Australia’s Suncorp shares rise on strong FY earnings, share buyback

Investing.com-- Shares in Australia’s Suncorp Group (ASX:SUN) rose on Thursday after the insurer reported a 52% jump in annual net profit due to favorable weather conditions, and announced a A$400 million share buyback.

Net profit after tax surged to A$1.82 billion ($1.19 billion) for the year ended June 30, up from A$1.20 billion a year earlier, driven by the sale of its banking arm and New Zealand Life unit, as well as lower-than-expected natural hazard costs.

The company declared a final dividend of 49 AU cents per share, bringing total FY25 payouts to 90 AU cents.

Sydney-listed shares of the company rose as much as 4.6% to A$2.97 as of 01:20 GMT.

Gross written premiums (GWP) for the period rose 6.3% to A$15.01 billion. Looking ahead, Suncorp expects GWP growth in the mid-single digits for FY26 as inflationary pressures ease.