Suncorp Earnings: Premium Increases Expected to Improve Margins Despite Higher Claim Costs

No-moat Suncorp’s first-half results offered no surprises from the late January trading update. Half-year cash earnings for the insurer advanced 14% on the prior corresponding period to AUD 660 million, buoyed by double-digit premium rate increases and strong investment returns. Gross written premium increased 16%, reflecting home and motor policyholder growth of around 2% and significant premium increases in response to higher reinsurance costs, elevated natural hazards, and ongoing cost inflation. Net investment returns also served as a key contributor to earnings, more than doubling to AUD 396 million.