Suncorp NZ profit falls 25% to $316m as weather claims and competition rise.
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Extreme weather events put a dent in Suncorp NZ's net profit in the June 2026 year.
Competition from overseas insurers, tough economic conditions and a higher-than-normal number of adverse weather events helped drive Suncorp NZ’s net profit down by 25% over the June year.
The company, New Zealand’s second-biggest insurer after IAG, reported a net profit of $316 million, down from $419m a year earlier.
Gross
written premium was $2756m, down 4.8% on the prior year, reflecting softer market conditions and customer pricing responding to modest inflation and lower reinsurance costs.
Chief executive Jimmy Higgins said Suncorp NZ had a “solid” result driven by disciplined underwriting.
“But this year’s result also reflects an increasing trend of more extreme and frequent weather events in New Zealand,” he said.
Suncorp NZ includes Vero Insurance and Vero Liability, which provide intermediated services via a network of brokers and corporate relationships.
It also has a joint venture direct-to-customer business AA Insurance, a joint venture between Vero Insurance and the New Zealand Automobile Association.
Natural hazard claims were elevated this year, above Vero’s annual allowance, following a series of major storms that had a significant impact on New Zealand communities.
“With forecasters expecting a strong El Nino to develop over the coming summer, different parts of the country could face a mix of stronger winds, drier conditions and heavier rainfall,” he said.
Jimmy Higgins, Suncorp New Zealand chief executive.
Over the year, Suncorp NZ continued to invest in its core pricing and underwriting systems, with new digital platforms designed to speed up claims processing and strengthen operational capability.
“Rapid innovation in areas like AI [artificial intelligence] gives us the opportunity to transform how we deliver insurance and respond faster when communities need us most,” Higgins said.
He told the Herald the company was seeing more competition from overseas, particularly from the likes of Lloyd’s.
“The state of the economy has not been great, which has meant we’ve seen a high number of insurance cancellations either due to companies folding or choosing to downsize their insurance purchase,” he said.
“Pricing has been under pressure for the last 12 months and that’s been the biggest contributor of the decline in revenue and/or profit.”
Adverse weather events had cost the company $100m more than had been budgeted for. Claims totalled $1.3 billion.
“We are seeing more frequent severe weather events in New Zealand and globally for that matter.”
Looking ahead, Higgins said he was upbeat about the next 12 months.
“Hopefully we will see businesses invest, make decisions and grow themselves.”
Suncorp NZ’s Queensland-based parent, Suncorp, reported net profit of A$1027m ($1235m), down 43.7%.
The previous year’s profit was inflated by asset sales.
Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.
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