Suncorp commercial GWP increases 6.9% in first half

16 February 2023

Suncorp Australian commercial gross written premium (GWP) increased 6.9%, excluding portfolio exits in the first half, with gains across short-tail underwriting partly offset by a decrease in packages.

The company says the short-tail tailored underwriting portfolios account for more than 60% of commercial GWP and increased 13.5% on the previous corresponding period (pcp).

“Growth was driven by the larger NTI, property and fleet portfolios, reflecting mid-to-high single digit rate increases for claims inflation and the inflationary impacts on exposures”, the company says.

“Across short-tail there continued to be strong retention rates, in line with pcp, as well as higher new business, particularly in property”.

In packages, where the focus has been on improving margins, GWP fell 4.2%, with a rate increase of 10% in the half. New business volumes fell, reflecting increased competition.

Suncorp says further improvements in margin, and growth, will be underpinned by the continued delivery of the new Intermediated SME platform in the first half of next financial year, including connectivity with selected major broker platforms.

The Australian insurance GWP break-down by product shows commercial GWP of $928 million for the half, compared to $869 million a year earlier.