Suncorp Group posts resilient 1H26 earnings despite higher claims

The Suncorp Group Ltd (ASX: SUN) share price is in focus today after the company reported first-half FY26 net profit after tax (NPAT) of $263 million, as natural hazard claims surged to $1.3 billion but underlying insurance margins and capital remained strong.

What did Suncorp Group report?

• NPAT: $263 million, down from $1.1 billion in 1H25
• Gross written premium (GWP): $7.69 billion, up 2.7% from $7.49 billion
• Underlying insurance trading ratio (UITR): 11.7%, at the upper end of the target range
• Interim dividend: 17 cents per share, fully franked (68% payout ratio)
• Net incurred claims: $5.48 billion, up 23% due to natural hazard events
• $168 million of share buy-back completed; targeting $400 million by end of FY26

What else do investors need to know?

Suncorp responded to nine significant natural hazard events, mainly severe storms and hail in south-east Queensland, resulting in more than 71,000 claims this half. Natural hazard costs came in $453 million above allowance, making it one of the costliest periods in Suncorp’s history.

Despite these challenges, GWP rose, especially in its Consumer portfolio, which saw 6.3% growth. Digital uptake is rising, with over 73% of sales made online and customer experience measures such as claim handling speed and satisfaction improving.

Capital management remains a priority. Suncorp’s CET1 capital sits $700 million above its target mid-point, supporting ongoing shareholder returns through dividends and share buy-backs.

What did Suncorp Group management say?

CEO Steve Johnston said:

While Suncorp’s 1H26 reported profits and shareholder returns have been challenged by an elevated level of natural hazard costs and lower investment returns over the half, our underlying business remains resilient as we continue to deliver on our strategic imperatives and drive good momentum leading into the second half of the financial year.

What’s next for Suncorp Group?

Looking ahead, Suncorp expects gross written premium growth at the lower end of the mid-single-digit range, reflecting a competitive and softer market—especially in New Zealand. The underlying insurance margin is tipped to remain at the top half of its 10%–12% target.

Suncorp aims to keep costs under control while investing in growth, technology, and disaster management. Capital management will stay disciplined, with a payout ratio near the middle of the 60–80% range and the completion of a $400 million share buy-back by the end of FY26.

Suncorp Group share price snapshot

Over the past 12 months, Suncorp Group shares have declined 16%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Suncorp Group posts resilient 1H26 earnings despite higher claims appeared first on The Motley Fool Australia.

More reading

• National Australia Bank posts strong first quarter FY26 earnings
• Ventia extends NZ$160m Transpower contract: What it means for investors
• Spark New Zealand earnings: profit rebounds, dividend declared
• Mirvac Group posts 5% profit growth, expands pipeline in 1H26
• Iluka Resources posts lower FY25 profit but advances rare earths strategy

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.