Suncorp Group (ASX:SUN) has adjusted its FY27 outlook, forecasting around 3% growth in gross written premiums. This revision comes after losing a $125 million annual commercial contract and facing a 70 basis point drag from a weaker New Zealand dollar. Despite these challenges, the company aims to keep its underlying insurance trading result margin in the top half of its 10-12% target range. CEO Steve Johnston credited the company's long-term performance to investments in modern software, data analytics, and artificial intelligence.
Among its peers, Insurance Australia Group (ASX:IAG) reported an underlying insurance margin of 15.6% for FY24, with gross written premium growth of 11.0% to $16.4 billion. QBE Insurance Group (ASX:QBE) posted an adjusted net profit after tax of US$1.4 billion for FY23, maintaining a combined operating ratio of 95.2%. Meanwhile, Tower (ASX:TWR) upgraded its full-year underlying net profit after tax guidance to between NZ$69 million and NZ$79 million, citing tighter risk-based pricing and lower-than-expected severe storm claims.
The broader market shows sensitivity to corporate contract retention and foreign exchange fluctuations. Major insurers are focusing on digital platform efficiency, disciplined risk-based pricing, and structured catastrophe exposure management to maintain profitability.