Suncorp Posts $1.1B Profit, Unveils $4.1B Capital Return Plan

Strong Financial Performance Amid Favourable Conditions

Suncorp Group Limited has delivered a solid first half for the 2025 financial year, reporting a net profit after tax (NPAT) of $1.1 billion. This performance was underpinned by a relatively benign natural hazard season across Australia and New Zealand, positive investment returns, and a one-off profit from the sale of Suncorp Bank. Cash earnings rose to $860 million, reflecting operational strength despite ongoing economic pressures.

The insurer’s results come at a time when natural disasters continue to challenge communities, with recent bushfires in Victoria and flooding in North Queensland underscoring the critical role of insurers. Suncorp’s proactive investments in disaster preparedness, including the launch of a state-of-the-art Disaster Management Centre in Queensland and deployment of Mobile Disaster Response Hubs, demonstrate its commitment to community resilience.

Capital Return and Dividend Strategy

In a significant move, Suncorp announced a $4.1 billion return of capital to shareholders, comprising a $3.8 billion capital return and a $0.3 billion fully franked special dividend. This equates to $3.00 and $0.22 per share respectively, payable in March 2025. Alongside this, the Board declared a fully franked interim dividend of 41 cents per share, maintaining a payout ratio within the targeted 60% to 80% range of cash earnings.

The capital return follows the completion of Suncorp’s strategic divestment of its banking business to ANZ and the sale of its New Zealand life insurance arm, Asteron Life. These moves mark the culmination of a five-year simplification journey, positioning Suncorp as a focused Trans-Tasman general insurer.

Strategic Focus on Technology and Customer Outcomes

Looking ahead, Suncorp is prioritising modernization through technology investments, including artificial intelligence, digitisation, and automation. These initiatives aim to enhance customer experience and deliver innovative, personalised insurance products. The insurer also continues to advocate for greater investment in natural hazard mitigation, recognising the growing challenges posed by climate change and insurance affordability.

Operationally, Suncorp is expanding its workforce and infrastructure in disaster-prone regions, exemplified by the establishment of a new regional hub in Townsville, Queensland, which will add 120 insurance specialists. This expansion underscores the company’s commitment to supporting vulnerable communities and strengthening its disaster response capabilities.

Governance and Board Renewal

In governance developments, Suncorp announced the appointment of David Whiteing as a non-executive director, bringing expertise in financial services and technology leadership. This appointment aligns with the company’s ongoing Board renewal efforts to diversify skills and backgrounds, supporting its strategic transformation.

Chairman Christine McLoughlin expressed gratitude to employees and shareholders, highlighting the company’s strong position to deliver value as a reliable insurer for Australia and New Zealand. The Board remains vigilant on areas for improvement, particularly in light of recent industry inquiries, and confident in the strategic plan through to FY27 and beyond.