By Alice Uribe


SYDNEY--Shares in Suncorp Group Ltd. rose on Wednesday after the general insurer reported its first-half results, which were marked by strong earnings boosted by higher insurance pricing.

The stock was up 4.2% at 12.99 Australian dollars (US$9.04). It earlier climbed to A$13.12, which is its highest point over the last 12 months.

Suncorp on Wednesday said its net profit of A$560 million for the six months through December, up 44% from the A$388 million reported a year earlier. At the same time it reported gross written premium growth in Australia and New Zealand boosted by strong pricing.

"Our Australian and New Zealand businesses have achieved strong growth in premiums. The bank continued to grow its home and business lending portfolios and customer deposits," said Chief Executive Steve Johnston.

Suncorp said it remains on track to achieve its full-year targets, with some industry experts suggesting that there is further growth in insurance pricing ahead.

"The insurance business generated high levels of premium growth and strong underwriting performance, as reflected in its combined ratio of 94.5%. The group's banking operations are benefiting from rising interest rates," said Frank Mirenzi, vice president at Moody's Investors Service.

"Over the second half of the year, we expect increasing prices to benefit the insurance business, however the credit cycle may turn, raising risks and credit costs for the bank."

Suncorp shares gained 8.8% over 2022.


Write to Alice Uribe at alice.uribe@wsj.com


(END) Dow Jones Newswires

02-07-23 2010ET