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• Net Profit: Up 89%, driven by strong underlying business performance and key contributors such as natural hazard experience and gain on sale of the bank.

• Natural Hazard Experience: $277 million below the allowance due to benign first half weather.

• Gain on Sale: $252 million added to profit from the sale of Suncorp Bank.

• Interim Ordinary Dividend: $0.41 per share, with a payout ratio of around 61%.

• Capital Return: $4.1 billion or $3.22 per share from the sale of the bank.

• GWP Growth: Increased around 9%, with strong top-line growth.

• Underlying ITR: Improved by 160 basis points to 11.8%.

• Consumer Portfolio Growth: Home portfolio grew by 10%, Motor GWP increased by over 10%.

• New Zealand GWP: Up 6%, with strong growth in the consumer portfolio.

• Investment Performance: Remained elevated with strong yields and higher equity market returns.

• General Insurance Operating Expenses: Increased 7% due to investment in strategic projects.

• FY25 Outlook: GWP growth expected in mid to high single digits, underlying ITR towards top end of 10-12% range.

Release Date: February 11, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Suncorp Group Ltd (SNMCY) reported a net profit increase of 89%, driven by strong underlying business performance and key contributors such as a benign natural hazard experience and the gain on the sale of the bank.

• The company has completed its simplification journey, emerging as a pure play insurer, which allows it to focus entirely on delivering better products and services.

• Suncorp Group Ltd (SNMCY) is maintaining a strong balance sheet and capital position, enabling a significant capital return to shareholders, including a $4.1 billion return from the sale of the bank.

• The company is investing in modernizing its core systems, including moving data to the cloud and implementing a new policy administration system, which positions it at the forefront of industry change.

• Suncorp Group Ltd (SNMCY) has achieved strong growth in Gross Written Premium (GWP), with a 9% increase, and maintained margins at the top end of its target range.

Negative Points

• The gain on the sale of the bank is a one-off event, and future results may not benefit from similar gains.

• Natural hazard events and global market fluctuations pose risks to the company's financial performance, as highlighted by the potential for significant changes in the second half.

• The company faces challenges in the insurance affordability space, with increasing natural hazard events and inflation putting pressure on customers.

• Suncorp Group Ltd (SNMCY) has seen some moderation in volume growth, particularly in the home insurance segment, due to a disciplined approach to pricing and margin focus.

• The company is experiencing competitive pressures in various segments, including commercial lines and consumer portfolios, which could impact future growth and profitability.