• Elevated natural hazards costs impacted results
• Strong response to support customers
• Systematic progress on key strategic imperatives to enable portfolio growth
• Robust underlying margins reflect continued strategic portfolio optimisation
• Active capital management to drive shareholder returns

Suncorp Group Ltd reported its half-year results for the period ended 31 December 2025 (HY26). The results were substantially impacted by natural hazard events, especially in the Consumer portfolio, with nine separate events over $10 million. Despite the challenges, the company's strong brand portfolio demonstrated organic unit growth in both the Home and Motor portfolios. Growth is expected to accelerate in the second half across most portfolios. The underlying insurance trading ratio (UITR) was at the top end of the 10-12% target range, with the Consumer portfolio benefiting from lower reinsurance costs and the earn-through of pricing, partially offset by the natural hazard resilience buffer. The Commercial & Personal Injury (C&PI) portfolio was impacted by pricing pressure in property and repair costs in fleet, but with pricing-driven margin expansion in the Compulsory Third Party (CTP) portfolios. The New Zealand portfolio saw a reduction in UITR primarily driven by negative gross written premium (GWP) growth.GWP growth in the Consumer portfolio, including unit growth in both Home and Motor, and in AA Insurance in New Zealand, was strong. C&PI was supported by growth in CTP and Fleet, but Workers' Compensation was impacted by lower premium adjustments. The Commercial portfolios in Australia and New Zealand were impacted by the cycle and competitive pressures, albeit less than the market.The company's capital position remains strong, with $700 million excess to the mid-point of the Common Equity Tier 1 (CET1) target range. A fully franked ordinary dividend was declared in line with policy, and a $168 million on-market share buyback was completed, with a further $400 million targeted for FY26.Suncorp continues to make systematic progress on its key strategic imperatives, including the Digital Insurer program and the adoption of artificial intelligence (AI) capabilities. The company is well-positioned to leverage accelerating AI and GenAI technologies to drive brand and market advantage, operational scale, and enhanced customer experience.

Gross written premium (GWP) growth is expected to be around the bottom of the mid-single digit range for FY26, given the current cycle in Commercial in Australia and New Zealand. The underlying insurance trading ratio (UITR) is expected to be in the top half of the 10% to 12% range, supported by the continued earn-through of higher premium rates from prior periods in Consumer and C&PI, offset by the drag from New Zealand on group margins. Prior year reserve releases in CTP are expected to be around 0.3% of Group net insurance revenue. The expense ratio is expected to be approximately 50bps 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 maintain a disciplined approach to active capital management, with a payout ratio around the mid-point of the 60% - 80% range of cash earnings. An on-market share buyback of up to $400 million in total is targeted to be completed by the end of FY26, and Suncorp remains committed to returning capital in excess of the needs of the business to shareholders.