Australian Insurer Suncorp's Profit Slumps on Storm Costs; Shares Slide

Australian insurer Suncorp's profit slumped in the first half of the year due to storm costs, causing its shares to slide. According to a report by Investing.com ^[2], Suncorp's first-half cash earnings plunged 67% from the same period a year ago. The company's profit before tax fell to $164.8 million, down from $499.5 million in the same period last year.

The decline in profit was largely due to the costs associated with the severe storms that hit Australia in the first half of the year. Suncorp's insurance business was severely affected by the storms, which led to a significant increase in claims.

The company's shares fell 3.5% to $13.45 in early trade on the Australian Securities Exchange (ASX). The decline in shares was a result of the company's disappointing earnings and the impact of the storms on its business.

Suncorp's results were in line with analyst expectations, but the company's guidance for the full year was lower than expected. The company's management attributed the decline in profit to the severe storms and the impact of the COVID-19 pandemic on its business.

The decline in Suncorp's profit is a concern for investors, as it may indicate a decline in the company's ability to pay dividends. The company's dividend yield is currently around 4.5%, which is higher than the average dividend yield of the ASX 200 index.

Investors are closely watching Suncorp's results, as the company is one of the largest insurers in Australia. The company's performance will have a significant impact on the Australian insurance market and the overall economy.

Sources

[2] Australian insurer Suncorp’s profit slumps on storm costs; shares slide