Suncorp Group Ltd

SUN: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$82.20	Ljdf	Wntbxrb

Suncorp: Positive Outlook as Rate Increases and Investment Income Outpace Claims Inflation

Nathan Zaia

Jan 30, 2024

We increase our fiscal 2024 profit forecast 4% after no-moat Suncorp provided a mostly positive update. Gross written premium, or GWP, growth ahead of the previous 10% guidance; natural hazard cost allowances unchanged; investment income benefiting from higher cash rates; and full-year margins expected to be at the midpoint of the 10%-12% guidance range. However, the short-term tailwinds are insufficiently material to move our AUD 13.50 per share fair value estimate.

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