Slide 1: Financial Results
Financial Results For the year ended 30 June 2024 19 August 2024 SUNCORP GROUP LIMITED | ABN 66 145 290 124
Slide 2: FY24 Overview
FY24 Financial Results 2 FY24 Overview Steve Johnston Group Chief Executive Officer
Slide 3: Group result
FY24 Financial Results 3 Group result Strong growth and margin Profit after tax from functions improvement Consumer ― Growth driven by unit growth and pricing $424m ( 112.0%) Commercial & Personal Injury ― Improved underlying margins $381m ( 14.0%) ― Positive investment returns driven by yield env
Slide 4: Result snapshot
FY24 Financial Results | 4 Result snapshot Strong top-line growth and underlying momentum across the Group Consumer Consumer Commercial Personal New General Insurance Insurance Insurance Injury Zealand Insurance Gross written Gross written Gross written Gross written Gross written Underlying premium
Slide 5: Factors driving insurance pricing and profitability
FY24 Financial Results 5 Factors driving insurance pricing and profitability NUMBER OF NATURAL HAZARD CLAIMS GROSS NATURAL HAZARD COSTS NOTES (‘000s) ($b) ― c.700,000 natural hazard claims over 5 years Neutral La Nina El Nino ― Gross natural hazard cost of c.$9b over 5 years ― $1b+ increase in natur
Slide 6: Suncorp Bank
FY24 Financial Results 6 Suncorp Bank NET PROMOTER SCORE HOME LENDING TURNAROUND TIMES1 BANK EMPLOYEE ENGAGEMENT (# of applications, working days) 77.2 6,000 25 65 8.5 52.6 5,000 20 60 4,000 8.0 15 3,000 55 10 13.3 2,000 7.5 50 1,000 5 -31.3 0 0 45 7.0 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY23 FY
Slide 7: Suncorp Bank
FY24 Financial Results 7 Suncorp Bank REPORTED PROFIT NET INTEREST MARGIN FY24 FY23 Change ($m) ($m) (%) 0.05% Net interest income 1,368 1,408 (2.8) 0.00% Other operating income (10) 17 na (0.04%) 0.04% 1.85% Operating expenses (804) (737) (9.1) Operating profit 554 688 (19.5) 1.80% Impairment relea
Slide 8: Bank sale completion
FY24 Financial Results 8 Bank sale completion TIMELINE NOTES 31 July 2024 Q4 2024 Q1 2025 ― Net proceeds materially unchanged at around $4.1 billion ― Intention remains to return the majority to shareholders Bank completion subject to the needs of the business, finalisation of completion accounts an
Slide 9: FY24 Financial Results
FY24 Financial Results 9 FY24 Financial Results Photo: Rylie Batt, Brand Ambassador Paralympian
Slide 10: General Insurance – underlying margin
FY24 Financial Results 10 General Insurance – underlying margin UNDERLYING MARGIN DRIVER ANALYSIS UITR CONTRIBUTION BY PORTFOLIO 12.0% 0.9% (0.8%) (0.4%) 11.1% (0.7%) 10.6% (0.1%) 1.3% 11.1% 1.2% (0.3%) 10.6% (0.6%) 0.5% 10.2% UISR 9.2% 8.2% FY23 Nat. Hazard Claims Expense Reserve Net NDAE FY24 FY23
Slide 11: General Insurance - natural hazards & reinsurance
FY24 Financial Results 11 General Insurance - natural hazards & reinsurance FY24 NATURAL HAZARDS VS ALLOWANCE FY25 REINSURANCE PROGRAM ($m) ($m) -125 6,750 New Zealand buydowns AUD350 1,560 1,360 1,235 NZD200 Main Catastrophe Cover Event 1st NZ 2nd NZ 500 FY24 Allowance FY24 Experience FY25 Allowanc
Slide 12: General Insurance – investment market impacts
FY24 Financial Results 12 General Insurance – investment market impacts UNDERLYING YIELD ON INSURANCE FUNDS (AUS) PORTFOLIO ASSET ALLOCATION 5.3% (% of total investment assets; June 2024) 5.2% 0.3% 0.5% 0.4% 5% 1.0% 5% 0.5% 13% 6% 0.7% 15% 21% $15.9b $1.5b 1.6% 3.9% 0.3% 3.2% 66% 0.4% 69% 1.0% (0.1%
Slide 13: Consumer
FY24 Financial Results 13 Consumer UISR WALK HOME AND MOTOR PORTFOLIO GROWTH 0.7% (versus pcp2) 15.9% 0.7% 13.5% 12.9% 1.5% 10.7% 9.9% 12.0% 8.1% 6.3% 8.9% 3.4% 2.8% 1.4% 2.1% 2.3% 2.1% 1.4% (0.6%) 0.6% 1H23 2H23 1H24 2H24 FY23 Expenses Natural Hazards Claims FY24 Motor Units Home Units Motor AWP Ho
Slide 14: Commercial & Personal Injury
FY24 Financial Results 14 Commercial & Personal Injury UISR WALK GWP WALK ($m) 67 97 1.3% 197 42 3,952 0.1% (2.6%) 3,549 FY23 Platform Commercial Compulsory Workers’ FY24 Business (Tailored lines) Third Party Compensation GWP growth 8.6% 14.9% 8.9% 10.3% 11.4% 12.9% NOTES 11.7% ― Strong topline grow
Slide 15: Queensland CTP
FY24 Financial Results 15 Queensland CTP SUNCORP MARKET SHARE 1 SCHEME PARTICIPANT PROFIT MARGIN 1 (rolling 3-month average at year end) 27% 29% 7% 7% 7% 7% 22% 23% 15% 22% 24% 25% 26% 16% 32% 26% 26% 25% 23% 3% 0% 44% 43% 43% 43% 53% -2% -1% -5% FY20 FY21 FY22 FY23 FY24 2019 2020 2021 2022 2023 QBE
Slide 16: New Zealand
FY24 Financial Results 16 New Zealand UNDERLYING INSURANCE SERVICES RESULT WALK GWP WALK (NZ$m) (NZ$m) 1 77 126 (274) 368 217 (75) 2,858 (61) 2,437 276 234 FY23 Insurance Natural Claims Expenses FY24 FY23 Home Motor Commercial Other FY24 Revenue Hazards and RI Growth 25.8% 20.7% 8.1% 2.6% 17.3% 2H24
Slide 17: Group operating expenses
FY24 Financial Results 17 Group operating expenses GROUP OPERATING EXPENSES1 NOTES ($m; excluding restructuring, ESL and TEPL) 2,489 ― General Insurance operating expense ratio fell 69 50 0.8pp to 13.9% driven by disciplined 2,295 97 management of run the business costs 28 48 ― Increase in growth re
Slide 18: Group capital
FY24 Financial Results 18 Group capital COMMON EQUITY TIER 1 CAPITAL HELD AT GROUP NOTES ($m) ― $203m of CET1 capital held at Group ― Capital benefit from change to risk appetite at the GI holding company level partly offset by capital retained in the business ― GI capital usage largely driven by gr
Slide 19: Strategy Update
Strategy Update 19 Strategy Update
Slide 20: Reshaping and simplifying
Strategy Update 20 Reshaping and simplifying Sale of Capital Exited Sale of New Zealand Sale of the Australian Sale of Resilium S.M.A.R.T and ACM underperforming Sale of RACTI joint Sale of Wealth Life business Suncorp Bank Sale Life business distribution business Parts portfolios venture Business a
Slide 21: FY25-27 priorities
Strategy Update 21 FY25-27 priorities PURPOSE Building futures and protecting what matters AMBITION To be the leading trans-Tasman insurer CONSUMER COMMERCIAL & PERSONAL INJURY PORTFOLIOS Motor Home Commercial Personal Injury New Zealand Best in Protection + Prevention Leadership in Claims Distribut
Slide 22: Purpose driven, delivering strong outcomes for the long term
Strategy Update 22 Purpose driven, delivering strong outcomes for the long term Delivering valued outcomes
Slide 23: Strategic Enablers
Strategy Update 23 Strategic Enablers PLATFORM MODERNISATION Pricing • Data • Policy Admin • Claims • Enterprise Better customer propositions Business agility Reduce complexity Enables innovation OPERATIONAL TRANSFORMATION Digitisation • Automation • Partnering • Artificial Intelligence • Best in cl
Slide 24: Financial settings
Strategy Update 24 Financial settings Financial guiderails Capital targets Investment proposition CET1 capital target UITR 10-12% operating range 1.025- 1.325x PCA A growing Strong risk Consistent payout ratio at the business adjusted returns mid-point of 60-80% range Divisional guiderails Strong an
Slide 25: Divisional strategies
Strategy Update 25 Divisional strategies Division Consumer Commercial & Personal Injury New Zealand Motor Home Commercial Personal Injury Intermediated Direct Portfolio Maintain #1 market #2 to #1 market #4 to #2 market Australian public and Growth through Growth through digital share share share pr
Slide 26: Outlook
FY24 Financial Results 26 Outlook
Slide 27: FY25 Outlook
FY24 Financial Results 27 FY25 Outlook ― GWP growth expected to be in the mid to high single digits as the reinsurance market stabilises and inflationary pressures ease slightly in some portfolios ― Underlying ITR towards the top of the 10 to 12% range supported by the continued earn through of elev
Slide 28: Questions
FY24 Financial Results 28 Questions
Slide 29: Important disclaimer
FY24 Financial Results 29 Important disclaimer This presentation contains general information which is current as at 19 August 2024. Information relating to Suncorp Bank financial results is current as at 31 July 2024. It is information given in summary form and does not purport to be complete. It i