Suncorp Confirms Full-Year Underlying Margin Guidance

By Alice Uribe

SYDNEY--Suncorp Group reaffirmed its fiscal 2024 margin guidance and finalized its reinsurance program for fiscal 2025.

The Australian general insurer on Friday said it continued to expect underlying margins for the 12 months through June to be around the middle of its previously disclosed 10%-12% range.

Suncorp also said its fiscal 2025 main catastrophe program would provide protection for losses of between 350 million Australian dollars (US$235.4 million) and A$6.75 billion. The limit in fiscal 2024 was A$6.40 billion.

The cost of the fiscal 2025 catastrophe reinsurance program is expected to be broadly in line with fiscal 2024, due to changes in its structure, Suncorp said.

Suncorp said it expected the natural hazard allowance for fiscal 2025 to increase to $1.57 billion from A$1.36 billion in the previous year.

"This reflects unit growth, continued inflationary pressures across the insurance industry, and increased risk retention resulting from the changes to the structure of the reinsurance program," the insurer said.

Suncorp said the final fiscal 2025 natural hazard allowance would be updated with its fiscal 2024 result announcement on Aug. 19.

Write to Alice Uribe at alice.uribe@wsj.com

(END) Dow Jones Newswires

July 04, 2024 19:09 ET (23:09 GMT)

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