Suncorp has posted a net profit after tax of $1.82 billion for the 2025 financial year, buoyed by strong gains in its consumer insurance arm – particularly the motor portfolio – alongside favourable weather outcomes and robust investment returns.
The group, which completed its transition to a pure-play general insurer following the sale of Suncorp Bank and its New Zealand life business, reported cash earnings of $1.49 billion, up 8.3 per cent on last year. Gross written premium (GWP) across the group rose 6.3 per cent to $15.0 billion, with consumer insurance contributing more than half at $8.14 billion.
Motor insurance remained a standout performer. The division achieved unit growth of 0.3 per cent and recorded solid average written premium increases, helping lift consumer insurance GWP by 8.2 per cent. Motor claims inflation, which had pressured results in recent years due to rising repair costs and supply chain bottlenecks, showed signs of moderation as repair capacity improved. Suncorp also reported faster claim turnaround times, with the average customer life of a motor claim cut by 13 days over the year.
Profit after tax for consumer insurance rose to $686 million, up sharply from $424 million in FY24. The improvement reflected not only premium growth in the motor and home portfolios but also favourable natural hazard experience relative to allowance, lower reserve strains, and strong investment income. The underlying insurance trading ratio for consumer insurance lifted from 8.1 per cent to 9.6 per cent.
Suncorp said it handled more than 120,000 natural hazard claims across Australia and New Zealand during the year, responding to 17 major weather events. Despite this, natural hazard costs of $1.36 billion came in $205 million below allowance. Claims paid across the group totalled $9.8 billion, including a significant share relating to motor vehicle incidents.
Digital adoption continues to transform the motor business. Seventy-eight per cent of home, motor and CTP sales were made online in FY25, while 70 per cent of customers impacted by ex-Tropical Cyclone Alfred lodged their claims digitally. Suncorp also introduced new AI-enabled claims tools and a dedicated motor vehicle valuation team to streamline assessments and reduce delays.
Group CEO Steve Johnston said the results highlighted both resilience and focus in the business.
“Motor remains a critical growth engine for Suncorp, with unit growth returning and claims handling times improving. The benefits of digital investment and supply chain efficiency are starting to flow through, supporting affordability for customers while maintaining margins,” he said.
Looking ahead, Suncorp expects gross written premium growth in the mid-single digits for FY26, with the motor division set to play a central role. Moderating inflation in repair costs is expected to ease pressures, while continued adoption of digital claims and AI-driven processes should support customer outcomes.
The board declared a fully franked final dividend of 49 cents per share, bringing total dividends to 90 cents for the year, and announced a $400 million on-market share buyback to commence in September.
With motor insurance at the core of its consumer division, Suncorp’s latest results underline the portfolio’s importance as the group advances its strategy as a dedicated trans-Tasman insurer.