Suncorp Group posted a steep 76% decline in NPAT to A$263 million and a 67% plunge in cash earnings to A$270 million for 1H26, missing the Visible Alpha consensus of A$311.2 million. EPS fell to 24.38 cents (from 98.29 cents in 1H25). Insurance revenue grew modestly to A$7.656 billion. Shares fell as much as 4.4% to A$15.28 on the day of the announcement, hitting their lowest level since mid-March 2024.
About Suncorp Group
Suncorp Group Limited (ASX: SUN | ADR: SNMCY) is one of Australia’s largest general insurance companies, headquartered in Brisbane, Queensland. The company was formed on 1 December 1996 through the merger of Suncorp, Metway Bank, and the Queensland Industry Development Corporation (QIDC). Following the completion of the sale of Suncorp Bank to ANZ Group in July 2024, Suncorp is now a pure-play general insurer, offering home, motor, commercial, and personal injury insurance across Australia and New Zealand under brands including AAMI, GIO, Suncorp Insurance, Vero, and Apia.
As of mid-January 2026, Suncorp’s estimated market capitalisation was approximately A$18.2 billion, based on a share price of around A$16.90 and approximately 1.075 billion shares on issue. The company had approximately 11,500 employees as of June 2025. The trailing twelve-month P/E ratio (as of late 2025 data) was approximately 10.2x, though this will shift materially with the weaker 1H26 result. The prior full-year dividend yield was substantial, boosted by one-off capital returns from the bank sale.
Top Financial Highlights
- NPAT (Net Profit After Tax): A$263 million, down 76% from A$1,100 million in 1H25.
- Cash Earnings: A$270 million, down 67% from A$828 million in 1H25, and missing the Visible Alpha consensus of A$311.2 million.
- Earnings Per Share (EPS): 24.38 cents, down sharply from 98.29 cents in 1H25.
- Insurance Revenue: A$7.656 billion, up 2.0% from A$7.509 billion in 1H25.
- Gross Written Premium (GWP): A$7.69 billion, up 2.7% from A$7.487 billion in 1H25, but missing the consensus estimate of A$7.78 billion.
- Natural Hazard Costs: ~A$1.32 billion net cost, far above the A$866 million half-year allowance, driven by nine declared events and more than 71,000 claims.
- Net Investment Returns: ~A$259 million, down 31% from A$374 million in 1H25.
- Net Incurred Claims (Consumer): A$3,471 million, up 37.7% year-on-year.
- Underlying Insurance Trading Ratio (UITR): 11.7%, in the top half of the 10%–12% target operating range.
- Interim Ordinary Dividend: 17 cents per share (fully franked), representing 68% of cash earnings — down from 41 cents in 1H25.
- Consumer GWP: A$4,229 million, up 6.3%, with Motor unit growth of 2.0% and Home unit growth of 0.4%.
- Commercial & Personal Injury GWP: A$2,203 million, up 2.5%.
- Suncorp New Zealand GWP: NZ$1,412 million, down 5.6%.
- Claims Paid: A$5.1 billion, up from A$4.8 billion.
- Share Buy-back: A$168 million completed of a targeted A$400 million on-market buy-back program.
Beat or Miss?
| Metric | Reported (1H26) | Consensus / Prior Year | Difference / Analysis |
| Cash Earnings | A$270m | A$311.2m (VA consensus) | Missed by ~13.2% — severely impacted by natural hazard costs |
| NPAT | A$263m | A$1,100m (1H25) | Down 76% — 1H25 included gain on bank sale; 1H26 hit by catastrophes |
| EPS | 24.38 cps | 98.29 cps (1H25) | Down 75.2% |
| GWP | A$7.69bn | A$7.78bn (consensus) | Missed by ~1.2% — NZ and Commercial softness weighed on growth |
| Natural Hazard Costs | ~A$1.32bn | A$866m (half-year allowance) | Exceeded allowance by ~52% — nine declared events |
| Net Investment Returns | ~A$259m | A$374m (1H25) | Down 31% |
| UITR | 11.70% | 10%–12% target range | Top half of target — resilient underlying performance |
| Interim Dividend | 17 cps | 41 cps (1H25) | Down 58.5% — reflecting lower cash earnings |
What Leadership Is Saying?
“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… 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%.” – CEO Steve Johnston – Strategy & Vision
“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. 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.” – CEO Steve Johnston – Capital Management & Outlook
Historical Performance: 1H26 vs 1H25
| Category | 1H26 (Dec 2025) | 1H25 (Dec 2024) | Change (%) |
| NPAT | A$263m | A$1,100m | -76.1% |
| Cash Earnings | A$270m | A$828m | -67.4% |
| EPS | 24.38 cps | 98.29 cps | -75.2% |
| GWP | A$7,690m | A$7,487m | +2.7% |
| Insurance Revenue | A$7,656m | A$7,509m | +2.0% |
| Natural Hazard Costs | ~A$1,319m | A$503m | +162.2% |
| Net Investment Returns | ~A$259m | A$374m | -30.7% |
| Net Incurred Claims (Consumer) | A$3,471m | A$2,520m* | +37.7% |
| Interim Dividend | 17 cps | 41 cps | -58.5% |
Competitor Performance: IAG and QBE
Insurance Australia Group (IAG) — 1H26 (Half Year Ended 31 December 2025)
| Category | IAG 1H26 (Dec 2025) | IAG 1H25 (Dec 2024) | Change (%) |
| Revenue | A$11.14bn | A$9.03bn | +23.3% |
| NPAT | A$505m | A$778m | -35.1% |
| GWP | A$8,929m | A$8,424m* | +6.0% |
| Reported Insurance Margin | 13.50% | 19.40% | -590 bps |
| Interim Dividend | 12 cps | N/A | N/A |
IAG’s 1H25 GWP estimated from 6.0% growth rate. IAG’s result was also heavily impacted by elevated natural hazard costs, including costs from the newly acquired RACQ Insurance (RACQI) portfolio. Excluding RACQI, IAG’s reported insurance margin was a stronger 17.7%.
QBE Insurance Group — 1H25 (Half Year Ended 30 June 2025)
Note: QBE reports on a calendar half-year ending 30 June, so the latest available result is 1H25 (June 2025). The December 2025 half is not yet reported.
| Category | QBE 1H25 (Jun 2025) | QBE 1H24 (Jun 2024) | Change (%) |
| Statutory NPAT | US$1,022m | US$802m | +27.4% |
| Adjusted NPAT | US$997m | US$777m | +28.3% |
| GWP | US$13,820m | US$13,060m* | +6.0% |
| Insurance Revenue | US$10,875m | US$10,438m | +4.2% |
| Combined Operating Ratio | 92.80% | 93.80% | -100 bps (improved) |
| Interim Dividend | A$0.31/share | A$0.24/share | +29.2% |
QBE 1H24 GWP estimated from the 6% growth rate. QBE’s result was notably stronger, benefiting from lower catastrophe costs ($479m vs $549m budgeted) and strong investment income of $788m.
How the Market Reacted?
Suncorp shares fell as much as 4.4% to A$15.28 on the morning of the results announcement (18 February 2026), hitting their lowest level since mid-March 2024. The stock had already been under significant pressure heading into the result, declining roughly 9.6% year-to-date from an opening price of A$17.67 on 1 January 2026, as the market anticipated elevated natural hazard costs following the company’s January trading update that flagged the A$1.32 billion catastrophe bill. The sharp miss on cash earnings versus the Visible Alpha consensus of A$311.2 million, the downgrade to GWP growth guidance to “around the bottom of the mid-single digits range,” and the steep 58.5% cut to the interim dividend all contributed to negative sentiment.
Despite the bearish near-term reaction, some analysts have noted that the underlying business metrics — particularly the 11.7% UITR and ongoing Consumer GWP growth — suggest the franchise remains fundamentally sound, with the profit decline driven largely by extraordinary weather rather than structural deterioration.
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