Suncorp boss Steve Johnston flags $4.6b-plus cash | Australian Markets

Queensland insurer Suncorp is rewarding shareholders after posting a $1.1 billion half-year revenue, due to a comparatively quiet begin to the catastrophe season and the sale of its banking business.

Suncorp has flagged a $3-a-share capital return on March 5 from the $4b bank sale to ANZ, plus an bizarre dividend of 22¢ and a 41¢ particular dividend. Each dividends are absolutely franked and can be paid on March 14.

The $4.6b of shareholder funds had been unveiled forward of chief government Steve Johnston flagging more capital returns, almost definitely by way of an on-market share buyback.

Mr Johnston mentioned it was pleasing to have the ability to make the returns first foreshadowed when the $4.9b Suncorp-Metway Financial institution sale was unveiled in July 2022, subject to a selection of approvals and legislative amendments.

“These results reflect our discipline in executing strategic and operational priorities,” he mentioned. “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.”

The Suncorp-Metway Financial institution sale, accomplished on July 31 final 12 months, was half of the Australian Securities Alternate-listed company’s deal with its client, business and obligatory third-party insurance coverage operations.

Suncorp offered its Asteron Life operations in New Zealand to Decision Life final month, however retains its Kiwi motor and normal insurance coverage companies.

Suncorp’s $1.1b internet revenue for the six months to December 31 was $518m larger than the interim consequence for 2023-24.

The latest consequence included $247m of earnings from business gross sales or from operations that had been offered. That’s a $318m turnaround in comparison with $71m of losses from offloaded operations in 2024-25.

The following largest contributor to the near-doubled backside line had been earnings from its Australian client insurance coverage operations, which surged by $220m to $423m.

Suncorp mentioned the whole price of natural disasters was $503m, $277m beneath the allowance for the December half, due to what it described as “benign natural hazard period”. There have been six climate occasions in Australia that price above $10m within the half.

Suncorp New Zealand earnings surged by $134m to $208m, additionally due to a comparatively benign half 12 months throughout the Tasman Sea.

Whereas acknowledging the nice tidings within the December half, Mr Johnston mentioned insurers had been on the entrance line of climate change and emphasised the significance of being ready.

“Severity and frequency of extreme weather is becoming an increasingly large part of everyone’s premiums through natural hazard budgets and reinsurance protection,” he mentioned.

“While we benefited from good weather conditions well below our expectations this half, over the last five years, we have delivered in line with our increasingly robust natural hazard budget.”