Suncorp Group, a Brisbane-headquartered Australian financial services company focused primarily on general insurance, with operations across Australia and New Zealand, reported a sharp fall in fiscal first-half earnings after heavy natural catastrophe losses and weaker investment income weighed on results.
Net profit after tax dropped to A$263 mn from A$723 mn a year earlier. Gross premiums written edged up to A$7.69 bn from A$7.52 bn, reflecting pricing momentum across parts of the portfolio.
Net investment income declined due to negative mark-to-market movements linked to higher risk-free rates. Management noted stronger yields should support future periods, though the immediate impact cut into reported earnings.
The general insurance net loss ratio deteriorated to 78.6 from 72.3. Nine declared natural hazard events hit during the six months ended Dec. 31, generating more than 71,000 claims and a net cost of about A$1.3 bn, Chief Executive Officer Steve Johnston said.
Thunderstorms and widespread hailstorms along Australia’s east coast, especially in southeast Queensland, drove the bulk of claims through October and November.
Johnston said a November hailstorm ranks among the costliest in recent history.
Earlier, Suncorp flagged it was nearing its fiscal 2026 natural catastrophe allowance of A$1.77 bn after estimating A$1.32 bn in losses from events including typhoons, hailstorms, and bushfires.
The first half included nine events exceeding A$10 mn each. Catastrophe losses more than doubled from A$503mn in the prior year’s first half.
Net incurred claims rose 23.4%, reflecting catastrophe costs and ongoing working claims inflation.
Construction and labor pressures continued to lift repair costs in the consumer home portfolio, while motor lines faced persistent parts and labor inflation. In New Zealand, working claims trends moderated.
Johnston pointed to growth in consumer lines despite a competitive backdrop and household cost-of-living strain. Management said tighter risk selection and pricing supported expansion in lower-risk target segments.
Commercial lines grew, and compulsory third party pricing increased, though workers’ compensation volumes declined.
New Zealand posted negative growth amid a soft commercial cycle, rising competition from international capital, slower economic conditions, and softer consumer pricing tied to lower claims frequency.
According to Beinsure, sustained catastrophe volatility will test pricing adequacy and reinsurance structures across the Australian market.
