Suncorp Group has announced 1H24 financial results. The insurance and banking giant with operations across Australia and New Zealand reported “improved earnings” attributed to a “significant improvement” in investment returns.
“Net investment returns were up significantly from A$167 million in 1H23 to A$396 million and this has been a key contributor to our reported earnings and profit for the half,” said Group CEO Steve Johnston (pictured above) in an ASX announcement.
According to the announcement, the insurance division’s gross written premium (GWP) was nearly A$7 billion, an increase of more than 16%. The Group’s net profit after tax was A$582 million, up by 5.4%.
Suncorp New Zealand reported half year profit after tax of NZ$94 million, an increase of more than 3% from the previous period.
“Our Australian and New Zealand general insurance businesses achieved strong premium growth, with customer growth across both our home and motor portfolios,” said Johnston. “The growth in gross written premiums is also reflective of targeted price increases in response to higher reinsurance costs, ongoing supply chain inflationary pressures resulting in higher repair costs for cars and homes and an elevated level of natural hazards.”
The announcement reported that total Group operating expenses increased 7.0% to A$1.21 billion, “largely reflecting growth related expenditure and inflation.”
The CEO also said it was “a challenging half for customers and the Group amid ongoing inflationary pressures and the impact of six severe weather events that battered Australian communities in November and December.”
However, the release said the total cost of natural hazard events was A$568 million, more than A$100 million below the Group’s allowance for the half.
“The decision brings us one step closer to becoming a dedicated Trans-Tasman insurer proudly headquartered in Queensland,” said Johnston. “We look forward to continuing to engage constructively with the Queensland Government and Federal Treasurer on the remaining approvals and remain fully committed to Suncorp Bank while the process continues.”
