Latest news with #generalinsurer
Reuters
5 days ago
- Business
- Reuters
Insurer Suncorp's profit beats street view, launches $262 million buyback
Aug 14 (Reuters) - Australian insurer Suncorp ( opens new tab reported better-than-expected full-year cash earnings on Thursday, driven by improved insurance margins and higher investment returns, and announced a share buyback plan of up to A$400 million ($261.72 million). Suncorp, now a pure-play general insurer since exiting its banking and life insurance divisions, benefited from favourable natural hazard costs, improved margins on higher policy prices and increased returns on investments in the year ended June 30. The margin improvement was "driven by the earn through of price increases that reflected inflation and a higher natural hazards allowance, especially in Consumer and New Zealand," the Brisbane-based insurer said. Cash earnings for the year rose 8% to A$1.49 billion, beating the Visible Alpha consensus estimate of A$1.47 billion, while statutory profit soared 52% to A$1.82 billion on one-off gains from the sale of its banking unit. "The market should like the higher-than-expected share buy-back, while the small beat relative to consensus should also be received positively," Citi analysts wrote in a note. Suncorp's shares were trading over 3% higher at A$20.725 by 0030 GMT, after jumping as much as A$20.970 earlier in the day. The company's underlying insurance trading ratio, a key profitability indicator, ticked 8 basis points higher to 11.9% in the year to June 30, while its net investment returns jumped 16% to A$766 million. Natural hazard costs came in at A$1.36 billion, more than A$200 million below its allowance for the year. Suncorp's gross written premiums rose 6% to A$15.01 billion in 2025, and are expected to grow in mid-single digits in the current fiscal year. The underlying insurance trading ratio is targeted to be in the top half of the 10% to 12% range. The general insurer also announced an on-market share buyback of up to A$400 million, just six months after it returned A$4.1 billion capital return through share consolidation. It declared a final dividend of 49 cents per share. Earlier this month, Suncorp's rivals QBE Insurance and Insurance Australia Group also reported higher profits on the back of lower catastrophe claims and natural peril costs, as well as higher premiums. ($1 = 1.5284 Australian dollars)
Yahoo
5 days ago
- Business
- Yahoo
Insurer Suncorp's full-year profit up 8%, announces $262 million share buyback
(Reuters) -Australian insurer Suncorp reported a better-than-expected full-year cash earnings on Thursday, driven by improved underlying insurance margins and higher investment returns, and announced a share buyback plan of up to A$400 million ($261.72 million). The general insurer's underlying insurance trading ratio, a key profitability indicator, ticked 8 basis points higher to 11.9% in the year to June 30, while net investment returns jumped 16% to A$766 million. Natural hazard costs came in at A$1.36 billion, more than A$200 million below its allowance for the year. As a result, the general insurer's cash earnings jumped to A$1.49 billion for the year ended June 30, ahead of the Visible Alpha consensus estimate of A$1.47 billion and last year's A$1.37 billion. The Brisbane-headquartered firm declared a final dividend of 49 Australian cents per share, up from 44 Australian cents per share last year. ($1 = 1.5284 Australian dollars)
Yahoo
5 days ago
- Business
- Yahoo
Insurer Suncorp's full-year profit up 8%, announces $262 million share buyback
(Reuters) -Australian insurer Suncorp reported a better-than-expected full-year cash earnings on Thursday, driven by improved underlying insurance margins and higher investment returns, and announced a share buyback plan of up to A$400 million ($261.72 million). The general insurer's underlying insurance trading ratio, a key profitability indicator, ticked 8 basis points higher to 11.9% in the year to June 30, while net investment returns jumped 16% to A$766 million. Natural hazard costs came in at A$1.36 billion, more than A$200 million below its allowance for the year. As a result, the general insurer's cash earnings jumped to A$1.49 billion for the year ended June 30, ahead of the Visible Alpha consensus estimate of A$1.47 billion and last year's A$1.37 billion. The Brisbane-headquartered firm declared a final dividend of 49 Australian cents per share, up from 44 Australian cents per share last year. ($1 = 1.5284 Australian dollars) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Irish Times
08-08-2025
- Business
- Irish Times
FBD sees profits halve as claims soar due to Storm Éowyn and snowy January weather
FBD , the Republic's only indigenous general insurer, saw profits fall by almost half in the first six months of the year as claims soared due to Storm Éowyn in January. The group made €14.8 million over the period, which was down from just over €28 million over the same period of 2024. Insurance revenue was 10.6 per cent higher at €235.1 million, with gross written premium up 10.1 per cent at €248.9 million. There was growth across all sectors, channels and products. However, insurance service expenses almost doubled from €129.1 million to €257 million. READ MORE Claims increased by €96.1 million mainly reflecting poor weather experience in January due to Storm Éowyn and the January cold spell. FBD said it expects the January weather events to cost it €30.6 million. [ FBD expected to pay special dividend to bring recent payments to €234m Opens in new window ] The group also incurred insurance acquisition expenses of €45.4 million. Ordinary shareholders' funds amounted to €473.9 million at the end of the period, which was down from €483.2 million. The board has approved a special dividend of 75 cent per ordinary share. Policy count growth was 3.8 per cent across farmer, business and retail sectors, as farmer policy count increased by 5,700 policies on the same period last year. FBD said it is seeing 'strong acquisition and retention' relating to its home insurance offering with a 7 per cent increase in policy count. Retention rates 'remained consistently high', it said, while there was also 'strong new growth' in its business sector. Average premiums increased by 6.1 per cent across the portfolio with almost two-thirds of the increase put down to the change in mix and increasing liability and property coverage, as well as inflationary impacts. Private Motor average premium increased by 5.4 per cent, which the company attributed to 'high levels of inflation' as well as 'frequency' of claims over the past number of years. Home and farm average premiums increased by 9.3 per cent and 10 per cent respectively, reflecting increases in property sums insured, mostly through indexation, as rebuild costs continued to rise. The group described Storm Éowyn as 'an unprecedented weather event' setting new records for wind speeds at various locations. As of June, 90 per cent of claims notified had been fully resolved with the remainder progressing towards finalisation, FBD said. The company also noted that US president Donald Trump's so-called Liberation Day tariff announcements had 'caused stress' to financial markets. 'While progress on trade deals have helped markets recover, it may take some time for the economic damage already inflicted to manifest itself,' the group said. 'It is clear there has been a major shift in the global economic landscape and Ireland as a small open economy is particularly exposed to continued deglobalisation trends. 'The intent to rebalance the global taxation landscape in the US's favour poses risks to corporation tax receipts that are heavily reliant on US multi-nationals.' It said an escalation in these risks may impact on the group in the form of market, economic and inflation risk. The average cost of property claims increased by 3 per cent, and was 37 per cent higher compared to June 2021. This was due to disrupted supply lines, skills shortages, materials and parts inflation, the group said. Injury notifications decreased by 2 per cent year-on-year, but motor injury notifications were 7 per cent higher than prior year, with the majority of the increase relating to commercial motor cover. The average cost of injury claims settlements reduced by 1 per cent year-on-year. The injury settlement rate is up 7 per cent compared to 2024 driven by an increase in activity through the litigation channel. Motor damage notifications increased by 5 per cent compared, primarily driven by weather related damage claims. Group chief executive Tomás Ó Midheach said the first half of the year 'was not without challenge'. 'Severe weather events, including heavy snowfall in January and Storm Éowyn led to a significant surge in claims activity,' he said.
