Suncorp has reported a full year cash earnings result of more than 40 per cent, a 13.1 per cent jump in group net profit after tax (NPAT) and declared a special dividend for shareholders.
Steve Johnston, CEO of Suncorp Group, said that the 42.1 per cent increase in group cash earnings to $1.064 billion and the higher group NPAT of $1.033 billion demonstrated that Suncorp’s strategy of refocusing and simplification was gaining traction and paying off.
According to Suncorp, the improvement in FY21 earnings was driven by a strong result in its Australian insurance and banking divisions. Profit after tax for Insurance Australia increased 42.4 per cent to $547 million, with the bank reporting a 69 per cent increase to $419 million.
Suncorp said insurance in Australia delivered its best top-line growth since 2013, with overall gross written premium (GWP) up 5.5 per cent. New Zealand GWP grew by 9.2 per cent, but this was partially offset by higher natural hazard costs due to the La Nina weather pattern, a reduction in investment returns, and a normalisation in working claims.
Johnston said the motor, home and consumer insurance portfolios grew in the 12-month period, proving the overall strategy was working.
“In the Australian insurance business, the plan of attack we’ve had to reinvigorate our brands, to refine our customer value propositions and improve our marketing, are translating to stronger growth,” he said.
According to Suncorp, although the operating environment for insurers and banks, along with the health of the global economy, have improved since the COVID-19 pandemic began, the outlook remains uncertain.