Suncorp (ASX:SUN) soars 42.1% in cash earnings

Company News

by Lauren Evans

Insurance company Suncorp (ASX:SUN) reports a strong year with cash earnings of $1,064 million for the period ending 30 Jun 2021 (FY21), up 42.1 per cent from the prior year.

The improvement was driven by increased profit after tax in Insurance Australia, up 42.4 per cent and Suncorp Bank up 69 per cent from the prior year. Profit in New Zealand fell by 18.4 per cent following increased natural hazard costs.

Group net profit after tax increased by 13.1 per cent from the prior year, to $1,033 million in FY21.

The board declared a fully franked final ordinary dividend of 40 cents per share, bringing total dividends for FY21 to 66 cents per share.

The financial impact of Covid-19 was broadly neutral, with lower motor claims frequency offset by additional provisioning for potential business interruption claims. 

Suncorp CEO Steve Johnston said, "despite the challenges of Covid-19, we have been in a position to support our customers, employees, shareholders and communities through this uncertain time."

Shares in Suncorp (ASX:SUN) are trading 6.8 per cent higher at $12.66.

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