Suncorp Group Limited · ASX:SUN
Suncorp — H1 FY2025 Earnings Presentation
22 slides from Suncorp's earnings presentation, Feb 12, 2025
Slide 1: Financial Results
Financial Results For the half year ended 31 December 2024 12 February 2025 SUNCORP GROUP LIMITED | ABN 66 145 290 124
Slide 2: 1H25 Overview
1H25 Financial Results 2 1H25 Overview Steve Johnston Chief Executive Officer
Slide 3: Purpose driven, delivering strong outcomes for the long term
1H25 Financial Results 3 Purpose driven, delivering strong outcomes for the long term Delivering valued outcomes
Slide 4: Simplified – resilient with capacity to invest
1H25 Financial Results 4 Simplified – resilient with capacity to invest Sale of the Australian Sale of Capital S.M.A.R.T Sale of Wealth Sale of New Zealand Life business and ACM Parts Business Sale of Suncorp Bank Life business Pure play Simplified Trans-Tasman Insurer UITR1 NATURAL HAZARD ALLOWANCE
Slide 5: Group result
1H25 Financial Results 5 Group result Delivering for customers and NET PROFIT CASH GI UNDERLYING shareholders AFTER TAX EARNINGS PROFIT AFTER TAX ― Result supported by benign natural hazard period, positive investment returns, $1,100m $860m $658m non-repeat of PY reserve strengthening and the gain o
Slide 6: Result snapshot
1H25 Financial Results | 6 Result snapshot Consumer Consumer Commercial Personal New General Insurance Insurance Insurance Injury Zealand Insurance Gross written Gross written Gross written Gross written Gross written Underlying premium premium premium premium premium insurance trading ratio Home Mo
Slide 7: Investment to drive customer outcomes
1H25 Financial Results 7 Investment to drive customer outcomes Improved Capacity to customer Invest outcomes Data CaPE - Home & Policy Admin Artificial Enterprise Motor Intelligence Personalised and More granular and Facilitating digital AI use cases focused Operational customisable product responsi
Slide 8: Factors driving insurance pricing and profitability
1H25 Financial Results 8 Factors driving insurance pricing and profitability COST OF NATURAL HAZARDS TAXES COLLECTED ON INSURANCE FOUR POINT PLAN FOR A MORE RESILIENT ($b) PRODUCTS AUSTRALIA ($b) +$1.1b 1 Improve public infrastructure 1.9 1.5 1.7 FY20 FY21 FY22 FY23 FY24 FY25 Provide subsidies to im
Slide 9: 1H25 Financial Results
1H25 Financial Results 9 1H25 Financial Results Jeremy Robson Chief Financial Officer
Slide 10: Result summary
1H25 Financial Results 10 Result summary GROUP P&L INVESTMENT PROPOSITION 1H25 1H24 Change ($m) ($m) (%) Consumer Insurance 423 203 108 Commercial & Personal Injury 208 $208 million 194 7 Profitable Strong and resilient Suncorp New Zealand 208 74 181 growth risk adjusted returns General Insurance pr
Slide 11: General Insurance – underlying margin
1H25 Financial Results 11 General Insurance – underlying margin UNDERLYING MARGIN DRIVER ANALYSIS UITR CONTRIBUTION BY PORTFOLIO 11.8% (0.3%) 11.8% 1.2% (0.5%) 10.2% (0.2%) 1.3% (0.1%) 1.3% 1.8% 10.2% (1.3%) 10.2% 8.1% 1H24 Nat. Hazard Claims Expense Reserve Net 1H25 1H24 Consumer Commercial Persona
Slide 12: Consumer
1H25 Financial Results 12 Consumer UITR WALK HOME AND MOTOR PORTFOLIO GROWTH 9.4% (0.4%) (versus pcp) 1.3% 15.9% 7.0% 2.0% 13.5% 12.9% (0.5%) 9.9% 10.2% 10.7% 12.0% 8.1% 8.9% 7.7% 8.9% 4.9% 2.8% 1.4% 2.1% 2.3% 2.1% 1.4% 0.6% 1.4% 0.0% (0.6%) 1H24 Natural Hazards Claims Expenses Investments 1H25 1H23
Slide 13: Commercial & Personal Injury
1H25 Financial Results 13 Commercial & Personal Injury UITR WALK – PORTFOLIO VIEW GWP WALK 14.7% ($m) (0.4%) 15 51 79 (4.3%) 40 2,090 1,905 10.0% 1H24 Platform Commercial Compulsory Workers’ 1H25 Business (Tailored lines) Third Party Compensation GWP growth 15.4% 9.7% 9.0% 5.6% 9.7% 11.6% 7.9% NOTES
Slide 14: New Zealand
1H25 Financial Results 14 New Zealand UITR WALK GWP WALK 19.8% (NZ$m) 0.4% 1,495 20 (7) 1 2.1% 70 1,411 7.2% 1H24 Home Motor Commercial Other 1H25 9.6% 0.5% 19.7% Growth 14.0% 5.6% (1.3)% 5.0% 6.0% NOTES ― Growth supported by pricing increases and unit growth in Consumer, partially 9.2% offset by mo
Slide 15: General Insurance - natural hazards, reinsurance and reserves
1H25 Financial Results 15 General Insurance - natural hazards, reinsurance and reserves 1H25 NATURAL HAZARDS VS ALLOWANCE NATURAL HAZARDS AND REINSURANCE ($m) 1,560 ― 1H25 Natural Hazards experience below allowance driven by favourability in both Australia and New Zealand ― Six natural hazards event
Slide 16: General Insurance – investment market impacts
1H25 Financial Results 16 General Insurance – investment market impacts UNDERLYING YIELD ON INSURANCE FUNDS (AUS) PORTFOLIO ASSET ALLOCATION 5.5% (% of total investment assets; December 2024) 5.2% 5.2% 0.5% 0.4% 0.3% 0.5% 0.3% 0.3% 4% 5% 0.6% 0.5% 0.5% 7% 14% 13% 16% $16.7b $1.5b 3.9% 4.0% 4.1% 70%
Slide 17: Operating expenses
1H25 Financial Results 17 Operating expenses GI OPERATING EXPENSES1 2 NOTES ($m; excluding restructuring, ESL and TEPL) ― Run the business expenditure broadly flat as management continued to focus on driving 54 operating efficiencies 5 ― Growth related expenditure increase primarily due to higher le
Slide 18: Suncorp Bank capital return
1H25 Financial Results 18 Suncorp Bank capital return RETURN OF BANK SALE PROCEEDS NOTES 14 February 17 February 5 March 14 March ― Successfully completed the sale of Suncorp Bank to ANZ on 31 July 2024 2025 2025 2025 2025 ― $4.1 billion to be returned to shareholders: Capital Special • $3.8 billion
Slide 19: Group capital
1H25 Financial Results 19 Group capital EXCESS COMMON EQUITY TIER 1 CAPITAL NOTES ($m) ― Refocus on excess CET1 to mid-point of targets (from CET1 held at Group) given changes to the composition of the (107) 4,878 (522) 353 (31) business 848 ― Bank capital release reflects net proceeds from the sale
Slide 20: FY25 Outlook
1H25 Financial Results 20 FY25 Outlook ― GWP growth expected to be in the mid to high single digits as pricing moderates in line with easing inflationary pressures in some portfolios, particularly in New Zealand ― Underlying ITR expected to remain towards the top of the 10 to 12% range ― FY25 natura
Slide 21: Questions
1H25 Financial Results 21 Questions
Slide 22: Important disclaimer
1H25 Financial Results 22 Important disclaimer This presentation contains general information which is current as at 12 February 2025. It is information given in summary form and does not purport to be complete. It is not a recommendation or advice in relation to Suncorp Group Limited (Suncorp) or a