Suncorp Group (SUN) investor relations material

Executive summary

• Underlying earnings increased 4.5% year-over-year, with margins at the top end of the target range and disciplined expense management supporting strong capital returns.

• Cash earnings reached $1,042 million and NPAT was $1,027 million, despite natural hazard costs exceeding allowance by $254 million.

• Gross written premium (GWP) grew 2.7% to $15.4 billion, with growth in most core portfolios, especially Consumer and Personal Injury.

• Significant capital returns: fully franked final ordinary dividend of 52 cents per share, special dividend of 10 cents per share, and up to $250 million buyback planned for FY27.

• Continued investment in technology, data, and AI to drive productivity, operational efficiency, and scalability.

Financial highlights

• Underlying insurance trading ratio (UITR/ITR) at 11.8%, at the top end of the 10%-12% target range for the fifth consecutive period.

• Expense ratio improved by 50 basis points year-over-year to 18.1%.

• Net investment returns totaled $553 million, with yields rising to ~5%.

• Strong prior year reserve releases, including $177 million in Commercial & Personal Injury.

• Dividend payout ratio maintained at around 70% of cash earnings.

Outlook and guidance

• GWP growth expected between 3% and 5% for FY27, driven by inflationary pricing in Consumer and Personal Injury.

• UITR/ITR anticipated in the top half of the 10%-12% range.

• Total expense ratio expected to remain broadly in line with FY26/FY27.

• Disciplined capital management with payout ratio targeted at midpoint of 60%-80% and up to $250 million buyback planned.