performance: $1.49 Billion Profit and Share Buyback
Australian Insurer Surpasses Expectations Amid Improved Margins and Investment Returns
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Australian insurer Suncorp has reported stronger-than-expected full-year cash earnings of A$1.49 billion for the fiscal year ending June 30, 2025, surpassing the consensus estimate of A$1.47 billion.
Statutory profit surged 52% to A$1.82 billion due to one-off gains from the sale of its banking operations.
The company, now solely a general insurer, benefited from improved insurance margins, higher policy prices, and increased investment returns.
Suncorp announced an on-market share buyback of up to A$400 million (approximately $262 million), complementing a prior A$4.1 billion capital return through share consolidation. Gross written premiums rose 6% to A$15.01 billion, with future growth expected in the mid-single digits. The insurance trading ratio improved to 11.9%, and net investment returns increased 16% to A$766 million. Natural hazard costs were A$1.36 billion, staying over A$200 million below its budgeted allowance. The announcement was well received by investors, with shares rising over 3%. Suncorp also declared a final dividend of 49 cents per share.
Rival insurers QBE and Insurance Australia Group also posted strong financial results recently, aided by lower catastrophe claims and increasing premiums. For policyholders, these robust financial performances may indicate a stable and resilient insurance market, potentially leading to more competitive product offerings and enhanced customer services.
Published:Thursday, 18th Dec 2025 Source: Paige Estritori
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