Brokerages hike PT for Australia's Suncorp on new reinsurance cover

Suncorp

26/04/2026 22:41

** Brokerages raise their valuation for Suncorp Group SUN.AX after the general insurer on Friday said it secured reinsurance protection of up to A$2.4 billion ($1.71 billion) over 5 years

** Citi hikes target price to A$17.5 from A$16.75, maintains "neutral" call

** Says Suncorp has made a key step towards reducing its downside earnings volatility for the next 5 years

** Adds the impact of reduced earnings volatility also enables a modestly lower capital target, resulting in A$100 million capital release

** Brokerage upgrades EPS estimate by 3% for fiscal 2026 and 1% for fiscal 2027

** Jefferies raises price target to A$17.7 from A$16.5, retains "hold" tag

** Says new reinsurance layer limits hazard costs to co's allowance

** With volatility associated with natural hazard costs largely removed for the medium term, we believe Suncorp should trade on a higher multiple - Jefferies

** Suncorp down 3.4% YTD, as of last close

($1 = 1.4017 Australian dollars)

 (Reporting by Nikita Maria Jino in Bengaluru; Editing by Edmund Klamann)

 ((Nikita.Jino@thomsonreuters.com;))