Suncorp Group has released its results for the first half of the 2023 financial year (1H23), posting a net profit after tax of $560 million, up 44.3 per cent on the previous corresponding period ($388 million).
Cash earnings surged 63 per cent, rising from $361 million in 1H22 to $588 million, mostly driven by a 142 per cent boost in revenue from the Insurance Australia business, from $114 million to $276 million.
This came off the back of a 12 per cent increase in Insurance Australia’s home insurance premiums, an 11 per cent rise in motor insurance premiums, a 10 per cent increase in general insurance premiums, and a 12 per cent boost to gross premiums across Suncorp New Zealand.
Suncorp Bank also delivered strong earnings growth of 28 per cent (up from $200 million to $256 million), while Suncorp New Zealand reported a modest improvement of 2.5 per cent ($81 million to $83 million).
The group’s 1H23 performance was helped by “positive investment returns” despite market volatility.
Investment returns were reportedly driven by “higher running yields” and inflation-linked bonds (ILBs), with Suncorp’s underlying annualised yield on insurance funds of 4.98 per cent, up from 0.94 per cent in 1H22.
Fixed income assets made up 73 per cent of the group’s allocations, followed by ILBs (15 per cent), growth assets (7 per cent), and cash (5 per cent).
Reflecting on the group’s overall performance, Suncorp Group chief executive officer Steve Johnston said he was pleased with the result amid “ongoing economy-wide inflationary pressures” and the impacts of eight natural hazard events.
“Suncorp’s priority has been supporting our customers impacted by these severe weather events, while also continuing to work hard to return customers to their homes following the Australian East Coast floods almost one year ago,” Mr Johnston said.
“In addition, through a dedicated focus on executing our strategic initiatives as outlined to the market two years ago, our three businesses have continued to build on the good momentum achieved over this time to deliver top-line growth with improved margins and productivity.”
Mr Johnston said the group is on track to achieve its FY23 targets.
