Suncorp posts H1’25 net profit as natural hazard costs stay within budget

Australian insurer Suncorp has reported net profit after tax of A$1.1 billion for H1 of its 2025 financial year, while gross written premium in its General Insurance business increased by 8.9% compared to the same period in the prior year.

According to Suncorp, this net profit result includes a one-off gain on sale (A$252 million) of Suncorp Bank, which was completed on 31 July 2024.

“Other factors that supported the result include favourable natural hazard experience, positive investment returns and the nonrecurrence of prior year reserve strengthening, which impacted the prior period,” the firm added.

The total cost of natural hazards in H1 of the 2025 financial year was A$503 million, A$277 million below Suncorp’s allowance.

The firm said that it benefited from a benign natural hazard period, with six weather events above A$10 million in Australia in H1, and no significant weather events in New Zealand.

Suncorp explained that it has a comprehensive reinsurance program in place for major events with full limits available on all covers going into H2 of the financial year.

Meanwhile, Suncorp’s cash earnings, which backs out the gain on sale of Suncorp Bank and other non-cash items, increased to A$860 million in H1.

As mentioned, gross written premium in the General Insurance business increased by 8.9% in H1, reflecting both unit growth and the pricing response to claims inflation and a higher natural hazards allowance.

Suncorp CEO Steve Johnston commented, “These results reflect our discipline in executing strategic and operational priorities. We have delivered on our commitments, we are financially strong and resilient, and we have created future capacity to invest in initiatives to support our customers.

“Suncorp remains committed to working with Governments, other insurers, banks, technical experts, community organisations and homeowners to reduce Australia’s exposure to natural hazard risks.

“Reducing risk will not only protect lives, homes and businesses, but it will also go a long way in reducing the risk of a claim, in turn ensuring Australians and New Zealanders can access affordable, fit-for-purpose insurance.”

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