Australia's Suncorp gains most in over five years on outlook, new reinsurance cover

Suncorp

24/04/2026 01:42

** Shares of Australia's Suncorp SUN.AX rise as much as 10.2% to A$17.98, marking their biggest intraday pct gain since August 21, 2020; currently up 9.6%

** Stock hits its highest since November 28

** General insurer secures a reinsurance protection of up to A$2.4 billion ($1.71 billion) over 5 years

** Agreement expected to reduce overall volatility in net claims costs and drive a one-off capital release of about A$100 mln via reduction in capital target, co said

** With the new cover being slightly above co's natural hazard allowance, acting CEO Robson said "improvement in market conditions has now made the aggregate cover a viable part of the overall program" after a "harder reinsurance market cycle over the past few years"

** Co also projects an FY26 gross written premium growth of 3%

** Shares up 1.4% YTD

($1 = 1.4023 Australian dollars)

 (Reporting by Shruti Agarwal in Bengaluru)

 ((Shruti.Agarwal@thomsonreuters.com))