PriceSensitive

Suncorp Group (ASX:SUN) posts 68pc rise in full-year profit to $1.15b

ASX 200, ASX News, Finance
ASX:SUN      MCAP $24.92B
09 August 2023 13:16 (AEDT)

Source: Suncorp

Suncorp Group (SUN) has concluded the financial year on a positive note, reporting a net profit after tax of $1.15 billion, a significant increase from the previous year’s $681 million.

The Group’s cash earnings reached $1.25 billion, a rise from the $673 million reported in the previous year. Additionally, the company’s Australian insurance business (Insurance AU) generated $10.2 billion in earnings, reflecting a growth of 10.6 per cent.

SUN’s New Zealand insurance business (Insurance NZ) also performed well, achieving NZ$2.4 billion in earnings, marking a 14.3 per cent increase. Furthermore, Suncorp’s home lending saw a notable uptick of 9.1 per cent, totalling $54.8 billion.

The company successfully executed its annual plan (FY23 plan), resulting in improved returns for its stakeholders. Gross written premium (GWP) across Australia and New Zealand experienced a 10.8 per cent rise. Additionally, SUN enhanced its underlying insurance trading ratio (ITR) from nine to 10.9 per cent.

Despite these positive outcomes, Suncorp faced challenges due to several natural hazard events, including adverse weather patterns. This led to higher claims, surpassing the provisions set aside for such incidents.

Shareholders are set to receive a fully franked final year ordinary dividend of 60 cents per share, marking a 50 per cent increase from the previous year.

Suncorp Group CEO Steve Johnston remarked that the Group’s strong results exemplify the progress achieved over the past three years in successfully implementing strategic initiatives under the FY23 plan.

“Our dedicated focus on digitising and automating, reinvigorating our leading brands, becoming more efficient and improving how we serve our customers, has helped us to deliver strong top-line growth across our businesses and improve underlying margins,” he said.

“Our Australian and New Zealand businesses have achieved strong growth in premiums, while unit growth across Consumer portfolios demonstrates the value of our products and brands.”

Suncorp and its subsidiaries remain committed to supporting efficiency and customer growth, advocating for government programs to aid individuals residing in disaster-prone areas.

Suncorp has also confirmed its commitment to facilitating the merger process involving Suncorp Bank and ANZ, following the necessary regulatory procedures with the Australian Competition and Consumer Commission (ACCC).

SUN shares were down 1.93 per cent, trading at $13.49 at 1:16 pm AEST.

Related News