Sale of Suncorp Bank brings in improved profit of $1.1 B for insurer

Insurer Suncorp Group Ltd (ASX:SUN) said its net profit after tax (NPAT) for the first half of the 2025 fiscal year was $1.1 billion, a significant jump from $582 million in the previous corresponding period.

This, the company explained, was largely influenced by its sale of Suncorp Bank.

In addition to the sale – completed at the end of July 2024 – Suncorp profits were enhanced by supportive natural hazard experience, strong investment returns, and the fact reserve strengthening recorded in the past fiscal year was no longer a factor for 1H FY25.

A benign period for natural hazards meant the total cost for this was $503 million during the first half of FY25, with this being $277 million less than the company’s allowance in the period.

This included only six weather events above $10 million in Australia, while no significant weather events were recorded in New Zealand.

CEO Steve Johnston said profit indicated Suncorp was in good shape. “These results reflect our discipline in executing strategic and operational priorities,” he said.

“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.

“It is pleasing to be returning the net proceeds of the sale of the Bank to shareholders. It’s significant that we have been able to deliver the same net proceeds that we forecast when the transaction was announced almost 1,000 days ago.”

Suncorp shares rose after the news, and at 10:45 AEDT, they were trading at $21.34 – an increase of 4.86% since the market opened.

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