Suncorp is reportedly facing a difficult year due to a high frequency of hazard events since July 1, according to Citi analysts. This increased activity has exposed the insurer’s lighter reinsurance cover relative to IAG. Suncorp provides insurance and banking services to customers across Australia and New Zealand. The company aims to provide quality products and services while also contributing to the community.
Analysts suggest that Suncorp’s current loss-affected status may restrict its options to acquire additional reinsurance mid-year. The adverse weather impact on profits is also expected to put downward pressure on its interim dividend payout. Citi estimates that Suncorp has already exceeded its first-half weather allowance by $453 million.
While Citi anticipates some recovery during the second half of the fiscal year, it still projects an adverse variance of $275 million for the full year 2026. Despite these weather-related challenges, Citi acknowledges Suncorp’s strong investment returns. It continues to forecast an underlying insurance trading ratio within the upper range of Suncorp’s guidance of 10–12 per cent for FY26.
Citi has revised its earnings per share (EPS) forecast for FY26 downward by 9 per cent. Forecasts for FY27 and FY28 have also been reduced by 1 per cent. The broker has lowered its price target for Suncorp to $18.50 from $19.25, while maintaining a neutral rating on the stock.
