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. SUN expects the general insurance gross written premium growth to be in the mid-to-high-single digits for the current fiscal year, largely in line with expectations. The company’s general insurance gross written premiums rose 14% to $14.1 billion in fiscal 2024, with price increases offsetting natural hazards and higher reinsurance costs.
- Cash profit came in at $1.37bn, +17% yoy and just under $1.4bn estimates.
- SUN recorded cash earnings of $1.37 billion for the full year ended June 30, 2024, higher than the $1.18 billion logged in the prior year.
- EPS for the FY ending June 30th rose to $1.07, compared to $0.9066 in the prior year—a miss with analysts looking for ~$1.09.
- Final dividend per share will be 44c fully franked.
The commentary was largely as expected, with the $4.1bn from the sale of its banking division likely to be returned to shareholders around the first quarter of 2025. Interestingly, as we said, SUN said general insurance premiums are set to rise this financial year by mid-to-high single-digit amounts; on the same day, Vanessa, our National Sales Manager, was questioning the Team about why her home and contents Insurance had doubled this year! Another frustrating inflationary effect for Michele Bullock to wrestle with.
MM is now short-term bullish towards SUN
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