Suncorp : announces 1H26 financial results

Suncorp announces 1H26 financial results

News

February 18, 2026

Higher natural hazard costs but resilient underlying margins and strong capital position.

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#Results overview

"While Suncorp's 1H26 reported profits and shareholder returns have been challenged by an elevated level of natural hazard costs and lower investment returns over the half, our underlying business remains resilient as we continue to deliver on our strategic imperatives and drive good momentum leading into the second half of the financial year.

"Suncorp dealt with nine declared natural hazard events through the half, resulting in more than 71,000 claims at a net cost of around $1.3 billion. The destructive thunderstorms and widespread hailstorms that hit the east coast of Australia, particularly south-east Queensland through October and November, contributed to the majority of claims received over the half, with the giant hailstorm event in November likely to be among our costliest in recent history.

"Despite this, the business continues to perform strongly, reflected in the solid growth of our Consumer business, and our underlying insurance trading ratio, which has remained towards the top half of our target operating range at 11.7%.

"Importantly, we have thrown our full support behind our customers impacted by these severe weather events, while also working hard to finalise complex claims from major events earlier in the year including ex-Tropical Cyclone Alfred and flooding across parts of Queensland and New South Wales.

"These events continue to underscore our purpose and the important role we play in our communities and economies. I am particularly proud of our enhanced ability to respond to such large-scale weather events and claims volumes with speed and efficiency, demonstrating the benefits of our strategic investments in disaster management capability.

"The value and quality of our brands, products and services continue to support customer growth, particularly across our Consumer portfolio which experienced Gross Written Premium growth of 6.3% and unit growth of 2% in Motor and 0.4% in Home. This was encouraging in what remains a highly competitive market and at a time when cost-of-living pressures continue to impact households. We have maintained a focus on strengthening the mix and quality of our portfolios, with enhanced risk selection and pricing supporting growth in low risk, target segments.

"Our balance sheet and capital position remain strong and the Board has determined to pay a fully franked interim ordinary dividend of 17 cents per share, representing 68% of cash earnings.

Suncorp CEO Steve Johnston

We are making good progress on our strategic imperatives to modernise our platforms and transform our operations by leveraging artificial intelligence at scale.

"Our disciplined approach to capital management has enabled us to complete $168 million of our on-market share buy-back program, which began in September. We continue to target around $400 million through this program by the end of FY26.

"Looking ahead, GWP growth is expected to be around the bottom of the mid-single digits range given the current cycle in Commercial in Australia and New Zealand, while underlying ITR is expected to remain in the top half of the 10% to 12% range."

- Suncorp CEO Steve Johnston

#Performance highlights

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1H25: $1,100m

Profit after tax (NPAT)

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1H25: $7,487m

Gross written premium

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Interim dividend

Dividend

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1H25: 11.8%

Underlying ITR

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1H25: $374m (ii)

Net investment returns

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1H25: $4,440m

Net incurred claims

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1H25: $855m (iii)

Operating expenses

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1H25: $503m

Natural hazards

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CET1 above mid-point of target range 2H25: $997m

Capital

#Divisional results

#Consumer Insurance

• $(137)m

  Insurance trading result

• $4,229m

  Gross written premium

The Consumer Insurance trading loss was primarily due to the elevated natural hazard experience in the half. The result was also impacted by lower investment returns, partly offset by the
earn through of pricing in response to an increased natural hazards allowance and ongoing claims inflation.

The UITR increased from 9.4% to 9.9%, driven by the earned impact of pricing changes.

GWP increased 6.3%, supported by unit growth of 2.0% in the Motor portfolio and 0.4% in the Home portfolio.

Net incurred claims increased 37.7% to $3,471 million, with working claims impacted by stickier claims inflation and some prior year reserve strengthening.

#Commercial & Personal Injury Insurance

• $204m

  Insurance trading result

• $2,203m

  Gross written premium

The C&PI result reflects higher natural hazard costs and lower investment income, partly offset by strong prior year reserve releases.

The UITR reduced from 10.0% to 9.4%, reflecting increased competition and lower underlying investment income.

GWP of $2,203 million increased 2.5%, with Personal Injury benefitting from significant pricing increases in key CTP schemes, whilst Workers' Compensation GWP contracted. Commercial benefitted from strong growth in Fleet, albeit partially offset by the impact of the cycle on Property and Professional and Financial Lines.

Net incurred claims of $1,467 million increased 6.5%, reflecting the natural hazards experience and portfolio growth.

#Suncorp New Zealand

• NZ$290m

  Insurance trading result

• NZ$1,412m

  Gross written premium

The result was impacted by elevated natural hazards experience, reduced written premium amid a softening commercial market cycle and weak economy, and lower investment income.

The UITR increased to 21.3% following a moderation in working claims, however, is expected to moderate to target levels over the second half.

GWP decreased 5.6% reflecting challenging market conditions in the intermediated business with softening prices in Commercial, and the exit of a consumer lines brokered book of business. In Consumer, the direct consumer AA business continued to perform well, with good unit growth.

Net incurred claims increased 2.4%, following the October heavy rain and wind event and elevated attritional weather-related claims.

#Delivering for customers

• $5.1 billion

  Claims paid (up from $4.8 billion)

• NPS +12.9

  Consumer Australia Net Promoter Score (up from +6.9)^iv

#Improving customer experience

Digital uptake continues to grow

73.3% of sales made online (up from 69.9%)

63.1% of service transactions online (up from 59.0%)^v

Driving improvements for motor customers

Average life of a customer motor claim reduced by 7 days

Pop up motor centre assessed 4000+ hail-damaged vehicles in two weeks, speeding up the repair process

Motor claims Net Promoter Score +59.4 (up 4.4 points)

Improving household maintenance

10K+ maintenance tasks completed in Suncorp Insurance's "My Home" cashback rewards program; 250K+ Suncorp Haven website visits to understand their home risks.

Community engagement

6000+ preparedness conversations with community members at 11 community events; new educational resources on a range of topics including lithium-ion batteries and home repair process.

Vero's award-winning service and culture

Won the Gold Mansfield Award for Claims Excellence for the sixth year in a row and NIBA's Large General Insurer of the Year for third consecutive year - as voted by brokers.

AAMI Driving Test

100,000+ new AAMI app downloads in the nationwide safer driving initiative, the AAMI Driving Test.

#Leading in extreme weather response

• On the ground with our customers: Mobile Disaster Response Hubs and Customer Support Teams engaged customers in 27 communities.
• Proactive communications: 3,300+ welfare calls and 460,000+ SMS messages, providing safety information, guidance and reassurance to disaster impacted customers.
• Advocating for safer communities: Hosted a Future Housing Roundtable at Parliament House in Canberra, and National Adaptation Framework Panel in Auckland.
• Mental health support: Partnered with Black Dog Institute on new resources for customers and community members, designed to provide tips and advice before and after a severe weather event.

#Enabled by technology

• Conversational AI customer support: 15 chatbots handled more than 1.6 million digital customer interactions in the half, up more than 28%.
• Support at the scene of a car accident: New Crash Detection feature in the AAMI app helps customers collect key information after an accident.

ⁱ All changes refer to the prior corresponding period unless otherwise stated.

ⁱⁱ Net investment income is investment income on insurance funds and shareholders' funds net of discount unwind and rate adjustments on claims liabilities.

ⁱⁱⁱ Total General Insurance operating expenses includes direct and non-directly attributable expenses.

^iv RFI Global - Atlas. Performance measured as at December 2025 amongst an aggregate of Suncorp Group Australian consumer insurance customers.

^v Digital sales and service transactions for all Consumer insurance brands (excluding TSI), Home, Motor & NSW CTP products. Previously reported as Mass brands only.

#More 1H26 resources

• ASX announcement

  Download

• 2024-25 Annual Report

  Download

• Results webcast

  Watch now

• 1H26 investor pack

  Download

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