• Elevated natural hazard costs impact reported profits, but underlying business remains resilient
• Strong growth in Consumer portfolio, with GWP up 6.3% and unit growth in Motor and Home
• Robust capital position, with CET1 $700m above target mid-point and $400m share buyback planned

Suncorp Group Limited has announced its results for the half year ended 31 December 2025 (HY26). While the company's reported profits and shareholder returns have been challenged by an elevated level of natural hazard costs and lower investment returns, the underlying business remains resilient. 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 the Consumer business, and the underlying insurance trading ratio (UITR) remaining in the top half of the target operating range at 11.7%. The value and quality of Suncorp's brands, products and services continue to support customer growth, particularly across the Consumer portfolio which experienced Gross Written Premium (GWP) growth of 6.3% and unit growth of 2% in Motor and 0.4% in Home. The company's balance sheet and capital position remain strong, with the Board determining to pay a fully franked interim ordinary dividend of 17 cents per share, representing 68% of cash earnings. Suncorp is making good progress on its strategic imperatives to modernise its platforms and transform its operations by leveraging artificial intelligence at scale. The company has also completed $168 million of its on-market share buy-back program, with around $400 million expected to be completed over FY26. Looking ahead, GWP growth is expected to be around the bottom of the mid-single digits range, while the underlying ITR is expected to remain in the top half of the 10% to 12% range.

GWP growth expected to be around the bottom of the mid-single digit range, given the current cycle in Commercial in Australia and New Zealand. Underlying ITR expected to remain in the top half of the 10% to 12% range. Prior year reserve releases in CTP expected to be around 0.3% of Group net insurance revenue. Expense ratio expected to be approximately 50 basis points below FY25 with an increasing proportion allocated to growing the business.

Suncorp remains committed to delivering a growing business with a sustainable return on equity expected to be above the through-the-cycle cost of equity. The company will continue its disciplined approach to active capital management, with a payout ratio around the mid-point of the 60% - 80% range of cash earnings, and an on-market share buy-back of up to $400 million in total targeted to be completed by the end of FY26.