Christine McLoughlin, AM Chairman

Christine McLoughlin, AM
Chairman

14 August 2025

Dear Shareholders,

As my decade-long service on the Suncorp Board draws to a close next month, I have reflected on the profound change across our economies, society, industry and business over this time. Rapid advancements in technology, widespread digitisation, evolving customer and regulatory expectations, workforce and supply chain shifts stemming from the pandemic, our changing climate and the energy transition have each contributed to the scale of change. I am proud of the way Suncorp has adapted to navigate this complexity to become the strong, purpose-led and resilient company it is today, well positioned to embrace the opportunities and tackle the challenges as it looks to the future as a digital-first, pure-play general insurer. 

#A more resilient, customer-centric business


FY25 will be remembered as a defining year for Suncorp. Following a significant simplification journey, Suncorp began its new chapter as a standalone Trans-Tasman general insurer, with an ongoing commitment to create value for our customers, communities and shareholders.

Having finalised the sale of Suncorp Bank, including the return of capital to shareholders, and subsequently the sale of our New Zealand Life insurance business, your Board was pleased to endorse Suncorp’s refreshed strategic plan, which firmly focusses the organisation on modernising at pace to deliver value for customers, at the same time addressing the critical issue of insurance affordability and accessibility. This continues to grow in importance and is exacerbated by ongoing cost of living challenges and the prevalence of extreme weather impacting our communities. 

Suncorp’s teams supported customers through 17 major weather events including severe flooding across North Queensland and the Mid-North Coast of New South Wales, as well as the impacts of ex-Tropical Cyclone Alfred in Australia and ex-Tropical Cyclone Tam and flooding in New Zealand. While the cost of these events for Suncorp remained within our natural hazard allowance for the year, the toll on our customers and communities is enduring. Suncorp’s significant investment in disaster management capability including a state-of-the-art Disaster Management Centre based in our Queensland headquarters, a fleet of mobile disaster response hubs and a new regional hub in Townsville has strengthened our ability to support customers and communities before, during and after severe weather events across Australia and New Zealand. 

#Navigating our landscape


Your Board remained focused on addressing Suncorp’s most material issues throughout the year. We continued to advocate with all levels of government, industry, and our communities to create meaningful change in building greater resilience to natural hazards, improving access to affordable insurance and managing the risks and opportunities that come with climate change. Importantly, this advocacy is backed by action and investment by Suncorp.

Technology including Artificial Intelligence continued as prominent areas of focus for Suncorp, ensuring the application is innovative, responsible and aligned with evolving governance expectations. Your Board also spent considerable time strengthening our cyber knowledge and business resilience to the ever-growing threat and sophistication of cyber attacks, including conducting comprehensive insight sessions and simulations.

The emphasis on building a skilled and adaptable workforce continues to grow in importance, particularly in the context of our digital transformation, with reskilling and upskilling programs now embedded across Suncorp.

Against a backdrop of heightened geopolitical uncertainty, ensuring financial and operational resilience remained a key focus for your Board throughout the year.

#Our performance and capital position


Suncorp delivered strong earnings in FY25, reflecting the one-off profits from the sale of Suncorp Bank ($252 million) and New Zealand Life Insurance ($99 million), positive net investment income of $766 million and a more favourable natural hazard experience, with costs $205 million below our allowance for the year. Suncorp’s net profit after tax for the financial year was $1,823 million, while cash earnings increased 8.3% to $1,486 million.

Your Board was pleased to deliver on its commitment to return $4.1 billion of net proceeds from the sale of Suncorp Bank to shareholders this year following receipt of all necessary approvals. As you know, this was returned through a $3.8 billion capital return and $0.3 billion fully franked special dividend, equating to $3.00 and $0.22 per share respectively, both paid in March 2025.

The Board has determined to pay a fully franked final ordinary dividend of 49 cents per share. This brings total fully franked ordinary dividends for FY25 to 90 cents per share. Suncorp’s full year dividend payout ratio of 70.8% of cash earnings is at the midpoint of the target payout ratio range of 60% to 80%. Payment will be made on 24 September 2025. 

Appropriate capital buffers have been maintained in line with our disciplined approach to the management of capital factoring in our operating environment. Our robust capital position has enabled Suncorp to announce an on-market share buy-back of up to $400 million, commencing in September 2025.

#Board renewal


Board renewal remains an ongoing priority to ensure optimal composition is maintained, including an appropriate mix of skills, experience and diversity to support our strategic priorities and effective governance as a Trans-Tasman insurer.

In February 2025, we welcomed David Whiteing to the Board as a non-executive director. David brings extensive financial services and contemporary technology and transformation experience, relevant for Suncorp’s next chapter as a dedicated general insurer which is underpinned by key technology investments. David will seek election at our Annual General Meeting (AGM) in September. 

As you know, I recently announced that I will retire from the Suncorp Board at the conclusion of this year’s AGM. Having fulfilled my commitment to finalise the complex sale of Suncorp Bank, including the return of capital to shareholders, and subsequently endorsing Suncorp’s strategic plan as a pure-play insurer, this is a logical time for change.

The Board has elected current non-executive director Duncan West as my successor. Duncan has served on Suncorp’s Board for almost four years, including as Chair of the Risk Committee and a member of the Audit Committee, and brings more than 40 years’ experience in the insurance and financial services sector. I am confident Duncan, together with our CEO Steve Johnston, will continue to lead the business successfully into its next chapter. The ongoing, measured renewal of Directors will remain a focus for Duncan and your Board. I am pleased that Ian Hammond and Sally Herman will each be standing for another term on the Board at the AGM. 

Suncorp New Zealand’s Chair David Flacks will also retire from the New Zealand Board following six years of service as Chair, and as a member of the Vero Insurance New Zealand and Vero Liability boards since 2013. On behalf of the Suncorp Board, I thank David for his leadership and valuable contribution and am pleased to announce that current New Zealand Board member Rob McDonald will assume the New Zealand Chair role from 1 September 2025.

#Farewell and thank you


It has been a great privilege to serve the Suncorp Board over the past decade, including as Chairman for the past seven years. I would like to extend my appreciation to my fellow Board members over this time for their counsel and support through the continued transformation of Suncorp. I wish Duncan and the Board well as they guide Suncorp through its next chapter.

I also thank and acknowledge the tireless efforts of our CEO Steve Johnston, who together with his executive team, can be credited for leading Suncorp through a period of significant change and challenge, including multiple major natural hazard events, the global pandemic and our material simplification program, while also preparing us for Suncorp’s next chapter as a Trans-Tasman pure-play general insurer. 

They have done so with determination and resilience, building momentum along the way and delivering for customers and shareholders. I extend this thanks to Suncorp’s employees across Australia and New Zealand for their dedication and unwavering support of our customers and communities. It is the people at Suncorp that define our culture and who live our purpose every day.

Finally, my deepest gratitude to our customers and shareholders for your loyal support and ongoing confidence in Suncorp. I look forward to seeing Suncorp continue to prosper as a fellow shareholder. 

Christine McLoughlin, AM 

Chairman