Suncorp Group releases full-year results

Results

FY22

FY21

Insurance Australia

AU$174 million

AU$547 million

Banking

AU$368 million

AU$419 million

New Zealand

AU$155 million (around $165 million)

AU$200 million

Group net profit after tax

AU$681 million

AU$1.03 billion

The insurer, which last month agreed to sell its banking operations to ANZ, noted: “Group net profit after tax was down by 34.1% to AU$681 million, while cash earnings were down 36.7% to AU$673 million.

“The prevailing La Niña weather pattern across Australia and New Zealand led to 35 separate weather events and around 130,000 natural hazard claims. This resulted in the group exceeding its natural hazard allowance by AU$101 million, with significant recoveries made under the group’s reinsurance programme.”

Aside from the higher natural hazard costs, Suncorp was also hit by losses due to investment market volatility. The company, however, asserted that the underlying business showed strong momentum during the year.

“A highlight of this result is the GWP (gross written premium) growth that has been delivered and the increased underlying ITR (insurance trading ratio), which demonstrates that we can meet the needs of customers and make good progress against our strategic initiatives,” said Suncorp Group chief executive Steve Johnston.

“We are proud of what we have delivered this year, and the hard work we have done over the past three years means we are able to reaffirm our FY23 targets.”

Suncorp’s GWP grew 6.8% and 14.1%, respectively, in Australia and New Zealand.

Meanwhile the firm stated: “The board has declared a fully franked final ordinary dividend of 17 cents per share, bringing total fully franked ordinary dividends for FY22 to (AU) 40 cents per share. The group’s full-year dividend payout of 75% of cash earnings is towards the top of the target payout ratio range of 60% to 80%.”