Sydney, Feb 19, 2026, 17:47 AEDT — Activity in after-hours trading.
- Suncorp shares dipped again, following up on Wednesday’s drop after results landed.
- Natural hazard costs surged, dragging down half-year profit and cash earnings.
- The dividend’s been slashed, while the insurer pointed to additional buybacks ahead.
Suncorp Group (SUN.AX) slipped another 0.2% to close at A$15.25 on Thursday. That followed a heavy drop sparked by its half-year results a day earlier. (StockAnalysis)
ASX trading is done for the day, leaving Friday as the next test: does the stock bottom out, or do sellers keep pressing after a rough, storm-filled half?
The update from the insurer dropped as Australian general insurers wrestled with their usual pressures—weather claims climbing quickly, repair costs sticking, and premium increases lagging as they slowly filter through policies.
Suncorp reported profit after tax of A$263 million for the six months to Dec. 31, with cash earnings landing at A$270 million. That’s a steep drop from last year’s A$1.10 billion profit and A$828 million in cash earnings. CEO Steve Johnston pointed to the impact of nine declared natural hazard events, which led to more than 71,000 claims and a net cost of roughly $1.3 billion.
Gross written premium came in at A$7.689 billion before reinsurance. Suncorp’s board declared a fully franked interim dividend of 17 Australian cents per share, a drop from last year’s 41 cents. The insurer reported it had wrapped up A$168 million of its on-market buyback in the half, still aiming for roughly A$400 million by the close of fiscal 2026.
The blow was compounded by weaker investment income. As bond yields climb, reported returns often take a short-term hit—assets get marked down to reflect where markets are now.
On the call, CFO Jeremy Robson pushed back, arguing those “higher yields that gave rise to the 1H mark to market losses are a positive going forwards,” and noted Suncorp now sits with an “exit yield of nearly 5%.”
Analyst reactions diverged after the headline drop. Citi described the numbers as “largely in line,” while S&P Global Ratings, cited by Reuters, said Suncorp’s capital adequacy should remain “excellent” even with the storm losses. Reuters also noted Suncorp fell short of Visible Alpha’s cash earnings consensus and lowered its premium-growth target for fiscal 2026, now aiming for the lower end of the mid-single-digit range. (Reuters)
Investors in the sector are eyeing possible spillover effects for peers like Insurance Australia Group and QBE Insurance, as earnings season continues. Catastrophe allowances and pricing discipline are back under the microscope.
Still, a clear risk remains. A fresh round of harsh weather before year-end could quickly eat up reserves once more, and in some parts of New Zealand, competition makes raising premiums tough.
Traders now turn to Suncorp’s buyback activity after earnings, along with the interim dividend schedule—ex-dividend set for Feb. 23, payment coming March 31. The next big event: the full-year report, expected in August. (Market Index)
