, Australia
/Ronaldo Santos from Pexels

Suncorp’s profits at risk, natural hazard costs and reinsurance expenses soar: Fitch Ratings

A modest decline in Suncorp's underwriting profitability is seen over the next 12 to 24 months.

Suncorp Group faces exposure to natural perils as a major home and motor insurer. Although profitability is supported by a robust reinsurance program, the higher frequency and severity of extreme weather events, along with rising reinsurance costs, have led to an increased natural hazard allowance, according to Fitch Ratings. 

Changes to the reinsurance program, especially higher net retention amid rising costs, could potentially impact Suncorp's profitability and capitalization.

Expectations include a modest decline in Suncorp's underwriting profitability over the next 12 to 24 months due to higher natural hazard costs and increased reinsurance expenses, offsetting strong premium rate increases. 

Suncorp's combined ratio deteriorated in FY23, reflecting higher claims ratios and increased natural hazard costs and reinsurance expenses.

On a positive note, Suncorp's net profit after tax increased in FY23, driven by a turnaround in investment income with higher reinvestment yields and strong performance across all divisions. 

ALSO READ: Suncorp sells banking arm to focus on insurance

The successful sale of the bank will allow Suncorp to focus on its core non-life insurance operation.

Suncorp's company profile is deemed 'favourable,' supported by a 'moderate/favourable' corporate governance rating compared to other Australian insurers. 

It is the second-largest non-life insurer in Australia and New Zealand, with a portfolio of established brands.

The sale of the bank will enable Suncorp to concentrate on its core non-life insurance business. 

Despite representing 71% of Suncorp's consolidated assets at FY23, the bank's contribution to net profit after tax from group functions was 35%, with the majority coming from Suncorp's insurance operation.

Financially, Suncorp maintains low financial leverage, with the financial leverage ratio at 13% at FY23.

 

Follow the link s for more news on

Analisa data, kunci kesuksesan AIA Indonesia dalam mengatasi penipuan

Prosedur operasional standar dan penyidik yang terlatih menjaga AIA Indonesia tetap terkendali.

CEO mengungkapkan bagaimana perusahaan-perusahaan Indonesia dapat fokus pada pertumbuhan di tengah regulasi baru

Sementara pasar menuju pertumbuhan, regulasi baru mempersempit keberadaan perusahaan asuransi.

Asei dan Seoul Guarantee teken MoU

Kerja sama ini bertujuan memperkuat jaminan dan asuransi kredit di Indonesia.

Fintech Indonesia melindungi 200.000 nasabah melalui kolaborasi Qoala & Sompo

JULO Protect Plus adalah perlindungan asuransi pertama yang embedded dalam solusi kartu kredit virtualnya.

bolttech, HAVA.id bermitra untuk perlindungan perangkat UKM

UKM  Indonesia juga dapat menikmati garansi perangkat tambahan selama 12 bulan.

Bagaimana Grandtag memberikan keamanan bagi orang terkaya di Asia

CEO regional Grandtag Financial mengungkap bagaimana 'asuransi jiwa jumbo' menarik UHNWI di Asia.

Asuransi Cina menganggap bijaksana untuk beralih ke investasi alternatif

Analisis melihat regulasi baru mendorong pergeseran konservatif saat asuransi mencari stabilitas di tengah pasar yang bergejolak.

Indonesia mempertimbangkan wajib asuransi TPL

Langkah ini didorong oleh meningkatnya jumlah kecelakaan di jalan raya.

Risiko reasuransi meningkat di Tokio Marine Indonesia

Sebagai perusahaan asuransi umum kecil di Indonesia, TMI memiliki pangsa pasar sebesar 2,1%.

Apakah ‘Londonisasi’ baik untuk pasar asuransi M&A Asia?

Para ahli industri membedah tingkat penggunaan yang rendah di wilayah ini untuk asuransi M&A meskipun semakin banyak pemain industri yang masuk ke arena ini.