Highlights• Suncorp delivered FY2026 cash earnings of AU$1.042 billion, while net profit after tax came in at AU$1.027 billion.• Group gross written premium reached AU$15.407 billion, increasing 2.7%, as the Australian insurance businesses continued to expand.• Investors are set to receive final and special dividends totalling AU$0.62 per share, while Suncorp has also unveiled an on-market share buyback of up to AU$250 million.Why Are Suncorp Shares Attracting Attention?Suncorp Group Limited (ASX: SUN) has returned to investors’ radar after its share price advanced 3.2%, taking the current market price (CMP) to AU$19.150. The move followed the release of the insurer’s FY2026 numbers and plans to return additional capital to shareholders. Suncorp recorded cash earnings of AU$1.042 billion, alongside an after-tax net profit of AU$1.027 billion. Meanwhile, gross written premium climbed 2.7% to AU$15.407 billion, highlighting continued demand across the group’s insurance portfolio.What Is Driving the Insurance Business?The underlying business showed encouraging momentum, with underlying earnings rising 4.5%. Suncorp recorded an underlying insurance trading ratio of 11.8%, keeping performance toward the upper end of its 10%-12% target band.

Consumer Insurance generated gross written premium of AU$8.491 billion, following growth of 5.8%. Its underlying insurance trading ratio moved to 9.9% from 9.6%. Commercial & Personal Injury Insurance also expanded, with gross written premium rising 4.5% to AU$4.538 billion. Its underlying insurance trading ratio improved to 11.0% from 10.3%.

Weather events remained a key earnings pressure. Natural hazard costs totalled AU$2.024 billion, coming in AU$254 million above the allowance.Are Shareholder Returns Becoming the Bigger Story?Suncorp has strengthened its capital-return proposition with a fully franked final ordinary dividend of AU$0.52 per share, and a special dividend of AU$0.10 per share. This brings the combined final and special payout to AU$0.62 per share.

Adding another potential catalyst, management plans an on-market buyback of up to AU$250 million, with completion targeted by the end of FY2027.What Could Move SUN Shares Next?Looking into FY2027, Suncorp expects gross written premium to grow 3%-5%, while its underlying insurance trading ratio is targeted in the upper half of the 10%-12% range. The natural hazard allowance has also been lifted to AU$1.8 billion.

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