Suncorp Group Limited (ASX:SUN) Announces 1H25 Financial Results
Financial Performance
Suncorp Group Limited (ASX:SUN) reported a Net Profit After Tax (NPAT) of $1,100 million for 1H25, up from $582 million in the previous corresponding period. Cash earnings increased to $860 million, compared to $660 million pcp. The General Insurance sector saw a Gross Written Premium (GWP) growth of 8.9%, with the underlying insurance trading ratio maintaining at 11.8%.
Capital Return and Dividends
The company announced a capital return of $3.00 per share from the sale of Suncorp Bank, alongside a fully franked special dividend of 22 cents per share. Additionally, an interim dividend of 41 cents per share was declared, representing a payout ratio of 60.6% of cash earnings.
Operational Highlights
Suncorp maintained a robust capital position with $4.1 billion in net proceeds from the sale of Suncorp Bank. The Group benefited from favourable natural hazard experiences, with costs $277 million below the allowance. Investment income contributed $374 million to the results. The company continues to focus on operational efficiency and customer service improvements, including expanding its claims team and enhancing digital interactions.
Executive Comments
CEO Steve Johnston stated, “These results reflect our discipline in executing strategic and operational priorities. We have delivered to our commitments, we are financially strong and resilient, and we have created future capacity to invest in initiatives to support our customers.”
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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