By Alice Uribe

SYDNEY--Suncorp Group Ltd. shares rose 6.7% to 12.16 Australian dollars after the company's first-half cash earnings beat analysts' estimates.

The stock ended the final week of January 1.2% lower at A$11.16, the weakest end to the week for that month.

While Suncorp's cash earnings--a measure tracked by analysts that excludes certain costs and one-time items--fell 29% to A$361 million (US$257.3 million) for the six months through December, Citi analysts had expected A$267 million.

Suncorp's cash earnings were also 26% ahead of consensus, Citi said, adding that the insurer's A$0.23 interim dividend was well ahead of the A$0.17 consensus had forecast.

The Australian insurer said Tuesday that its banking profit after tax increased to A$200 million from A$190 million a year earlier and accounted for 55% of the group's cash earnings. But natural-hazard claims, which have plagued Australian general insurers amid the current La Niña climate pattern, were a drag on the result.

Suncorp Chief Executive Steve Johnston said, "We feel this is a creditable result in the context of elevated natural hazard experience and lower investment returns, with the company confident in the reinsurance program it has in place for the second half.


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


(END) Dow Jones Newswires

02-07-22 2220ET