ASX:SUN

Outlook for Australian General Insurers to Remain Driven by Moderating Premium Growth, Jefferies Says

The outlook for the Australian general insurers will remain driven by moderating premium growth, while share prices will likely reflect the sector's defensive characteristics, Jefferies said in a Wednesday note.Premium growth moderated in fiscal 2026 due to increased competition, affordability issues, and lower reinsurance costs. Commercial lines remain in a rate-reduction phase due to increased capacity, while domestic personal lines should remain positive due to persistent weather-related vulnerability.The sector's shares have performed well, with QBE Insurance Group (ASX:QBE) up 28% year-to-date, followed by Suncorp Group (ASX:SUN) at 6.5%, and Insurance Australia Group (ASX:IAG) 2.8%. Jefferies attributed the performance to the sector's defensive characteristics and earnings resilience.The investment firm retained the buy rating on Insurance Australia Group and raised the price target to AU$9.45 from AU$8.75. It downgraded QBE Insurance to hold from buy and raised the price target to AU$27.50 from AU$26.25. It retained the hold rating on Suncorp and raised the price target to AU$19.75 from AU$18.40.

Australian Shares Rise; Australia's Federal Court Approves ASX's AU$20.5 Million Settlement in Misleading Disclosure Case

Australian shares closed higher on Friday with investors now expecting the US Federal Reserve to keep interest rates steady after softer US jobs data.The S&P/ASX 200 Index rose 1.37%, or 119.80 points, to close at 8,844.30.On Thursday, the Dow Jones Industrial Average rose 1.1%, to set another record, reaching a fourth straight week of gains. Meanwhile, the S&P 500 was flat. The US nonfarm payrolls report showed the economy added 57,000 jobs in June, below the ​estimates for a rise of 110,000.Gold rose by over 1% to around $4,200 per ounce.On the domestic front, Australia's seasonally adjusted S&P Global Services purchasing managers' index (PMI) business activity index rose to 50.5 in June from 48.7 in May, signaling a marginal increase in business activity following a contraction in the previous month, according to a report by S&P Global.In company news, ASX (ASX:ASX) is set to pay a pecuniary penalty of AU$20.5 million for misleading disclosures in February 2022 over the progress of a technology upgrade project, Australia's Federal Court ruled. The case, brought by the Australian Securities and Investments Commission, centered on a claim by ASX that its CHESS Replacement Project was progressing well, even though the project was facing delays.Suncorp Group (ASX:SUN) placed its main catastrophe program for the fiscal year 2027, which maintains the maximum event retention of AU$350 million for a first and second large event, covering the home, motor, and commercial property portfolios across Australia and New Zealand. The firm's total reinsurance costs in fiscal year 2027 are expected to be higher than in fiscal year 2026.Genesis Minerals (ASX:GMD) reported gold production of 70,767 ounces for the June quarter, bringing fiscal year 2026 production to 285,400 ounces. The company said both production and all-in sustaining costs are within its fiscal year guidance range of 260,000 to 290,000 ounces at AU$2,500 to AU$2,700 per ounce.

Update: Suncorp Places Main Catastrophe Program for Fiscal Year 2027; Shares Fall 3%

(Updates to add stock movement in the headline and the last paragraph)Suncorp Group (ASX:SUN) placed its main catastrophe program for the fiscal year 2027, which maintains the maximum event retention of AU$350 million for a first and second large event, covering the home, motor, and commercial property portfolios across Australia and New Zealand, according to a Friday Australian bourse filing.Suncorp's five-year aggregate reinsurance arrangement began on June 30, with the aggregate cover providing AU$800 million of protection annually, up to AU$2.4 billion in total, over the five years. The fiscal 2027 attachment point for the aggregate cover is AU$1.85 billion.The catastrophe cover protects losses between AU$500 million and AU$6.4 billion, and includes one full prepaid reinstatement. Group dropdown covers for losses between AU$350 million and AU$500 million were purchased in relation to the third and fourth events.The firm's total reinsurance costs in fiscal year 2027 are expected to be higher than in fiscal year 2026, reflecting the inclusion of the aggregate reinsurance cover and exposure growth, partly offset by improved pricing in the main catastrophe program.Its total investment income for fiscal year 2026 is expected to be between AU$750 million and AU$800 million, compared with AU$1.23 billion in fiscal year 2025.Chief Executive Steve Johnston will return from medical leave effective July 6, while acting CEO Jeremy Robson will return to his role as Chief Financial Officer.The company's shares fell around 3% in recent Friday trade.

ASX Preview: Australian Shares Set to Gain After Dow Jones Record; BHP Group to Sell Arizona Property to Faraday Copper

Australian shares are poised to rise on Friday, tracking gains on Wall Street, where the Dow Jones Industrial Average index reached another record high.Overnight, the Nasdaq Composite fell 0.8%, while the Dow Jones Industrial Average rose 1.1%, to set another record, reaching a fourth straight week of gains. Meanwhile, the S&P 500 was flat. The US nonfarm payrolls report showed the economy added 57,000 jobs in June, below the ​estimates for a rise of 110,000.In the macroeconomy, Australia's seasonally adjusted S&P Global Services purchasing managers' index (PMI) business activity index rose to 50.5 in June from 48.7 in May, signaling a marginal increase in business activity following a contraction in the previous month, according to a report by S&P Global.In corporate news, BHP Group (ASX:BHP) struck a definitive deal to sell its San Manuel property in Arizona, US, to Faraday Copper in return for a 30% stake in Faraday at closing on a fully diluted basis. BHP is expected to hold 138 million Faraday common shares after the deal's closing, representing a 32.5% stake on a non-diluted basis, including shares it acquired through a private placement in March.Suncorp Group (ASX:SUN) placed its main catastrophe program for the fiscal year 2027, which maintains the maximum event retention of AU$350 million for a first and second large event, covering the home, motor, and commercial property portfolios across Australia and New Zealand. The firm's total reinsurance costs in fiscal year 2027 are expected to be higher than in fiscal year 2026.Genesis Minerals (ASX:GMD) reported gold production of 70,767 ounces for the June quarter, bringing fiscal 2026 production to 285,400 ounces. The company said both production and all-in sustaining costs are within its fiscal year guidance range of 260,000 to 290,000 ounces at AU$2,500 to AU$2,700 per ounce.Australia's benchmark index edged up 0.02% or 1.6 points to close at 8,724.50 on Thursday.

Suncorp Places Main Catastrophe Program for Fiscal Year 2027

Suncorp Group (ASX:SUN) placed its main catastrophe program for the fiscal year 2027, which maintains the maximum event retention of AU$350 million for a first and second large event, covering the home, motor, and commercial property portfolios across Australia and New Zealand, according to a Friday Australian bourse filing.Suncorp's five-year aggregate reinsurance arrangement began on June 30, with the aggregate cover providing AU$800 million of protection annually, up to AU$2.4 billion in total, over the five years. The fiscal 2027 attachment point for the aggregate cover is AU$1.85 billion.The catastrophe cover protects losses between AU$500 million and AU$6.4 billion, and includes one full prepaid reinstatement. Group dropdown covers for losses between AU$350 million and AU$500 million were purchased in relation to the third and fourth events.The firm's total reinsurance costs in fiscal year 2027 are expected to be higher than in fiscal year 2026, reflecting the inclusion of the aggregate reinsurance cover and exposure growth, partly offset by improved pricing in the main catastrophe program.Its total investment income for fiscal year 2026 is expected to be between AU$750 million and AU$800 million, compared with AU$1.23 billion in fiscal year 2025.Chief Executive Steve Johnston will return from medical leave effective July 6, while acting CEO Jeremy Robson will return to his role as Chief Financial Officer.

Inflation, Natural Disasters, Taxes Drive Cost of Australian Home Insurance, Jefferies Says

Inflation, natural disasters, and government taxes are driving up the cost of home insurance in Australia, resulting in insurers being accused of gouging, Jefferies said in a Wednesday note.Roughly 1.6 million households experience home insurance affordability stress, up 50% in just two years, spending 9.6 weeks of gross income to pay for home insurance, which is seven times higher than the non-stressed average.Government taxation is the second-largest component of Australian home insurance premiums, ranking just below natural disaster risk, with state and territory governments collecting about AU$8.90 billion in insurance taxes during fiscal year 2024-2025. The amount represents AU$1.6 billion more than the entire home insurance industry made in net profit after taxes in the same year, Jefferies said.With premium spikes in high-flood zones exceeding AU$7,000 to AU$30,000 a year, 70% of high-risk households with below-median incomes are impacted, resulting in 80% of high-risk properties completely uninsured for flood compared with a 60% insurance rate nationwide.Jefferies reaffirmed its buy rating and AU$8.75 price target on Insurance Australia Group (ASX:IAG), and also maintained its buy rating AU$26.25 price target on QBE Insurance Group (ASX:QBE).The firm has a hold rating on Suncorp Group (ASX:SUN) and an AU$18.40 price target.QBE Insurance Group shares rose 1% in morning trade on Thursday.

Australian General Insurers Positioned to Outperform, Says Jefferies

Australian general insurers are structurally positioned to outperform during a broad market sell-off, supported by stable demand, sturdy cash flows, and mandatory insurance requirements, Jefferies said in a note on Monday.The sector, known for its defensive characteristics and low volatility, is moderating from a period of rapid premium rate increases and rising US and Australian bond yields.Jefferies remains optimistic on the sector, banking on the defensive nature of domestic retail books, reinsurance protections, and higher bond yields.QBE Insurance Group (ASX:QBE) is seen as having the most leverage to rising interest rates, with a 1% increase in underlying yields significantly boosting earnings, as a large portion of its profits comes from investing insurance funds.Jefferies has a buy rating on QBE and raised its price target to AU$26.25 from AU$25.55.The investment firm further maintained the buy rating for Iinsurance Australia Group (ASX:IAG) with a raised price target of AU$8.75 from AU$8.50, and kept its hold rating on Suncorp (ASX:SUN) with a higher price target of AU$18.40 from AU$17.70.

Suncorp Group to Redeem Capital Notes 3 in June

Suncorp Group (ASX:SUN) will redeem all AU$389 million worth of its Suncorp capital notes 3 that are outstanding on the optional exchange date of June 17, according to a Monday filing with the Australian bourse.The notes were issued in December 2019, and their redemption has been approved by the Australian Prudential Regulation Authority, per the filing.Holders will be entitled to receive the face value of AU$100 per note plus the final distribution of AU$1.2674 per note for each note held on the June 2 record date.

Suncorp Group Completes AU$200 Million Subordinated Notes Issuance

Suncorp Group (ASX:SUN) completed a AU$200 million issue of unsecured subordinated notes in an offering to institutional and wholesale investors, according to a Wednesday filing with the Australian bourse.The notes due 2037 were issued at a margin of 150 basis points over the three-month bank bill swap rate.The company said it plans to use the proceeds to fund Tier 2 capital for entities within the Suncorp Group, and for general funding purposes.Suncorp Group shares were down 1% in recent Wednesday trade.

Suncorp Group Prices AU$200 Million Subordinated Notes Issue

Suncorp Group (ASX:SUN) has priced a AU$200 million issue of direct, unsecured, subordinated notes to institutional and wholesale investors, with the margin set at 150 basis points over the three-month bank bill swap rate, according to a Wednesday Australian bourse filing.The company said the notes have an 11-year term with a maturity date of June 1, 2037, with Suncorp holding the option to redeem or resell them on June 1, 2032, or any interest payment date thereafter, subject to Australian Prudential Regulation Authority approval, the filing added.The notes are expected to be issued on or around May 20, with proceeds to fund Tier 2 Capital of one or more regulated entities within the Suncorp Group, and for general funding and capital management purposes, the filing added.The company's shares rose 1% in recent Wednesday trade.

Suncorp Group Launches Australian Dollar-Denominated Tier 2 Subordinated Notes Offer

Suncorp Group (ASX:SUN) launched an offering of Australian dollar-denominated wholesale Tier 2 subordinated notes due 2037, expected to be priced on Wednesday, according to a same-day filing with the Australian bourse.The company expects to use the proceeds to fund Tier 2 capital within the Suncorp group and for general funding purposes, per the filing.The notes will be offered to institutional and wholesale investors at a minimum subscription amount of AU$500,000, with no right for holders to seek early redemption.

Morgans Financial Downgrades Suncorp Group to Hold from Accumulate; Price Target is AU$17.79

Suncorp Group Inches Up After Pricing AU$200 Million Capital Notes Issue

Suncorp Group (ASX:SUN) shares were marginally higher after the insurer said late Wednesday that it priced a AU$200 million issue of perpetual, noncumulative, convertible, unsecured, subordinated capital notes in an offering to institutional investors and other wholesale investors.The margin was set at 235 basis points over the three-month bank bill swap rate and was determined under a bookbuild process.The capital notes are expected to be issued on or around May 6, and no shareholder approval is needed for the issue.

Suncorp Group Launches Offer for Additional Tier 1 Capital Notes

Suncorp Group (ASX:SUN) launched an offer for Australian dollar-denominated perpetual, convertible notes to fund additional Tier 1 capital within the group, according to a Wednesday filing with the Australian bourse.The unsecured, subordinated notes will be offered to institutional and wholesale investors at a face value of AU$10,000 per note, with a potential minimum subscription amount of AU$500,000, per the filing.The notes are expected to be priced on Wednesday.

Suncorp Group Sees Improved Earnings Stability Under New Reinsurance Structure, Jefferies Says

Suncorp Group (ASX:SUN) will benefit from reduced earnings volatility and improved capital efficiency following its new five-year aggregate reinsurance program, though growth forecasts have been modestly revised lower, Jefferies said in an April 24 note.Jefferies noted that the new reinsurance program, starting June 30, provides AU$800 million in annual catastrophe protection and up to AU$2.4 billion over five years, capping natural hazard costs at budgeted levels in about 90% of scenarios and reducing earnings volatility from extreme weather.The equity research firm said that the company's revised framework raises its fiscal 2027 natural hazard allowance to AU$1.85 billion and ties it to exposure growth following a AU$453 million first-half 2026 overrun, with the impact broadly neutral.The research firm stated that, despite differing economics from its peers, the company's underlying insurance trading ratio outlook remains steady at 10% to 12% at the top end of its range, with reported earnings expected to better reflect underlying performance as catastrophe volatility eases.The research firm slightly revised its forecasts, cutting gross written premium growth to about 3% from 3.8% due to foreign exchange effects in New Zealand and updating investment income and valuation assumptions, with earnings estimates adjusted within a range of negative 3% to 1% over the forecast period.Jefferies maintained a hold rating on Suncorp Group and raised the price target to AU$17.70 from AU$16.50.

Australian Shares Flat; Suncorp Group Enters AU$2.4 Billion Reinsurance Deal

Australian shares were flat, with a negative bias, at Friday's close as markets faced uncertainty while the deadlock between the US and Iran continued in the Middle East.The S&P/ASX 200 Index was little changed to close at 8,786.50.Brent crude oil futures gained 1.2% to reach $106.3 per barrel. The Strait of Hormuz continued to be closed, and the US said it had carried out a "maritime interdiction" on an Iran-linked tanker.US President Donald Trump ordered the Navy to "shoot and ​kill" Iranian boats laying mines in the waterway.On the domestic front, Australia's trimmed mean inflation expectedly rose 0.9% quarter-on-quarter in the first quarter of the year, with a 3.6% year-on-year increase, according to a report by ANZ. The bank expects that the consumer price inflation rose 1.4% quarter on quarter and 4.1% year-on-year.The divergence between headline and trimmed mean inflation partly reflects the impact of higher fuel prices in March, the report added.In company news, Suncorp Group (ASX:SUN) has struck a reinsurance cover deal providing it with AU$800 million of protection annually and up to AU$2.4 billion in total protection over the agreement's five-year term. The agreement is effective June 30 and includes protection previously provided by Suncorp's existing dropdown arrangements below AU$350 million. Its shares rose over 4% on market close.Newmont (ASX:NEM) reported first-quarter adjusted earnings of $2.90 per share, up from $1.25 a year earlier. Sales for the three months ended March 31 reached $7.31 billion, compared with $5.01 billion a year earlier. Its shares closed up 1%.Lastly, Fortescue (ASX:FMG) reported total iron ore shipments of 48.4 million wet metric tonnes (wmt) during the third quarter ended March 31. The company recorded iron ore shipments of 46.1 million wmt for the quarter ended March 31, 2025. Its shares were down over 5% on market close.

Suncorp Group Establishes Wholesale Note Issuance Program; Shares Jump 5%

Suncorp Group (ASX:SUN) established a non-underwritten wholesale note issuance program for additional tier 1 capital notes and tier 2 subordinated notes, according to a Friday Australian bourse filing.The insurer will use the net proceeds for general funding and capital management purposes, including regulatory capital requirements of regulated entities in the group.The capital notes will constitute direct, unsecured, subordinated, perpetual obligations, per the filing. The subordinated notes will constitute its direct, unsecured, and subordinated debt obligations.Subordinated notes may bear interest at a fixed rate, floating rate or a fixed-to-floating rate.Suncorp Group's shares jumped nearly 5% in recent trading on Friday.

Suncorp Group Enters AU$2.4 Billion Reinsurance Deal

Suncorp Group (ASX:SUN) has struck a reinsurance cover deal providing it AU$800 million of protection annually and up to AU$2.4 billion in total protection over the agreement's five-year term, according to a Friday filing with the Australian bourse.The agreement is effective June 30 and includes protection previously provided by Suncorp's existing dropdown arrangements below AU$350 million, per the filing.The fiscal 2027 attachment point for the aggregate cover is AU$1.85 billion. The company said it expects the aggregate cover to effectively cap natural hazard costs at the attachment point in about 90% of scenarios in any year.The deal is also expected to reduce volatility in net claims costs, resulting in a one-off capital release of about AU$100 million "through a modestly lower capital target," the company said.Additionally, Suncorp expects its fiscal 2026 underlying insurance trading ratio to come in toward the upper end of its 10% to 12% guidance range. The company also said it now expects fiscal 2026 gross written premium growth of about 3%.It previously guided for gross written premium growth "around the bottom of the mid-single digit range," according to an earlier filing.