Suncorp posts strong profit

Suncorp posts strong profit | Insurance Business Australia

Insurance News

Suncorp posts strong profit

GWP more than $14 billion

Insurance News

By
Daniel Wood

Suncorp Group has announced FY24 financial results. The insurance giant with operations across Australia and New Zealand reported “strong increases.” Group net profits after tax are up by nearly 12% and gross written premium (GWP) grew by nearly 14% to $14.1 billion.

The release said the sale of the insurer’s banking division to ANZ on 31 July contributed $379 million to the year’s profits.

“While the headline results represent strong increases on the prior year it’s important to point out that the past three years have been very challenging,” said Steve Johnston (pictured above), Suncorp’s CEO.

In the ASX announcement, Johnston referred to the challenges of inflation, natural hazards and “a fundamental reset in global reinsurance markets.”

New Zealand profits up

Suncorp New Zealand delivered profit after tax of NZ$230 million and GWP was up by more than 17%.

This morning’s results also mentioned the insurer’s expected completion in January of its sale of its New Zealand life insurance business. The estimated net proceeds from the sale of Asteron Life Limited “are around $270 million,” said the release.

Profits in challenging times

According to the announcement, the total cost of the year’s natural hazard events was $1,235 million, $125 million below the Group’s allowance.

A rise in net investment income to $661 million, from $451 last year, was driven, said the release “by strong underlying yield on the interest-earning portfolio and stronger equity markets.”

Total Group operating expenses also went up. The release said they increased more than 8% to $2.5 billion, “largely reflecting growth related expenditure, inflationary pressures on wages and technology costs, and an increase in Bank costs.”

According to the release, profits from the sale of Suncorp Bank profit decreased by nearly 20% “impacted by competitive pressures on NIM and increased operating expenses.”