Although natural disaster costs rose sharply to A$1.319 billion in the first half of 2026 from A$503 million a year earlier, Suncorp said its underlying business “remains resilient” and its capital position remains strong.
Suncorp chief executive Steve Johnston said: “While Suncorp’s H126 reported profits and shareholder returns were challenged by rising natural disaster costs and lower investment returns, our underlying business remains resilient as we continue to deliver on our strategic imperatives and drive good momentum in the second half of the financial year.”
The company’s after-tax profit in the first half of 2026 was A$263 million, down from A$1.1 billion in the same period a year earlier.
Meanwhile, net investment returns for the period were A$259 million, down from A$374 million in the first half of 2025.
Despite this, Suncorp’s total written premiums increased to A$7.689 billion in the first half of 2026 from A$7.487 billion in the first half of 2025.
Johnston explained: “Suncorp dealt with nine declared natural disaster events during the first half, resulting in more than 71,000 claims and a net cost of approximately $1.3 billion.
“The damaging thunderstorms and widespread hail that hit Australia’s east coast, particularly south-east Queensland, in October and November were responsible for more than half of all claims, with November’s giant hail event likely to be one of our costliest events in recent years.
“Nonetheless, the business continues to perform strongly, as reflected in solid growth in our consumer business and our underlying insurance transaction ratio, which has remained in the upper half of our target operating range of 11.7%.”
Looking at Suncorp’s divisional results for the first half of 2026, the consumer insurance business recorded a trading loss of A$137 million, mainly due to higher natural catastrophe costs in the first half.
Results were also affected by lower return on investment, although this was partially offset by gains priced in to account for higher natural disaster benefits and ongoing claims inflation. The division’s total premiums increased to A$4.229 billion.
In terms of commercial and personal injury insurance, the insurance transaction volume in the first half of 2026 was A$204 million, with total premiums of A$2.203 billion.
Meanwhile, Suncorp’s New Zealand division had an insurance trading result of NZ$290 million and total written premiums of NZ$1.412 billion.
Johnston concluded: “Our balance sheet and capital position remain strong and the board has decided to pay a fully franked interim ordinary dividend of 17 cents per share, representing 68% of cash proceeds.
“Our disciplined approach to capital management allowed us to complete our $168 million market share repurchase program, which began in September. We continue to target approximately $400 million through this program by the end of fiscal 2026.
“Looking ahead, given the current business cycle in Australia and New Zealand, GWP growth is expected to be near the bottom of the mid-single-digit range, while underlying ITR is expected to remain in the upper half of the 10% to 12% range.”
