07/03/2025 09:27

Suncorp Group Ltd (SUN) $19.11

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14/02/2025 09:42

Suncorp Group Ltd (SUN) $19.68

SUN spiked to new highs following the insurer's strong result, with earnings ~11% ahead of consensus. However, this was driven by the big variable: lower claims, something that could adversely change with one weather event.

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12/02/2025 17:22

Suncorp (SUN) $20.62

SUN +1.33%: on first pass of the numbers, it looked a big beat from the insurer, earnings ~11% ahead of consensus however that was driven by a better claims experience, so of lower quality. The sale of their banking unit also provided a tailwind to numbers, and we got some clarity around the size and structure of capital management associated with the sale to ANZ.  

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12/12/2024 09:36

Suncorp Group Ltd (SUN) $18.92

SUN slipped 2.9% on Wednesday, underperforming its peers, who all closed lower. The prospect of lower interest rates moving forward did not help. Following the sale of its banking arm to ANZ, this insurer can focus on what it does best, but lower interest rates are not ideal for insurance companies that hold their premiums in interest-bearing bonds ahead of claims.

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29/11/2024 08:59

Suncorp Group Ltd (SUN) $19.67

SUN has been a strong performer since finalising the sale of its banking division to ANZ. We expect a combined capital return and a smaller special fully franked dividend of ~$3 in 2025. Together with next year's ordinary dividends, this represents around 22% of the current market cap, which has lifted the stock's appeal to local investors.

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06/09/2024 09:17

Suncorp Group Ltd (SUN) $17.75

We felt that SUN delivered an okay result in August, which has been reflected in the share price. Plus, some investors have probably already got their eyes set on the likely capital return post the bank sale in early 2025. SUN is popular with the analysts, with 4 Holds and 8 Buys, which may provide an opportunity into Christmas if we see another market dip.

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20/08/2024 09:31

Suncorp Ltd (SUN) $17.43

SUN advanced +1.3% after initially dipping by over 2% on Monday following an ok result for FY24; the insurer posted a 17% rise in annual cash earnings but forecast slower growth in fiscal 2025 gross written premiums that were in line with expectations as premium rates moderate and inflation eases.

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08/08/2024 09:38

Suncorp Group Ltd (SUN) $16.14

It’s very difficult to run both an insurance business and a bank successfully, while the more economically sensitive bank generally trading on a lower multiple to a pure insurance company, therefore weighing on the share price. We think the spin out of the bank to ANZ made total sense, and we now focus on SUN as a pure insurance business, with up to about $4bn in excess capital to return to shareholders. This may be quantified with the result along with the composition, i.e. a special div vs capital returns and this has the potential to significantly impact the share price.

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03/07/2024 09:13

Suncorp Group (SUN) $17.08

On top of the ANZ deal, in April, SUN announced the sale of its NZ Life business to Resolution Life for NZ$410m. We consider this an attractive move in both strategic and financial terms as it allows SUN to focus on its attractive general insurance (GI) operations. The simplicity of a GI model is appealing to investors and explains the premium trading multiple in IAG relative to SUN, i.e. we prefer the new SUN to IAG moving through FY25

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11/04/2024 09:26

Suncorp Group Ltd (SUN) $16.21

SUN has shed the burden of its banking arm to ANZ, allowing it to focus on what it does best: insurance. Shedding the load should be an easy transition for SUN, and with margins improving, the stock looks good, having rallied over +18% year-to-date, just like QBE. The stock still looks cheap compared to IAG after the sale of the banking assets. If/when we reconsider the sector, it will be under the MM microscope.

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