Full Year 2026 Suncorp Group Ltd Earnings Call

August 12, 2026

Speaker #1: To the strong underlying trajectory of the Suncorp business. We grew underlying earnings, we maintained margins at the top end of our target range, we improved our expense ratio, and we grew in almost all of our core portfolios.

Speaker #1: The strength of the business is also reflected in the balance sheet. And today we've announced a fully frank special dividend of 10 cents per share, and a further buyback of up to 250 million dollars.

Speaker #1: This brings to over 4.8 billion dollars of total capital that we've returned to shareholders over the past 3 years. Now, there are now 238 million fewer shares on issue today than there were 6 years ago.

Speaker #1: And all along, that improves the EPS and delivers for shareholders. But we've also continued to invest for the future. Across our technology platforms, our data systems, and our AI capabilities, we are building a simpler, more productive, and more scalable organization.

Speaker #1: And I'll come back to that later in the presentation. And in April this year, we announced the placement of an aggregate reinsurance protection, which will significantly, significantly reduce earnings volatility and strengthen the resilience of our business.

Speaker #1: Well, good morning and welcome, everyone—here in Sydney and variously around the world, on the line. So, let me begin by acknowledging the traditional owners of the lands on which we meet.

Steve Johnston: Well, good morning and welcome everyone, here in Sydney and variously around the world on the line. Let me begin by acknowledging the traditional owners of the lands on which we meet, and pay our respects to elders past and present. Today I am joined by our CFO, Jeremy Robson, to present the financial results for FY26. We will run through the presentation and other members of our leadership team will then join us for the Q&A session that follows. Let me start with some of the highlights of the result, and FY26 highlighted the strong underlying trajectory of the Suncorp business. We grew underlying earnings, we maintained margins at the top end of our target range, we improved our expense ratio, and we grew in almost all of our core portfolios.

Speaker #1: Now, that cover was the last that was on our to-do list post the sale of the bank and the building of the Pure Play insurer.

Speaker #1: And pay our respects to elders past and present. Today I'm joined by our CFO, Jeremy Robson, to present the financial results for FY26.

Speaker #1: That cover came into effect on 1 July, and we're also improved capital efficiency and underpins today's capital return. But finally, this result demonstrates that it's possible to deliver for both shareholders and customers.

Speaker #1: We'll run through the presentation, and other members of our leadership team will then join us for the Q&A session that follows. So let me start with some of the highlights of the results.

Speaker #1: With more than 10 billion dollars, a record paid out in claims, 2 billion of which were natural hazard related. That's 120,000 individual natural hazard claims where we have supported our customers in getting back into their homes and back on the road.

Speaker #1: And FY26 highlighted the strong underlying trajectory of the Suncorp business. We grew underlying earnings, maintained margins at the top end of our target range, improved our expense ratio, and grew in almost all of our core portfolios.

Speaker #1: So turning now to the headline result and the business delivered cash earnings of 1.04 billion dollars and NPAT of 1.03 billion. Now, this is a good outcome in a year where natural hazard costs exceeded our allowance by around 250 million dollars.

Speaker #1: The strength of the business is also reflected in the balance sheet. And today, we've announced a fully franked special dividend of $0.10 per share, and a further buyback of up to $250 million.

Steve Johnston: The strength of the business is also reflected in the balance sheet, and today we have announced a fully franked special dividend of AUD 0.10 per share and a further buyback of up to AUD 250 million. This brings to over AUD 4.8 billion of total capital that we have returned to shareholders over the past three years. There are now 238 million fewer shares on issue today than there were six years ago. All along that improves the EPS and delivers for shareholders. We have also continued to invest for the future. Across our technology platforms, our data systems, and our AI capabilities, we are building a simpler, more productive, and more scalable organization. I will come back to that later in the presentation.

Speaker #1: This brings us to over $4.8 billion of total capital that we've returned to shareholders over the past three years. There are now 238 million fewer shares on issue today than there were six years ago.

Speaker #1: Now, as I mentioned at the outset, given weather, asset sales, and mark-to-market noise, the best means of understanding the year-on-year performance of a general insurance business is through the underlying earnings.

Speaker #1: This metric increased by 4.5%, with our underlying insurance trading ratio ending the year at 11.8%. This has now the fifth consecutive period where the margin has been above 11%, which is a significant achievement in its own right, but that level of return now comes with increased resilience in the allowance, less reliance on reserve releases, and a transformative investment in the business.

Speaker #1: And I'll come back to that later in the presentation. In April this year, we announced the placement of an aggregate reinsurance protection, which will significantly, significantly reduce earnings volatility and strengthen the resilience of our business.

Steve Johnston: In April this year, we announced the placement of an aggregate reinsurance protection, which will significantly reduce earnings volatility and strengthen the resilience of our business. That cover was the last that was on our to-do list post the sale of the bank and the building of the Pure Play insurer. That cover came into effect on 1 July, and will also improve capital efficiency and underpins today's capital return. Finally, this result demonstrates that it is possible to deliver for both shareholders and customers with more than AUD 10 billion, a record paid out in claims, AUD 2 billion of which were natural hazard related. That is 120,000 individual natural hazard claims where we have supported our customers in getting back into their homes and back on the road.

Speaker #1: Investment yields remain strong, increasing to approximately 5% through the year and slightly higher at an exit point. Turning briefly to the balance sheet and the board has determined a final ordinary dividend of 52 cents per share, which is fully franked bringing the full-year ordinary dividend to 69 cents per share.

Speaker #1: Now, that cover was the last that was on our to-do list post the sale of the bank and the building of the pure-play insurer.

Steve Johnston: That cover was the last that was on our to-do list post the sale of the bank and the building of the Pure Play insurer. That cover came into effect on 1 July, and will also improve capital efficiency and underpins today's capital return. Finally, this result demonstrates that it is possible to deliver for both shareholders and customers with more than AUD 10 billion, a record paid out in claims, AUD 2 billion of which were natural hazard related. That is 120,000 individual natural hazard claims where we have supported our customers in getting back into their homes and back on the road. Turning now to the headline result, the business delivered cash earnings of AUD 1.04 billion and NPAT of AUD 1.03 billion. This is a good outcome in a year where natural hazard costs exceeded our allowance by around AUD 250 million.

Speaker #1: That cover came into effect on 1 July, and we'll also improve capital efficiency and underpin today's capital return. Finally, this result demonstrates that it's possible to deliver for both shareholders and customers.

Speaker #1: During the year, we also successfully completed our 400 million dollar previously announced on-market buyback, and that resulted in the cancellation of 23 million shares.

Speaker #1: With more than $10 billion, a record paid out in claims, $2 billion of which were natural hazard related. That's 120,000 individual natural hazard claims where we have supported our customers in getting back into their homes and back on the road.

Speaker #1: We've long maintained a disciplined approach to capital management. We didn't raise capital through COVID, and we've been progressively paying back to shareholders the proceeds of the simplification of this business.

Speaker #1: And we've been guided by the principle that capital in excess of the needs of the business should be returned to shareholders in the most efficient manner possible, including the repatriation of franking credits.

Speaker #1: So, turning now to the headline result, the business delivered cash earnings of $1.04 billion and NPAT of $1.03 billion. Now, this is a good outcome in a year where natural hazard costs exceeded our allowance by around $250 million.

Steve Johnston: Turning now to the headline result, the business delivered cash earnings of AUD 1.04 billion and NPAT of AUD 1.03 billion. This is a good outcome in a year where natural hazard costs exceeded our allowance by around AUD 250 million. As I mentioned at the outset, given weather, asset sales, and mark-to-market noise, the best means of understanding the year-on-year performance of a general insurance business is through the underlying earnings. This metric increased by 4.5%, with our underlying insurance trading ratio ending the year at 11.8%. This is now the fifth consecutive period where the margin has been above 11%, which is a significant achievement in its own right, but that level of return now comes with increased resilience in the allowance, less reliance on reserve releases, and a transformative investment in the business.

Speaker #1: That's why today we've announced our intention to further for a further 356 million dollars of excess capital through the 10 cent per share fully frank special and the on-market buyback of up to 250 million dollars through the course of FY27.

Steve Johnston: As I mentioned at the outset, given weather, asset sales, and mark-to-market noise, the best means of understanding the year-on-year performance of a general insurance business is through the underlying earnings. This metric increased by 4.5%, with our underlying insurance trading ratio ending the year at 11.8%. This is now the fifth consecutive period where the margin has been above 11%, which is a significant achievement in its own right, but that level of return now comes with increased resilience in the allowance, less reliance on reserve releases, and a transformative investment in the business. Investment yields remain strong, increasing to approximately 5% through the year and slightly higher at an exit point. Turning briefly to the balance sheet, the board has determined a final ordinary dividend of AUD 0.52 per share, which is fully franked, bringing the full year ordinary dividend to AUD 0.69 per share.

Speaker #1: This capital has been released through the placement of the aggregate reinsurance protection and the receipt of the deferred New Zealand life proceeds. Now, importantly, these returns are being delivered while maintaining a strong capital position, and while we continue to invest in the future of the business.

Speaker #1: This metric increased by 4.5%, with our underlying insurance trading ratio ending the year at 11.8%. This is now the fifth consecutive period where the margin has been above 11%, which is a significant achievement in its own right. But that level of return now comes with increased resilience in the allowance, less reliance on reserve releases, and a transformative investment in the business.

Speaker #1: So to the next slide, and here we focus on growth across the business. At an aggregate level, gross written premium increased by 2.7%. However, when you adjust for the foreign exchange impact, from the weaker New Zealand economy and the weaker New Zealand dollar, growth was 3.6%.

Speaker #1: Investment yields remain strong, increasing to approximately 5% through the year and slightly higher at an exit point. Turning briefly to the balance sheet, the Board has determined a final ordinary dividend of $0.52 per share, which is fully franked.

Steve Johnston: Investment yields remain strong, increasing to approximately 5% through the year and slightly higher at an exit point. Turning briefly to the balance sheet, the board has determined a final ordinary dividend of AUD 0.52 per share, which is fully franked, bringing the full year ordinary dividend to AUD 0.69 per share. During the year, we also successfully completed our AUD 400 million previously announced on-market buyback, and that resulted in the cancellation of 23 million shares. We have long maintained a disciplined approach to capital management. We did not raise capital through COVID, and we have been progressively paying back to shareholders the proceeds of the simplification of this business. We have been guided by the principle that capital in excess of the needs of the business should be returned to shareholders in the most efficient manner possible, including the repatriation of franking credits.

Speaker #1: In consumer mid-single digit growth, we're supported by both pricing and organic unit growth. Reflecting the strength of our brands and the value that customers place on our products.

Speaker #1: Importantly, we've continued to leverage our pricing and risk selection capabilities to improve the portfolio quality, growing in lower risk segments. Commercial and personal injury also delivered growth across all portfolios.

Speaker #1: Bringing the full-year ordinary dividend to $0.69 per share. During the year, we also successfully completed our $400 million previously announced on-market buyback, and that resulted in the cancellation of 23 million shares.

Steve Johnston: During the year, we also successfully completed our AUD 400 million previously announced on-market buyback, and that resulted in the cancellation of 23 million shares. We have long maintained a disciplined approach to capital management. We did not raise capital through COVID, and we have been progressively paying back to shareholders the proceeds of the simplification of this business. We have been guided by the principle that capital in excess of the needs of the business should be returned to shareholders in the most efficient manner possible, including the repatriation of franking credits. That is why today we have announced our intention for a further AUD 356 million of excess capital through the AUD 0.10 per share fully franked special, and the on-market buyback of up to AUD 250 million through the course of FY27. This capital has been released through the placement of the aggregate reinsurance protection and the receipt of the deferred New Zealand Life proceeds.

Speaker #1: In CTP, portfolio growth was driven by the pricing increases that were implemented across key schemes. But particularly in Queensland. Where we've been talking for many, many periods about the need for reform in that Queensland CTP scheme, and that has come through, and the advocacy position that we've held for many periods is now being played through in the margin.

Speaker #1: In New Zealand, our direct AA business continues to grow. In both units and AWP, across the home and motor portfolios. The intermediated business performance reflects a softer commercial market conditions.

Speaker #1: That's why today we've announced our intention to return a further $356 million of excess capital through the $0.10 per share fully franked special dividend and the on-market buyback of up to $250 million through the course of FY27.

Steve Johnston: That is why today we have announced our intention for a further AUD 356 million of excess capital through the AUD 0.10 per share fully franked special, and the on-market buyback of up to AUD 250 million through the course of FY27. This capital has been released through the placement of the aggregate reinsurance protection and the receipt of the deferred New Zealand Life proceeds. These returns are being delivered while maintaining a strong capital position and while we continue to invest in the future of the business. To the next slide, here we focus on growth across the business. At an aggregate level, gross written premium increased by 2.7%. However, when you adjust for the foreign exchange impact from the weaker New Zealand economy and the weaker New Zealand dollar, growth was 3.6%.

Speaker #1: The exit of a brokered book of business and a weaker economic backdrop. Now, Jeremy will run through the GWP outcomes in significantly more detail in just a moment.

Speaker #1: This capital has been released through the placement of the aggregate reinsurance protection and the receipt of the deferred New Zealand life proceeds. Now, importantly, these returns are being delivered while maintaining a strong capital position and while we continue to invest in the future of the business.

Speaker #1: And finally, this slide provides a summary of the support that we've provided to our customers over a very active year for natural hazards. While these events impact our financial results, they represent something much more significant for the customers and the communities that have been affected.

Steve Johnston: These returns are being delivered while maintaining a strong capital position and while we continue to invest in the future of the business. To the next slide, here we focus on growth across the business. At an aggregate level, gross written premium increased by 2.7%. However, when you adjust for the foreign exchange impact from the weaker New Zealand economy and the weaker New Zealand dollar, growth was 3.6%. In Consumer, mid-single digit growth was supported by both pricing and organic unit growth, reflecting the strength of our brands and the value that customers place on our products. Importantly, we have continued to leverage our pricing and risk selection capabilities to improve the portfolio quality, growing in lower risk segments. Commercial and Personal Injury also delivered growth across all portfolios.

Speaker #1: Moving on to the next slide, here we focus on growth across the business. At an aggregate level, gross written premium increased by 2.7%. However, when you adjust for the foreign exchange impact from the weaker New Zealand economy and the weaker New Zealand dollar, growth was 3.6%.

Speaker #1: Across Australia and New Zealand, we responded to 18 declared natural hazard events, which generated more than 2 billion dollars in net natural hazard claims costs, but required a significant mobilization of our people and our response capabilities.

Speaker #1: In consumer, mid-single-digit growth was supported by both pricing and organic unit growth, reflecting the strength of our brands and the value that customers place on our products.

Steve Johnston: In Consumer, mid-single digit growth was supported by both pricing and organic unit growth, reflecting the strength of our brands and the value that customers place on our products. Importantly, we have continued to leverage our pricing and risk selection capabilities to improve the portfolio quality, growing in lower risk segments. Commercial and Personal Injury also delivered growth across all portfolios. In CTP, portfolio growth was driven by the pricing increases that were implemented across key schemes, but particularly in Queensland, where we have been talking for many, many periods about the need for reform in that Queensland CTP scheme, and that has come through. The advocacy position that we have held for many periods is now being played through in the margin. In New Zealand, our direct AA business continues to grow in both units and AWP across the home and motor portfolios.

Speaker #1: I've had the opportunity as have all the members of the leadership team had the opportunity to visit a number of these communities over the course of the year, and every time we're reminded of the critical role our people play in helping customers recover and to rebuild.

Speaker #1: Importantly, we've continued to leverage our pricing and risk selection capabilities to improve portfolio quality, growing in lower-risk segments. Commercial and personal injury also delivered growth across all portfolios.

Speaker #1: Now, what always stands out to us isn't just the scale of the event, but the commitment that our teams make on the ground to support customers at what is often the most difficult time in their lives.

Speaker #1: In CTP, portfolio growth was driven by the pricing increases that were implemented across key schemes, but particularly in Queensland. We have been talking for many, many periods about the need for reform in that Queensland CTP scheme, and that has come through. The advocacy position that we've held for many periods is now being played through in the margin.

Steve Johnston: In CTP, portfolio growth was driven by the pricing increases that were implemented across key schemes, but particularly in Queensland, where we have been talking for many, many periods about the need for reform in that Queensland CTP scheme, and that has come through. The advocacy position that we have held for many periods is now being played through in the margin. In New Zealand, our direct AA business continues to grow in both units and AWP across the home and motor portfolios. The intermediated business performance reflects the softer commercial market conditions, the exit of a brokered book of business, and a weaker economic backdrop. Jeremy will run through the GWP outcomes in significantly more detail in just a moment. Finally, this slide provides a summary of the support that we have provided to our customers over a very active year for natural hazards.

Speaker #1: Our ability to respond effectively is the result of years of investment in disaster management capability, in technology and claims operations, and in community engagement.

Speaker #1: And with that, let me hand over to Jeremy, and I'll come back after that.

Speaker #1: In New Zealand, our direct AA business continues to grow in both units and AWP, across the home and motor portfolios. The intermediated business performance reflects softer commercial market conditions.

Speaker #2: All right. Thanks very much, Steve, and good morning, everyone. I'd like to start by reinforcing a few of the key FY26 financial highlights for you.

Steve Johnston: The intermediated business performance reflects the softer commercial market conditions, the exit of a brokered book of business, and a weaker economic backdrop. Jeremy will run through the GWP outcomes in significantly more detail in just a moment. Finally, this slide provides a summary of the support that we have provided to our customers over a very active year for natural hazards. While these events impact our financial results, they represent something much more significant for the customers and the communities that have been affected. Across Australia and New Zealand, we responded to 18 declared natural hazard events, which generated more than AUD 2 billion in net natural hazard claims costs, but required a significant mobilization of our people and our response capabilities.

Speaker #1: The exit of a brokered book of business and a weaker economic backdrop. Now, Jeremy will run through the GWP outcomes in significantly more detail in just a moment.

Speaker #2: As Steve said, the results reflect a strong underlying performance. Underlying earnings were up 4.5%, with underlying ITR of 11.8% at the top end of our range.

Speaker #2: We delivered mid-single digit or stronger growth across most portfolios, that's home and motor, fleet, workers' comp, CTP, and then AA in New Zealand. All be it acknowledging it was partially offset by the weaker commercial cycle and the weaker New Zealand dollar.

Steve Johnston: While these events impact our financial results, they represent something much more significant for the customers and the communities that have been affected. Across Australia and New Zealand, we responded to 18 declared natural hazard events, which generated more than AUD 2 billion in net natural hazard claims costs, but required a significant mobilization of our people and our response capabilities. I have had the opportunity, as have all the members of the leadership team, had the opportunity to visit a number of these communities over the course of the year, and every time we are reminded of the critical role our people play in helping customers recover and to rebuild. What always stands out to us is not just the scale of the event, but the commitment that our teams make on the ground to support customers at what is often the most difficult time in their lives.

Speaker #1: Across Australia and New Zealand, we responded to 18 declared natural hazard events, which generated more than $2 billion in net natural hazard claims costs, and required a significant mobilization of our people and our response capabilities.

Speaker #2: Our expense ratio reduced 50 basis points, reflecting our ongoing control of costs, at the same time as investing in the business. And then we delivered strong prior year reserve releases, of nearly 160 million dollars.

Speaker #1: I've had the opportunity, as have all the members of the leadership team, to visit a number of these communities over the course of the year.

Steve Johnston: I have had the opportunity, as have all the members of the leadership team, had the opportunity to visit a number of these communities over the course of the year, and every time we are reminded of the critical role our people play in helping customers recover and to rebuild. What always stands out to us is not just the scale of the event, but the commitment that our teams make on the ground to support customers at what is often the most difficult time in their lives. Our ability to respond effectively is a result of years of investment in disaster management capability, in technology, in claims operations, and in community engagement. With that, let me hand over to Jeremy, and I will come back after that.

Speaker #2: We've continued, as Steve said, to demonstrate disciplined capital management. We announced today the fully frank special dividend of 10 cents per share, and an FY27 buyback of up to 250 million dollars, and that, of course, is on top of the 400 million dollars already completed in FY26.

Speaker #1: Every time, we're reminded of the critical role our people play in helping customers recover and rebuild. What always stands out to us isn't just the scale of the event, but the commitment that our teams make on the ground to support customers at what is often the most difficult time in their lives.

Speaker #2: Pro forma for these items, we still retain 162 million dollars of CET1 above the midpoint of our range. And then finally, we've further enhanced our earnings resilience with the purchase of aggregate reinsurance cover for the next five years, as well as implementing some investment hedges.

Speaker #1: Our ability to respond effectively is the result of years of investment in disaster management capability, technology and claims operations, and community engagement.

Steve Johnston: Our ability to respond effectively is a result of years of investment in disaster management capability, in technology, in claims operations, and in community engagement. With that, let me hand over to Jeremy, and I will come back after that.

Speaker #1: And with that, let me hand over to Jeremy, and I'll come back after that.

Speaker #2: These add to the existing resilience features, including the buffer in our natural hazard allowance, further protecting against downside risk, while delivering significant upside opportunity in favorable weather periods.

Speaker #2: All right. Thanks very much, Steve, and good morning, everyone. I'd like to start by reinforcing a few of the key FY26 financial highlights for you.

Jeremy Robson: All right. Thanks very much, Steve, and good morning, everyone. I would like to start by reinforcing a few of the key FY26 financial highlights for you. As Steve said, the results reflect a strong underlying performance. Underlying earnings were up 4.5%, with underlying ITR of 11.8% at the top end of our range. We delivered mid-single digit or stronger growth across most portfolios. That is Home and Motor, Fleet, Workers' comp, CTP, and then AA in New Zealand, albeit acknowledging it was partially offset by the weaker commercial cycle and the weaker New Zealand dollar. Our expense ratio reduced 50 basis points, reflecting our ongoing control of costs at the same time as investing in the business. We delivered strong prior-year reserve releases of nearly AUD 160 million. We have continued, as Steve said, to demonstrate disciplined capital management.

Speaker #2: And then we continue to expect to deliver margins in the top half of our range. So let's get into the results in more detail, and start with underlying margin.

Speaker #2: As Steve said, the results reflect a strong underlying performance. Underlying earnings were up 4.5%, with underlying ITR of 11.8%, at the top end of our range.

Speaker #2: The underlying ITR, as I said, was 11.8%, remaining at the top end of the 10 to 12% range. On a portfolio basis, consumer delivered an underlying ITR of 9.9%, modestly up from FY25, as our pricing continues to reflect inflation.

Speaker #2: We delivered mid-single-digit or stronger growth across most portfolios—that's home and motor, fleet, workers' comp, CTP, and then AA in New Zealand. Albeit acknowledging it was partially offset by the weaker commercial cycle and the weaker New Zealand dollar.

Speaker #2: Commercial and personal injury margin increased to 11%, supported by pricing improvements in CTP and workers' comp, offset by some pressure in property, as well as the impact of ongoing remediation and elevated fire claims in platforms.

Speaker #2: Our expense ratio reduced by 50 basis points, reflecting our ongoing control of costs, even as we continue to invest in the business. And then we delivered strong prior year reserve releases of nearly $160 million.

Speaker #2: New Zealand margins contracted, taking into account internal reinsurance, but still remain strong, despite moderating towards target levels in the second half, as a softer pricing earned through.

Speaker #2: We've continued, as Steve said, to demonstrate disciplined capital management. We announced today the fully franked special dividend of $0.10 per share, and an FY26 buyback of up to $250 million.

Speaker #2: Now, looking ahead to FY27, as I said, we expect to continue to deliver an underlying margin in the top half of our range. Pricing will continue to reflect claims inflation in home and motor, orbit margin is expected to moderate within guide rails.

Jeremy Robson: We announced today the fully franked special dividend of AUD 0.10 per share and an FY27 buyback of up to AUD 250 million. That, of course, is on top of the AUD 400 million already completed in FY26. Pro forma for these items, we still retain AUD 162 million of CET1 above the midpoint of our range. Finally, we have further enhanced our earnings resilience with the purchase of aggregate reinsurance cover for the next five years, as well as implementing some investment hedges. These add to the existing resilience features, including the buffer in our natural hazard allowance, further protecting against downside risk while delivering a significant upside opportunity in favorable weather periods. We continue to expect to deliver margins in the top half of our range. Let us get into the results in more detail and start with underlying margin.

Speaker #2: And that, of course, is on top of the $400 million already completed in FY26. Pro forma for these items, we still retain $162 million of CET1 above the midpoint of our range.

Speaker #2: And then the benefit of ongoing remediation in platforms and pricing in CTP is expected to be partially offset, by New Zealand moderating to target levels, as I said.

Speaker #2: And then finally, we've further enhanced our earnings resilience with the purchase of aggregate reinsurance cover for the next five years, as well as implementing some investment hedges.

Speaker #2: The FY27 margin outlook includes the additional premium for aggregate cover. Now, importantly, this will be broadly offset, by a combination of expected profit commissions, reinsurance savings on the main cap program, loss ratio initiatives, and some pricing response in select portfolios.

Speaker #2: These add to the existing resilience features, including the buffer in our natural hazard allowance, further protecting against downside risk while delivering a significant upside opportunity in favorable weather periods.

Speaker #2: These dynamics are expected to result in a slight skew of the margin towards the second half. Moving then to the divisional results, and we'll start with consumer.

Speaker #2: And then we continue to expect to deliver margins in the top half of our range. So, let's get into the results in more detail and start with underlying margin.

Speaker #2: The underlying ITR, as I said, was 11.8%, remaining at the top end of the 10% to 12% range. On a portfolio basis, Consumer delivered an underlying ITR of 9.9%, modestly up from FY25, as our pricing continues to reflect inflation.

Jeremy Robson: The underlying ITR, as I said, was 11.8%, remaining at the top end of the 10% to 12% range. On a portfolio basis, consumer delivered an underlying ITR of 9.9%, modestly up from FY25 as our pricing continues to reflect inflation. Commercial and personal injury margin increased to 11%, supported by pricing improvements in CTP and workers' comp, offset by some pressure in property, as well as the impact of ongoing remediation and elevated fire claims in platforms. New Zealand margins contracted, taking into account internal reinsurance, but still remain strong despite moderating towards target levels in the second half as the softer pricing earned through. Looking ahead to FY27, as I said, we expect to continue to deliver an underlying margin in the top half of our range. Pricing will continue to reflect claims inflation in home and motor, albeit margin is expected to moderate within guardrails.

Speaker #2: Motor GWP increased 5.8%, reflecting input cost inflation. GWP growth was similar in both halves, all but with a slightly different unit AWP mix, mostly in the fourth quarter, reflecting market conditions.

Speaker #2: Notably, we continued to see strong growth in our bingo brand. With 13% GWP growth in FY26. In home, GWP pricing for claims inflation. We can continue to see the benefits of our improved risk selection and pricing capabilities, with a continued shift towards lower risk properties.

Speaker #2: Mid-single digit claims inflation in home, was driven by the higher natural hazard allowance and higher claims for water damage and landlord covers, but offset by tight management of the claims repair chain.

Speaker #2: Now, looking ahead to FY27, as I said, we expect to continue to deliver an underlying margin in the top half of our range. Pricing will continue to reflect claims inflation in Home and Motor. ORBIT margin is expected to moderate within guide rails.

Speaker #2: Similar levels of claims inflation in motor reflected increased credit hire, windscreen and towing costs, but importantly, parts, paint, and labor inflation, and total loss, costs, all moderated in the second half.

Speaker #2: And then, the benefit of ongoing remediation in platforms and pricing in CTP is expected to be partially offset by New Zealand moderating to target levels, as I said.

Jeremy Robson: The benefit of ongoing remediation in platforms and pricing in CTP is expected to be partially offset by New Zealand moderating to target levels, as I said. The FY27 margin outlook includes the additional premium for aggregate cover. Importantly, this will be broadly offset by a combination of expected profit commissions, reinsurance savings on the main cat program, loss ratio initiatives, and some pricing response in select portfolios. These dynamics are expected to result in a slight skew of the margin towards the H2. Moving then to the divisional results, and we will start with Consumer. Motor GWP increased 5.8%, reflecting input cost inflation. GWP growth was similar in both halves, albeit with a slightly different unit AWP mix, mostly in the Q4, reflecting market conditions. Notably, we continue to see strong growth in our Bingle brand with 13% GWP growth in FY26.

Speaker #2: Next then to commercial and personal injury. GWP increased 4.5% for the full year, and 6.5% in the second half, demonstrating the strong momentum in that business.

Speaker #2: The FY27 margin outlook includes the additional premium for aggregate cover. Importantly, this will be broadly offset by a combination of expected profit commissions, reinsurance savings on the main cap program, loss ratio initiatives, and some pricing response in select portfolios.

Speaker #2: It also shows the benefit of portfolio diversification, with resilient overall performance, notwithstanding the challenging market conditions. In tailored lines, fleet grew 15%, and NTI grew by 6%.

Speaker #2: We also saw continued momentum from the successful launch of the new Vero Specialty line products. CTP benefited from pricing increases in both New South Wales and Queensland, with total GWP growth of around 6%.

Speaker #2: These dynamics are expected to result in a slight skew of the margin towards the second half. Moving then to the divisional results, we'll start with Consumer.

Speaker #2: Motor GWP increased 5.8%, reflecting input cost inflation. GWP growth was similar in both halves, albeit with a slightly different unit AWP mix, mostly in the fourth quarter, reflecting market conditions.

Speaker #2: These increases are still earning through, and we continue to engage with the Queensland government on the need for sustainable scheme pricing. Workers grew 4%, reflecting the combination of strong renewals, new business, and pricing.

Speaker #2: Notably, we continued to see strong growth in our Bingo brand, with 13% GWP growth in FY26. In Home, GWP grew by 5.9%, reflecting pricing for claims inflation.

Speaker #2: And the impact of prior period premium adjustments in the first half was mostly reversed, as we expected. Growth in platforms was impacted by ongoing remediation actions, aimed at restoring profitability to target levels, through improved pricing initiatives.

Jeremy Robson: In Home, GWP grew by 5.9%, reflecting pricing for claims inflation. We continue to see the benefits of our improved risk selection and pricing capabilities with a continued shift towards lower risk properties. Mid-single-digit claims inflation in Home was driven by the higher natural hazard allowance and higher claims for water damage and landlord covers, but offset by tight management of the claims repair chain. Similar levels of claims inflation in Motor reflected increased credit hire, windscreen, and towing costs. Importantly, parts, paint, and labor inflation and total loss costs all moderated in the H2. Next then to Commercial and Personal Injury. GWP increased 4.5% for the full year and 6.5% in the H2, demonstrating the strong momentum in that business. It also shows the benefit of portfolio diversification with resilient overall performance notwithstanding the challenging market conditions.

Speaker #2: We continue to see the benefits of our improved risk selection and pricing capabilities, with an ongoing shift towards lower-risk properties. Mid-single digit claims inflation in Home was driven by the higher natural hazard allowance and increased claims for water damage and landlord covers, but was offset by tight management of the claims repair chain.

Speaker #2: Now, the softer market cycle did impact growth in both profin and property, but I note that both portfolios continue to deliver strong underlying margins, as we position these portfolios carefully through the market cycle.

Speaker #2: I also note that commercial and personal injury recognized 177 million dollars of prior year reserve releases, reflecting better claims development across pretty much the entire portfolio.

Speaker #2: Similar levels of claims inflation in motor reflected increased credit hire, windscreen, and towing costs, but importantly, parts, paint, and labour inflation, and total loss costs all moderated in the second half.

Speaker #2: Turning then to New Zealand. Now, notwithstanding the challenging market and economic conditions in New Zealand, the business continues to deliver very attractive returns. GWP was down 2.7% in New Zealand dollars, and that's adjusting for the transition of the brokered book of consumer business that we flagged in the first half, but also noting a modest improvement in the GWP position in the second half.

Speaker #2: Next, turning to Commercial and Personal Injury. GWP increased 4.5% for the full year and 6.5% in the second half, demonstrating the strong momentum in that business.

Speaker #2: It also shows the benefit of portfolio diversification, with resilient overall performance notwithstanding the challenging market conditions. In tailored lines, fleet grew 15%, and NTI grew by 6%.

Speaker #2: In AA insurance, that's our direct consumer portfolio in New Zealand, GWP was up 3.2%, reflecting the strength of the brand with good unit growth across both home and motor, and then growth was a little stronger in the second half, reflecting modest single digit motor claims inflation.

Jeremy Robson: In tailored lines, fleet grew 15% and NTI grew by 6%. We also saw continued momentum from the successful launch of the new Vero Specialty Lines products. CTP benefited from pricing increases in both New South Wales and Queensland, with total GWP growth of around 6%. These increases are still earning through, and we continue to engage with the Queensland Government on the need for sustainable scheme pricing. Workers' comp grew 4%, reflecting the combination of strong renewals, new business, and pricing. The impact of prior period premium adjustments in the H1 was mostly reversed as we expected. Growth in platforms was impacted by ongoing remediation actions aimed at restoring profitability to target levels through improved pricing initiatives. The softer market cycle did impact growth in both Pro-Fin and property.

Speaker #2: We also saw continued momentum from the successful launch of the new Vero Specialty Line products. CTP benefited from pricing increases in both New South Wales and Queensland, with total GWP growth of around 6%.

Speaker #2: The intermediated consumer portfolio was impacted by the brokered book exit, as I spoke about, and adjusting for this, growth was a small contraction, reflecting the competitive environment.

Speaker #2: The commercial portfolio in New Zealand contracted almost 10%, reflecting the softening pricing cycle, as well as the weaker New Zealand economy. But again, similar to Australia, we've also maintained strong underwriting discipline in the New Zealand portfolio, with margins remaining in the target range.

Speaker #2: And then also similar to Australia, we saw significant prior year reserve releases, with AUD 50 million dollars of releases. Now, before we leave the divisional results, I'll just make a few comments on our growth outlook.

Speaker #2: Now, the softer market cycle did impact growth in both Profin and Property, but I note that both portfolios continue to deliver strong underlying margins, as we position these portfolios carefully through the market cycle.

Jeremy Robson: I note that both portfolios continue to deliver strong underlying margins as we position these portfolios carefully through the market cycle. I also note that Commercial and Personal Injury recognized AUD 177 million of prior year reserve releases, reflecting better claims development across pretty much the entire portfolio. Turning now to New Zealand. Notwithstanding the challenging market and economic conditions in New Zealand, the business continues to deliver very attractive returns. GWP was down 2.7% in New Zealand dollars, and that is adjusting for the transition of the brokered book of consumer business that we flagged in the H1, but also noting a modest improvement in the GWP position in the H2.

Speaker #2: We expect to deliver GWP growth of between 3 and 5% for FY27. Consumer remains supported by pricing for input cost inflation across both home and motor.

Speaker #2: I also note that Commercial and Personal Injury recognised $177 million of prior year reserve releases, reflecting better claims development across pretty much the entire portfolio.

Speaker #2: Commercial is well positioned to benefit from the price earning through the personal injury business, as well as Vero Specialty lines growth. And the ongoing remediation and pricing work in the platform business is also expected to contribute to growth.

Speaker #2: Turning then to New Zealand. Now, notwithstanding the challenging market and economic conditions in New Zealand, the business continues to deliver very attractive returns. GWP was down 2.7% in New Zealand dollars—that's adjusting for the transition of the brokered book of consumer business that we flagged in the first half, but also noting a modest improvement in the GWP position in the second half.

Speaker #2: Now, while the operating environment remains challenging in New Zealand, we continue to expect growth in the direct consumer AA business, and the impact of the brokered book of business that we flagged in the first half is broadly removed.

Speaker #2: We do, however, continue to expect a softer commercial market cycle and economy in New Zealand, particularly in the first half. Next then to reinsurance.

Jeremy Robson: In AA Insurance, that is our direct consumer portfolio in New Zealand, GWP was up 3.2%, reflecting the strength of the brand with good unit growth across both home and motor, and growth was a little stronger in the H2, reflecting modest single digit motor claims inflation. The intermediated consumer portfolio was impacted by the brokered book exit that I spoke about. Adjusting for this, growth was a small contraction, reflecting the competitive environment. The commercial portfolio in New Zealand contracted almost 10%, reflecting the softening pricing cycle as well as the weaker New Zealand economy. Again, similar to Australia, we have also maintained strong underwriting discipline in the New Zealand portfolio with margins remaining in the target range. Also similar to Australia, we saw significant prior year reserve releases with AUD 50 million of releases.

Speaker #2: We manage our reinsurance program, as you know, through the lens of long-term shareholder value creation, with a focus on fundamental economics. FY27 main cap program is broadly consistent with the prior year.

Speaker #2: The intermediated consumer portfolio was impacted by the brokered book exit, as I spoke about, and, adjusting for this, growth was a small contraction, reflecting the competitive environment.

Speaker #2: Reinsurance markets were favorable for our renewal, and Suncorp continues to present an attractive scale market for reinsurers, and this has been reflected in the pricing achieved on the renewal.

Speaker #2: The commercial portfolio in New Zealand contracted almost 10%, reflecting the softening pricing cycle as well as the weaker New Zealand economy. But again, similar to Australia, we've also maintained strong underwriting discipline in the New Zealand portfolio, with margins remaining in the target range.

Speaker #2: As already announced, our program is now supported by a five-year aggregate cover, providing up to 800 million dollars a year of protection. This cover materially limits natural hazard risk, capping downside at 50 million dollars to the natural hazard allowance for FY27, in approximately 90% of scenarios.

Speaker #2: And then also, similar to Australia, we saw significant prior year reserve releases, with AUD 50 million of releases. Now, before we leave the divisional results, I'll just make a few comments on our growth outlook.

Speaker #2: The aggregate cover, as we've said before, is expected to be broadly neutral in terms of its fundamental economic cost. Now, the new aggregate structure adds to our existing multi-year buydown arrangement on the main cap, and both of these programs include profit share arrangements, offering material upside to reported margins, where we see benign weather experience.

Jeremy Robson: Now before we leave the divisional results, I will just make a few comments on our growth outlook. We expect to deliver GWP growth of between 3% and 5% for FY27. Consumer remains supported by pricing for input cost inflation across both home and motor. Commercial is well positioned to benefit from the price earning through the personal injury business, as well as Vero Specialty Lines growth, and the ongoing remediation and pricing work in the platform business is also expected to contribute to growth. While the operating environment remains challenging in New Zealand, we continue to expect growth in the direct consumer AA business and the impact of the brokered book of business that we flagged in the H1 is broadly removed. We do, however, continue to expect a softer commercial market cycle and economy in New Zealand, particularly in the H1. Next then to reinsurance.

Speaker #2: We expect to deliver GWP growth of between 3% and 5% for FY27. Consumer remains supported by pricing for input cost inflation across both home and motor.

Speaker #2: Commercial is well positioned to benefit from the price earning through the personal injury business, as well as Vero Specialty Lines growth. The ongoing remediation and pricing work in the Platform business is also expected to contribute to growth.

Speaker #2: Overall, the FY27 program supports a more resilient earnings profile, with upside opportunity without compromising long-term shareholder value creation or fundamental economics. Now then to investment performance.

Speaker #2: The interest rate environment continues to support attractive returns, with underlying yield on insurance funds in the Australian business increasing to 5.1%, and I note the exit yield at 30 June was 5.3%.

Speaker #2: We do, however, continue to expect a softer commercial market cycle and economy in New Zealand, particularly in the first half. Next, then, to reinsurance.

Speaker #2: Now, as you'd know, the rising yields result in mark-to-market losses in both insurance funds and shareholders funds, and that drove net investment income for the year.

Speaker #2: We manage our reinsurance program, as you know, through the lens of long-term shareholder value creation, with a focus on fundamental economics. The FY27 main cap program is broadly consistent with the prior year.

Jeremy Robson: We manage our reinsurance program, as you know, through the lens of long-term shareholder value creation with a focus on fundamental economics. Our FY27 main cat program is broadly consistent with the prior year. Reinsurance markets were favorable for our renewal, and Suncorp continues to present an attractive scale market for reinsurers, and this has been reflected in the pricing achieved on the renewal. As already announced, our program is now supported by a five-year aggregate cover providing up to AUD 800 million a year of protection. This cover materially limits natural hazard risk, capping downside at AUD 50 million to the natural hazard allowance for FY27 in approximately 90% of scenarios. The aggregate cover, as we have said before, is expected to be broadly neutral in terms of its fundamental economic cost.

Speaker #2: We continue to adjust our investment portfolio in line with our strategic asset allocation. In insurance funds, inflation linked bonds were reallocated to structured credit, and there's still a small rebalancing of the ILB portfolio required, which is going to be implemented in the context of our outlook for inflation.

Speaker #2: Reinsurance markets were favourable for our renewal, and Suncorp continues to present an attractive scale market for reinsurers. This has been reflected in the pricing achieved on the renewal.

Speaker #2: And then in shareholders funds, we've rebalanced cash into infrastructure and property, with a final small rebalancing into infrastructure currently underway. We've continued to enhance the resiliency of the investment portfolio, with the implementation of a hedge strategy, which effectively partially reduces tower risk in equities, with no material earnings drag expected.

Speaker #2: As already announced, our program is now supported by a five-year aggregate cover, providing up to $800 million a year of protection. This cover materially limits natural hazard risk, capping downside at $50 million to the natural hazard allowance for FY27 in approximately 90% of scenarios.

Speaker #2: Turning then to expenses. We continued to deliver strong cost discipline, while maintaining investment in our strategic growth initiatives. The expense ratio reduced 50 basis points year on year, underlying inflation across wages and technology costs, have been offset by productivity benefits, and continued management focus on efficiency.

Jeremy Robson: Now the new aggregate structure adds to our existing multi-year buy-down arrangement on the main cat, and both of these programs include profit share arrangements, offering material upside to reported margins where we see benign weather experience. Overall, the FY27 program supports a more resilient earnings profile with upside opportunity without compromising long-term shareholder value creation or fundamental economics. Now then to investment performance. The interest rate environment continues to support attractive returns with underlying yield on insurance funds in the Australian business increasing to 5.1%. I note the exit yield at 30 June was 5.3%. As you would know, the rising yields result in mark-to-market losses in both insurance funds and shareholders' funds, and that drove net investment income for the year. We continue to adjust our investment portfolio in line with our strategic asset allocation.

Speaker #2: Importantly, we've been able to improve our expense ratio, whilst also investing in the modernization of the business, and that includes the digital insurer program, data and AI capabilities, as well as technology platform upgrades.

Speaker #2: Overall, the FY27 program supports a more resilient earnings profile, with upside opportunity, without compromising long-term shareholder value creation or fundamental economics. Now, then, to investment performance.

Speaker #2: These investments are expected to further improve customer outcomes, simplify our business, and support sustainable growth over time. We expect the total expense ratio to be broadly flat in FY27, noting that this excludes restructuring costs, and restructuring costs in FY27 are expected to be broadly in line with what we've incurred in recent years.

Speaker #2: The interest rate environment continues to support attractive returns, with the underlying yield on insurance funds in the Australian business increasing to 5.1%. I note the exit yield at 30 June was 5.3%.

Speaker #2: Now, as you'd know, the rising yields result in mark-to-market losses in both insurance funds and shareholders' funds, and that drove net investment income for the year.

Speaker #2: And then finally, on the results, to capital. Our capital position remains very strong, and we've retained our disciplined approach to capital management, as Steve said.

Speaker #2: We continue to adjust our investment portfolio in line with our strategic asset allocation. In insurance funds, inflation-linked bonds were reallocated to structured credit, and there's still a small rebalancing of the ILB portfolio required, which is going to be implemented in the context of our outlook for inflation.

Speaker #2: In FY26, we successfully bought back 400 million dollars of shares, reducing the share count by 23 million. Today, we're announcing a return of a further 356 million dollars of capital to shareholders.

Jeremy Robson: In insurance funds, inflation-linked bonds were reallocated to structured credit, and there is still a small rebalancing of the ILB portfolio required, which is going to be implemented in the context of our outlook for inflation. Then in shareholders' funds, we have rebalanced cash into infrastructure and property with a final small rebalancing into infrastructure currently underway. We have continued to enhance the resiliency of the investment portfolio with the implementation of a hedge strategy, which effectively partially reduces tail risk in equities with no material earnings drag expected. Turning into expenses, we continued to deliver strong cost discipline while maintaining investment in our strategic growth initiatives. The expense ratio reduced 50 basis points year on year. Underlying inflation across wages and technology costs have been offset by productivity benefits and continued management focus on efficiency.

Speaker #2: With a fully frank special dividend of 10 cents per share, and an on-market buyback for FY27 of up to 250 million dollars. Now, this is in addition to a fully frank final dividend of 52 cents per share at a 70% payout.

Speaker #2: And then in shareholders' funds, we've rebalanced cash into infrastructure and property, with a final small rebalancing into infrastructure currently underway. We've continued to enhance the resiliency of the investment portfolio with the implementation of a hedge strategy, which effectively partially reduces tail risk in equities, with no material earnings drag expected.

Speaker #2: Now, after taking into account the special dividend and buyback, pro forma excess CET1 remains 162 million dollars, above the midpoint of our target range.

Speaker #2: Turning then to expenses, we continued to deliver strong cost discipline while maintaining investment in our strategic growth initiatives. The expense ratio reduced by 50 basis points year on year. Underlying inflation across wages and technology costs has been offset by productivity benefits and continued management focus on efficiency.

Speaker #2: Now, from the chart there, you can see that the we did experience some net usage of organic capital in the second half, and there are a couple of items, key items that contributed to this.

Speaker #2: The first was the impact of the foreign currency translation reserve from the weaker New Zealand dollar. And then the second was some additional prudent level of risk margin put aside for the current geopolitical uncertainty.

Speaker #2: Importantly, we've been able to improve our expense ratio, whilst also investing in the modernisation of the business, and that includes the Digital Insurer program, data and AI capabilities, as well as technology platform upgrades.

Jeremy Robson: Importantly, we have been able to improve our expense ratio whilst also investing in the modernization of the business, and that includes the digital insurer program, data and AI capabilities, as well as technology platform upgrades. These investments are expected to further improve customer outcomes, simplify our business, and support sustainable growth over time. We expect the total expense ratio to be broadly flat in FY27, noting that this excludes restructuring costs, and restructuring costs in FY27 are expected to be broadly in line with what we have incurred in recent years. Then finally, on the results to capital, our capital position remains very strong, and we have retained our disciplined approach to capital management, as Steve said. In FY26, we successfully bought back AUD 400 million of shares, reducing the share count by 23 million.

Speaker #2: Beyond these, other key dynamics on capital during the half, with the aggregate cover providing a one-off capital benefit, a targets benefit of 107 million dollars, as well as providing confidence to reduce the level of excess CET1 we hold above the midpoint.

Speaker #2: These investments are expected to further improve customer outcomes, simplify our business, and support sustainable growth over time. We expect the total expense ratio to be broadly flat in FY27, noting that this excludes restructuring costs. Restructuring costs in FY27 are expected to be broadly in line with what we've incurred in recent years.

Speaker #2: And then, of course, the New Zealand life sale deferred proceeds, of 160 million dollars, were received on the 31st of July, making these funds available for return to shareholders.

Speaker #2: Now, before turning back to Steve, I'd like to finish by highlighting our enhanced resilience earnings resilience profile. We introduced the new aggregate reinsurance cover, in FY27, which limits downside to natural hazard risk for the next five years.

Speaker #2: And then finally, on the results, to capital. Our capital position remains very strong, and we've retained our disciplined approach to capital management, as Steve said.

Speaker #2: In FY26, we successfully bought back $400 million of shares, reducing the share count by 23 million. Today, we're announcing a return of a further $356 million of capital to shareholders.

Speaker #2: We have a robust natural hazard allowance, which includes specific resiliency buffer. By way of example, and you can see on the chart there, the top left box, average natural hazard experience, that's average natural hazard experience, would have been between 125 million and 200 million dollars, better than the allowance, over that 15-year period.

Jeremy Robson: Today, we are announcing return of a further AUD 356 million of capital to shareholders, with a fully frank special dividend of AUD 0.10 per share and an on-market buyback for FY27 of up to AUD 250 million. This is an addition to a fully frank final dividend of AUD 0.52 per share at a 70% payout. After taking into account the special dividend and buyback, pro forma excess CET1 remains AUD 162 million above the midpoint of our target range. From the chart there, you can see that we did experience some net usage of organic capital in the H2. There are a couple of items, key items that contributed to this. The first was the impact of the foreign currency translation reserve from the weaker New Zealand dollar. Then the second was some additional prudent level of risk margin put aside for the current geopolitical uncertainty.

Speaker #2: We announced a fully franked special dividend of 10 cents per share and an on-market buyback for FY27 of up to $250 million. This is in addition to a fully franked final dividend of 52 cents per share, at a 70% payout.

Speaker #2: And that's with the current allowance, the current reinsurance program, inflation adjusted, and as I say, average. We've traditionally maintained a conservative investment approach, enhanced by further diversification into structured credit, property, and infrastructure, and the implementation of the equity tower risk hedge strategy.

Speaker #2: Now, after taking into account the special dividend and buyback, pro forma excess CET1 remains $162 million, above the midpoint of our target range.

Speaker #2: Now, from the chart there, you can see that we did experience some net usage of organic capital in the second half, and there are a couple of key items that contributed to this.

Speaker #2: And then we continue to place low reliance on prior reserve releases, notwithstanding the material releases experienced in FY27. Now, these actions have provided significantly more resilience to our underlying earnings.

Speaker #2: The first was the impact of the foreign currency translation reserve from the weaker New Zealand dollar. The second was an additional prudent level of risk margin put aside for the current geopolitical uncertainty.

Speaker #2: And all the while maintaining margins in the top half of the range. Importantly, there's also now a meaningful upside opportunity to reported earnings, as you can see from the slide on the right-hand side, including the profit commissions from our two structured reinsurance arrangements.

Speaker #2: Beyond these, other key dynamics on capital during the half were the aggregate cover providing a one-off capital benefit, a targets benefit of $107 million, as well as providing confidence to reduce the level of excess CET1 we hold above the midpoint.

Jeremy Robson: Beyond these are the key dynamics on capital during the half, with the aggregate cover providing a one-off capital benefit, the targets benefit of AUD 107 million, as well as providing confidence to reduce the level of excess CET1 we hold above the midpoint. Then, of course, the New Zealand Life sale deferred proceeds of AUD 160 million were received on 31 July, making these funds available for return to shareholders. Before turning back to Steve, I would like to finish by highlighting our enhanced earnings resilience profile. We introduced the new aggregate reinsurance cover in FY27, which limits downside to natural hazard risk for the next five years. We have a robust natural hazard allowance, which includes specific resiliency buffer. By way of example, and you can see on the chart there, the top left box, average natural hazard experience.

Speaker #2: This clearly represents a fundamentally improved risk return profile for Suncorp's 's business. And with that, I'll now hand you back to Steve.

Speaker #2: And then, of course, the New Zealand Life sale deferred proceeds of $160 million were received on the 31st of July, making these funds available for return to shareholders.

Speaker #1: Well, thanks, Jeremy. And before I move to strategy and outlook, I just wanted to, again, remind you how we of how we believe long-term value is created at Suncorp.

Speaker #2: Now, before turning back to Steve, I'd like to finish by highlighting our enhanced earnings resilience profile. We introduced the new aggregate reinsurance cover in FY27, which limits downside to natural hazard risk for the next five years.

Speaker #1: Our purpose delivered through our people in support of our customers and the communities that they live in, when done well, will always deliver superior returns to shareholders.

Speaker #2: We have a robust natural hazard allowance, which includes specific resiliency buffer. By way of example, and you can see on the chart there, the top left box, average natural hazard experience, that's average natural hazard experience, would have been between 125 million and 200 million dollars better than the allowance over that 15-year period.

Speaker #1: Now, this slide is also familiar to you, and it captures our plan on a page. Our five portfolios reflect the breadth of our trans-Tasman business, and will provide significantly more detail on their individual portfolio priorities, at our investor day in October.

Jeremy Robson: This average natural hazard experience would have been between AUD 125 million and AUD 200 million better than the allowance over that 15-year period. That is with the current allowance, the current reinsurance program, inflation adjusted, and as I say, average. We have traditionally maintained a conservative investment approach, enhanced by further diversification into structured credit, property and infrastructure, and the implementation of the equity tail risk hedge strategy. Then we continue to place low reliance on prior reserve releases, notwithstanding the material releases experienced in FY27. Now these actions have provided significantly more resilience to our underlying earnings, and all the while maintaining margins in the top half of the range. Importantly, there is also now a meaningful upside opportunity to reported earnings, as you can see from the slide on the right-hand side, including the profit commissions from our two structured reinsurance arrangements.

Speaker #1: Underpinning those priorities are the strategic imperatives that support our business and our strategy. These are focused on transforming how we work through technology, through modern platforms, AI, and a culture that's centered on delivering simple, personalized customer experiences.

Speaker #2: And that's with the current allowance, the current reinsurance program, inflation-adjusted, and, as I say, average. We've traditionally maintained a conservative investment approach, enhanced by further diversification into structured credit, property, and infrastructure, and the implementation of the equity tower risk hedge strategy.

Speaker #1: Now, this next slide, I think, captures in a fairly simple way the methodical evolution of Suncorp since 2019. The first phase of our strategy was simplification.

Speaker #1: And from the outset, we as a team formed the view that the best way to create long-term value was to focus our organization on the areas where we could build genuine competitive advantage.

Speaker #1: And that led us through a multi-year program of portfolio simplification, which included of course, the sale of life, wealth, smart, and of course, Suncorp Bank.

Speaker #2: This clearly represents a fundamentally improved risk-return profile for Suncorp's business. And with that, I'll now hand you back to Steve.

Jeremy Robson: This clearly represents a fundamentally improved risk-return profile for Suncorp's business. With that, I will now hand you back to Steve.

Speaker #1: With the completion of the New Zealand life that simplification chapter largely came to an end. But what emerged was a significantly simpler business. Now, the second phase of the strategy was about investing in what we call the pure play insurer.

Speaker #1: Well, thanks, Jeremy. And before I move to strategy and outlook, I just wanted to again remind you of how we believe long-term value is created at Suncorp.

Steve Johnston: Well, thanks, Jeremy. Before I move to strategy and outlook, I just wanted to, again, remind you of how we believe long-term value is created at Suncorp. Our purpose, delivered through our people in support of our customers and the communities that they live in, when done well, will always deliver superior returns to shareholders. Now this slide is also familiar to you, and it captures our plan on the page. Our five portfolios reflect the breadth of our trans-Tasman business and will provide significantly more detail on their individual portfolio priorities at our Investor Day in October. Underpinning those priorities are the strategic imperatives that support our business and our strategy. These are focused on transforming how we work through technology, through modern platforms, AI, and a culture that is centered on delivering simple, personalized customer experiences.

Speaker #1: Or Project Sunshine, as we called it internally. Now, alongside the simplification program, we invested heavily in the foundations of the insurance business. We began implementing a new policy administration system.

Speaker #1: Our purpose, delivered through our people in support of our customers and the communities that they live in, when done well, will always deliver superior returns to shareholders.

Speaker #1: We modernized our claims capabilities. We've invested in new telephony platforms, and we've built out our data capabilities. We've, of course, also started the journey with AI.

Speaker #1: Now, this slide is also familiar to you, and it captures our plan on a page. Our five portfolios reflect the breadth of our trans-Tasman business, and we will provide significantly more detail on their individual portfolio priorities at our Investor Day in October.

Speaker #1: And finally, we also strengthened the resilience of the business, as Jeremy's pointed out, through the enhancements to our reinsurance program. Now, this brings us to the third phase, which is where we are today.

Speaker #1: Underpinning those priorities are the strategic imperatives that support our business and our strategy. These are focused on transforming how we work through technology, through modern platforms, AI, and a culture that's centred on delivering simple, personalised customer experiences.

Speaker #1: We are now entering a period where the focus shifts from building those capabilities to leveraging them to better deliver better outcomes for our customers.

Speaker #1: And this is fundamentally important, because insurance is changing. Customers increasingly expect products and services that reflect their individual circumstances. If a customer invests in making their home more resilient, in improving the maintenance of that home, or reducing risk, they will increasingly expect that will be recognized in the price they pay for their insurance.

Speaker #1: Now, this next slide, I think, captures in a fairly simple way the methodical evolution of Suncorp since 2019. The first phase of our strategy was simplification.

Steve Johnston: Now, this next slide, I think, captures in a fairly simple way the methodical evolution of Suncorp since 2019. The first phase of our strategy was simplification. From the outset, we as a team formed the view that the best way to create long-term value was to focus our organization on the areas where we could build genuine competitive advantage. That led us through a multi-year program of portfolio simplification, which included, of course, the sale of Life, Wealth, Smart, and of course, Suncorp Bank. With the completion of the New Zealand Life transaction in 2025, that simplification chapter largely came to an end. What emerged was a significantly simpler business. Now the second phase of the strategy was about investing in what we call the pure play insurer or Project Sunshine, as we called it internally.

Speaker #1: And from the outset, we as a team formed the view that the best way to create long-term value was to focus our organisation on the areas where we could build genuine competitive advantage.

Speaker #1: And the same is true for motor, and commercial, as it's been in commercial for many, many years. But to deliver that future insurers need modern infrastructure, modern policy administration systems, strong data capabilities, and to utilize AI, decision making, and AI-enabled distribution systems.

Speaker #1: And that led us through a multi-year program of portfolio simplification, which included, of course, the sale of Life, Wealth, Smart, and, of course, Suncorp Bank.

Speaker #1: With the completion of the New Zealand Life transaction in 2025, that simplification chapter largely came to an end. But what emerged was a significantly simpler business.

Speaker #1: And that's fundamentally why we've made the investments that we've made the future is ultimately about reshaping how insurance products are manufactured and distributed. And we see opportunities for highly personalized customer experiences, and AI orchestrated customer journeys.

Speaker #1: Now, the second phase of the strategy was about investing in what we called the pure play insurer—or Project Sunshine, as we called it internally.

Speaker #1: Now, alongside the simplification program, we invested heavily in the foundations of the insurance business. We began implementing a new policy administration system, and we modernised our claims capabilities.

Steve Johnston: Now alongside the simplification program, we invested heavily in the foundations of the insurance business. We began implementing a new policy administration system. We modernized our claims capabilities. We have invested in new telephony platforms, and we have built out our data capabilities. We have, of course, also started the journey with AI. Finally, we also strengthened the resilience of the business, as Jeremy has pointed out, through the enhancements to our reinsurance program. This brings us to the third phase, which is where we are today. We are now entering a period where the focus shifts from building those capabilities to leveraging them to deliver better outcomes for our customers. This is fundamentally important because insurance is changing. Customers increasingly expect products and services that reflect their individual circumstances.

Speaker #1: Now, the structural changes we've announced today will ensure we are able to leverage our new platforms and those AI capabilities to maximum effect. A new function that will be led by Bridget will bring together our customer, brand, and digital distribution teams, and it will ensure we realize the opportunity that AI provides for faster, and more efficient distribution of insurance products.

Speaker #1: We've invested in new telephony platforms, and we've built out our data capabilities. We've, of course, also started the journey with AI. And, finally, we've strengthened the resilience of the business, as Jeremy pointed out, through the enhancements to our reinsurance program.

Speaker #1: Through our suite of multi-brand of multi-leading brand strategy. Lisa and Michael, in the new roles, will be responsible for product and claims across consumer and commercial, leveraging our digital insurer investments, to deliver personalized products and market leading claims experiences.

Speaker #1: Now, this brings us to the third phase, which is where we are today. We are now entering a period where the focus shifts from building those capabilities to leveraging them to deliver better outcomes for our customers.

Speaker #1: And this is fundamentally important, because insurance is changing. Customers increasingly expect products and services that reflect their individual circumstances. If a customer invests in making their home more resilient, in improving the maintenance of that home, or reducing risk, they will increasingly expect that to be recognised in the price they pay for their insurance.

Speaker #1: Michelle Vane, who'd be familiar to many in the room, will step into Bridget's role as the CRO. Now, I'm more confident than ever that we're on the right path.

Steve Johnston: If a customer invests in making their home more resilient, in improving the maintenance of that home or reducing risk, they will increasingly expect that will be recognized in the price they pay for their insurance. The same is true for motor and commercial, as it has been in commercial for many, many years. To deliver that future, insurers need modern infrastructure, modern policy administration systems, strong data capabilities, and to utilize AI decision-making and AI-enabled distribution systems. That is fundamentally why we have made the investments that we have made. The future is ultimately about reshaping how insurance products are manufactured and distributed. We see opportunities for highly personalized customer experiences and AI-orchestrated customer journeys. The structural changes we have announced today will ensure we are able to leverage our new platforms and those AI capabilities to maximum effect.

Speaker #1: We've simplified the business, invested in the core insurance franchise, strengthened our resilience, and now we're entering a phase where we can leverage all of that to create value for both customers and for shareholders.

Speaker #1: And the same is true for motor and commercial, as it's been in commercial for many, many years. But to deliver that future, insurers need modern infrastructure, modern policy administration systems, strong data capabilities, and to utilise AI in decision-making and AI-enabled distribution systems.

Speaker #1: And that will be the defining opportunity for Suncorp over the next few years. So before we go to the outlook, I just want to spend a brief moment on the topic of AI, and how we're thinking about the opportunity.

Speaker #1: And we'll have a lot more to say about this at our investor day in October. We've spoken about it previously, and it's an area where the pace of change continues to be significant.

Speaker #1: And that's fundamentally why we've made the investments that we've made. The future is ultimately about reshaping how insurance products are manufactured and distributed. We see opportunities for highly personalised customer experiences and AI-orchestrated customer journeys.

Speaker #1: On the left-hand side of the slide, I've highlighted again our foundational capabilities, which ensure we are well placed to leverage AI, and to improve the operational efficiency of our business.

Speaker #1: As I just touched on, we have invested heavily in the foundations, we've built the core technology, established a strong strategic partnerships. We're not going to do this all on our own.

Speaker #1: Now, the structural changes we've announced today will ensure we are able to leverage our new platforms and those AI capabilities to maximum effect. A new function, that will be led by Bridget, will bring together our customer, brand, and digital distribution teams, and it will ensure we realise the opportunity that AI provides for faster and more efficient distribution of insurance products.

Speaker #1: We've embedded governance and safety frameworks. But importantly, we've invested in building AI capability right across the organization, right through to the individual team member level.

Steve Johnston: A new function that will be led by Bridget will bring together our customer, brand, and digital distribution teams, and it will ensure we realize the opportunity that AI provides for faster and more efficient distribution of insurance products through our suite of multi-leading brand strategy. Lisa and Michael in their new roles will be responsible for product and claims across consumer and commercial, leveraging our digital insurer investments to deliver personalized products and market-leading claims experiences. Michelle Bain, who will be familiar to many in the room, will step into Bridget's role as the CRO. I am more confident than ever that we are on the right path. We have simplified the business, invested in the core insurance franchise, strengthened our resilience, and now we are entering a phase where we can leverage all of that to create value for both customers and for shareholders.

Speaker #1: We're now at a point where we're scaling and accelerating these capabilities across the business, and increasing increasingly embedding AI across our claims and customer service processes.

Speaker #1: Through our suite of multi-leading brand strategies, Lisa and Michael, in their new roles, will be responsible for product and claims across consumer and commercial, leveraging our digital insurer investments to deliver personalised products and market-leading claims experiences.

Speaker #1: Now, we've got a few examples of where AI has been deployed at scale on the right-hand side of the page. Which to date has been mainly in productivity focused use cases.

Speaker #1: Michelle Vane, who'd be familiar to many in the room, will step into Bridget's role as the CRO. Now, I'm more confident than ever that we're on the right path.

Speaker #1: So finally, before Q&A to the outlook, and as Jeremy said, GWP growth is expected to be between 3 and 5%. The underlying ITR expected to be in the top half of the 10 to 12% range.

Speaker #1: Total operating expense ratio expected to be broadly in line with FY26. We'll continue to maintain our disciplined approach to the balance sheet, a gain targeting a payout ratio around the midpoint of the 60 to 80% range of cash earnings.

Speaker #1: And that will be the defining opportunity for Suncorp over the next few years. So, before we go to the outlook, I just want to spend a brief moment on the topic of AI and how we're thinking about the opportunity.

Steve Johnston: That will be the defining opportunity for Suncorp over the next few years. Before we go to the outlook, I just want to spend a brief moment on the topic of AI and how we are thinking about the opportunity, and we will have a lot more to say about this at our Investor Day in October. We have spoken about it previously, and it is an area where the pace of change continues to be significant. On the left-hand side of the slide, I have highlighted again our foundational capabilities, which ensure we are well-placed to leverage AI and to improve the operational efficiency of our business. As I just touched on, we have invested heavily in the foundations. We have built the core technology, established the strong strategic partnerships. We are not going to do this all on our own. We have embedded governance and safety frameworks.

Speaker #1: And finally, as we've covered off a couple of times, we'll be commencing that buyback with a target of up to 250 million dollars over the course of FY27.

Speaker #1: And we'll have a lot more to say about this at our Investor Day in October. We've spoken about it previously, and it's an area where the pace of change continues to be significant.

Speaker #1: So at that point, let's go to your questions. Do you want to start, Andre?

Speaker #1: On the left-hand side of the slide, I've highlighted again our foundational capabilities, which ensure we are well-placed to leverage AI and to improve the operational efficiency of our business.

Speaker #2: Yeah, good morning. Andre Stadnik here from Royal Bank of Canada. Can I ask my first question around pricing and volume trends in the personal book?

Speaker #1: As I just touched on, we have invested heavily in the foundations. We've built the core technology and established strong strategic partnerships. We're not going to do this all on our own.

Speaker #2: So just reflecting back on what happened in the first half in unit growth, it seems that home and motor and motor in particular were flat in the second half.

Speaker #2: And price, and Bridget was actually pretty robust, but units really slowed in the second half. So how are you thinking about, you know, price in maybe marketing strategy, you know, going forward?

Speaker #1: We've embedded governance and safety frameworks. But importantly, we've invested in building AI capability right across the organisation, right through to the individual team member level.

Steve Johnston: But importantly, we have invested in building AI capability right across the organization, right through to the individual team member level. We are now at a point where we are scaling and accelerating these capabilities across the business and increasingly embedding AI across our claims and customer service processes. We have a few examples of where AI has been deployed at scale on the right-hand side of the page, which to date has been mainly in productivity-focused use cases. Finally, before Q&A, to the outlook. As Jeremy said, GWP growth is expected to be between 3% and 5%. The underlying ITR expected to be in the top half of the 10% to 12% range. Total operating expense ratio expected to be broadly in line with FY26. We will continue to maintain our disciplined approach to the balance sheet.

Speaker #2: Because, I mean, you were outright have been very aggressive with marketing some of the other competitors. How do you think about pricing marketing and other initiatives going forward?

Speaker #1: We're now at a point where we're scaling and accelerating these capabilities across the business and increasingly embedding AI across our claims and customer service processes.

Speaker #1: Yeah, I might just quickly start off, and then Jeremy can go through the detail. Look, I think the first point to make is that there continues to be elevated levels of inflation across the insurance value chain.

Speaker #1: Now, we've got a few examples of where AI has been deployed at scale on the right-hand side of the page, which to date has been mainly in productivity-focused use cases.

Speaker #1: And I'd make the point again, as we've made many times, that the insurance inflation is different to CPI. And it's running at a different clip.

Speaker #1: So finally, before Q&A, to the outlook. And as Jeremy said, GWP growth is expected to be between 3% and 5%. The underlying ITR is expected to be in the top half of the 10% to 12% range.

Speaker #1: So, you know, estimation of insurance inflation is around 6%, or maybe slightly higher, relative to CPI. You know, just above 3. Now, that's got to be the first fundamental priority as we look at pricing the business.

Speaker #1: Total operating expense ratio is expected to be broadly in line with FY26. We'll continue to maintain our disciplined approach to the balance sheet, again targeting a payout ratio around the midpoint of the 60 to 80 percent range of cash earnings.

Speaker #1: And I think what that does sometimes is create a disparity between the pricing that we see, and the rest of the market. And you will see that unit count move around a little bit, over the period of time.

Steve Johnston: Again, targeting a payout ratio around the midpoint of the 60% to 80% range of cash earnings. Finally, as we have covered off a couple of times, we will be commencing that buyback with a target of up to AUD 250 million over the course of FY27. At that point, let us go to your questions. Want to start, Andre?

Speaker #1: And finally, as we've covered off a couple of times, we'll be commencing that buyback with a target of up to $250 million over the course of FY27.

Speaker #1: The other point I'd make about the multi-brand strategy, which, you know, again, I believe to be a very effective part of our arsenal, and I know there's been questions about brands in an AI world, but we're seeing this multi-brand strategy play out very effectively for us, through this period of time.

Speaker #1: So at that point, let's go to your questions. I'll start—Andre?

Speaker #1: The two pillars of our multi-brand strategy in Australia, AAMI, and in New Zealand, AAI. And if you recall back five or six years ago, you know, Amy was, you know, struggling.

Speaker #2: Yeah, good morning. Andre Slatney here from Royal Bank of Canada. Can I ask my first question around pricing and volume trends in the personal book?

Andre Sladni: Good morning. Andre Sladni here from Royal Bank of Canada. Can I ask my first question around pricing and volume trends in the personal book? Just reflecting back on what happened in the H1 in unit growth, it seems that home and motor in particular were flat in the H2. Price and ratio was actually pretty robust, but units really slow in the H2. How are you thinking about pricing, maybe marketing strategy going forward? We knew we outright have been very aggressive with marketing some of the other competitors. How do you think about pricing, marketing, and other initiatives going forward?

Andrei Stadnik: Good morning. Andre Sladni here from Royal Bank of Canada. Can I ask my first question around pricing and volume trends in the personal book? Just reflecting back on what happened in the H1 in unit growth, it seems that home and motor in particular were flat in the H2. Price and ratio was actually pretty robust, but units really slow in the H2. How are you thinking about pricing, maybe marketing strategy going forward? We knew we outright have been very aggressive with marketing some of the other competitors. How do you think about pricing, marketing, and other initiatives going forward?

Speaker #2: So, just reflecting back on what happened in the first half in unit growth, it seems that home and motor—motor in particular—were flat in the second half.

Speaker #1: It's now performing incredibly well in our brand portfolio, as is AAI in New Zealand. Jeremy went through some of the niche brands, which are growing.

Speaker #2: And price and appreciation was actually pretty robust, but units really slowed in the second half. So how are you thinking about price and maybe marketing strategy going forward?

Speaker #1: And I'd make the point about Bingle, which is growing at around 13%. Now, that's the brand we put up against some of the price challenges, and it picks up that opportunity for us on the way through.

Speaker #2: Because, I mean, you have been very aggressive with marketing compared to some of the other competitors. How do you think about pricing, marketing, and other initiatives going forward?

Speaker #1: So the multi-brand strategy continues to be one of the most effective parts of our arsenal in this environment. Pricing to inflation is also a key part of the story.

Speaker #1: Yeah, I might just quickly start off, and then Jeremy can go through the detail. Look, I think the first point to make is that there continue to be elevated levels of inflation across the insurance value chain.

Steve Johnston: Yeah. I might just quickly start off and then Jeremy can go through the detail. Look, I think the first point to make is that there continues to be elevated levels of inflation across the insurance value chain, and I would make the point again, as we have made many times, that the insurance inflation is different to CPI, and it is running at a different clip. So our estimation of insurance inflation is around 6% or maybe slightly higher relative to CPI, just above 3%. That has got to be the first fundamental priority as we look at pricing the business. I think what that does sometimes is create a disparity between the pricing that we see and the rest of the market, and you will see that unit count move around a little bit over the period of time.

Speaker #1: And making sure that we've got the discipline around that, so that we're always going to be ahead of inflation, not behind it, which is a big differential.

Speaker #1: And I'd make the point again, as we've made many times, that insurance inflation is different from CPI, and it's running at a different clip.

Speaker #1: But to some extent, that may see unit count drop or move around a little bit. And you saw that between the first half and the second half.

Speaker #1: The only other comment before I hand to Jeremy with a bit of a top up is, it's very hard to get a sense of what the market's doing.

Speaker #1: So, you know, estimation of insurance inflation is around 6%, or maybe slightly higher relative to CPI, you know, just above 3%. Now, that's got to be the first fundamental priority as we look at pricing the business.

Speaker #1: And so, yes, while our unit count in an absolute sense might have come down, we also see new car sales, and various other elements of system growth, both for home and motor falling away a little bit in the second half as well.

Speaker #1: And I think what that does sometimes is create a disparity between the pricing that we see and the rest of the market. And you will see that unit count move around a little bit.

Speaker #1: Which will put our unit count number in more perspective relative to our competitors.

Speaker #1: Over the period of time. The other point I'd make about the multi-brand strategy, which, again, I believe to be a very effective part of our arsenal.

Speaker #3: Yeah, I'll just add, Steve, that you're right, Andre is more motor than home. Home was, give or take, flat-ish on both halves, and unit growth numbers.

Steve Johnston: The other point I'd make about the multi-brand strategy, which again, I believe to be a very effective part of our arsenal. I know there's been questions about brands in an AI world, but we're seeing this multi-brand strategy play out very effectively for us through this period of time. The two pillars of our multi-brand strategy in Australia, AAMI, and in New Zealand, AA Insurance. If you recall back five or six years ago, AAMI was struggling. It's now performing incredibly well in our brand portfolio, as is AA Insurance in New Zealand. Jeremy went through some of the niche brands which are growing. I'd make the point about Bingle, which is growing at around 13%. That's the brand we put up against some of the price challenges, and it picks up that opportunity for us on the way through.

Speaker #1: And I know there have been questions about brands in an AI world, but we're seeing this multi-brand strategy play out very effectively for us through this period of time.

Speaker #3: We obviously flat in motor in the second half. Most of that was in Q4. So Q1 was actually okay. So most of it was Q4.

Speaker #3: As Steve said, system, we think system came off a little bit in that quarter. Maybe connected to the Middle East conflict. We certainly saw competitors increase some of their activity around new business discounts, increased marketing, et cetera.

Speaker #1: The two pillars of our multi-brand strategy in Australia are AAMI and in New Zealand, AAI. And if you recall back five or six years ago, you know, AAMI was, you know, struggling.

Speaker #1: It's now performing incredibly well in our brand portfolio, as is AAI in New Zealand. Jeremy went through some of the niche brands, which are growing.

Speaker #3: Maybe that's a lead into a 30 June type dynamic. And then for us, we kept price on in the motor portfolio, because we are constantly tweaking the portfolio across home and motor, in terms of a growth margin outcome.

Speaker #1: And I'd make the point about Bingo, which is going at around 13%. Now, that's the brand we put up against some of the price challenges, and it picks up that opportunity for us on the way through.

Speaker #3: So we manage those portfolios around those two factors. In an outlook sense, the price we're putting through motor today, so the renewal price is increased in the second half in motor.

Speaker #1: So, the multi-brand strategy continues to be one of the most effective parts of our arsenal in this environment. Pricing to inflation is also a key part of the story.

Steve Johnston: The multi-brand strategy continues to be one of the most effective parts of our arsenal in this environment. Pricing to inflation is also a key part of the story, and making sure that we've got the discipline around that, so that we're always going to be ahead of inflation, not behind it, which is a big differential. But to some extent, that may see unit count drop or move around a little bit, and you saw that between the H1 and the H2. The only other comment before I hand to Jeremy with a bit of a top-up is, it's very hard to get a sense of what the market's doing.

Speaker #1: And making sure that we've got the discipline around that, so that we're always going to be ahead of inflation, not behind it—which is a big differential.

Speaker #3: Those prices that we're currently putting through should see us get to our outlook for FY27, so the current AWP that we're seeing. With a little bit of an improvement in retention ratios into the FY27, through some of what Steve spoke around that brand portfolio.

Speaker #1: But to some extent, that may see unit count drop or move around a little bit. And you saw that between the first half and the second half.

Speaker #1: The only other comment before I hand to Jeremy, with a bit of a top up, is that it's very hard to get a sense of what the market's doing.

Speaker #2: Thank you.

Speaker #4: For my second question, can I ask just ask around kind of balance sheet management, and then you multi-year aggregate reinsurance cover? You know, given you highlighted you want protect on the downside, with upside optionality and earnings, does that mean investors should think that you will be you may be in a position to continue to deliver special dividends if you do have good years going forward?

Speaker #1: And so, yes, while our unit count in an absolute sense might have come down, we also see new car sales and various other elements of system growth, both for Home and Motor, falling away a little bit in the second half as well.

Steve Johnston: Yes, while our unit count in an absolute sense might have come down, we also see new car sales and various other elements of system growth, both for home and motor falling away a little bit in the H2 as well, which will put our unit count number in more perspective relative to our competitors.

Speaker #1: This will put our unit count number in more perspective relative to our competitors.

Speaker #3: Yeah, I'll just add, Steve, that you're right. Motor is more, Andre, than Home. Home was, give or take, flat-ish on both halves in unit growth numbers.

Jeremy Robson: Yeah. I'd just add, Steve, that you're right on more motor than home. Home was give or take, flattish on both halves in the unit growth numbers. We obviously flat in motor in the H2. Most of that was in Q4, so Q1 was actually okay. Most of it was Q4. As Steve said, we think system came off a little bit in that quarter, maybe connected to the Middle East conflict. We certainly saw competitors increase some of their activity around new business discounts, increased marketing, et cetera. Maybe that's a lead into a 30 June type dynamic. Then for us, we kept price on in the motor portfolio because we are constantly tweaking the portfolios across home and motor in terms of a growth margin outcome. So we manage those portfolios around those two factors.

Speaker #1: Yeah, look, I mean, I have a couple of comments. And again, then JR can top up. I mean, I think, you know, with we've always had a disciplined approach to it.

Speaker #3: We obviously flattened in motor in the second half. Most of that was in Q4. So Q1 was actually okay. So most of it was Q4.

Speaker #1: We've been managing the mechanisms through which we get capital back to shareholders in what we believe to be a very efficient way. We recognize, Frank in credit, the Frank in credit balance is of limited value to us, and organization, but of great value to our shareholders.

Speaker #3: As Steve said, we think the system came off a little bit in that quarter, maybe connected to the Middle East conflict. We certainly saw competitors increase some of their activity around new business discounts, increased marketing, etc.

Speaker #1: So the mix of capital return, we favor on market buybacks, for the reasons that, you know, very clear around EPS performance return on capital, all the various metrics that sit in the business, and will create that long-term sustainable shareholder value.

Speaker #3: Maybe that's a lead into a 30 June-type dynamic. And then for us, we kept price on in the motor portfolio because we are constantly tweaking the portfolio across home and motor, in terms of a growth margin outcome.

Speaker #1: But we do recognize that from time to time, there'll be an opportunity for us to repatriate some capital, utilizing a special dividend, and then releasing the Frank in credits to our shareholders.

Speaker #3: So, we manage those portfolios around those two factors. In an outlook sense, the price we're putting through motor today—so, the renewal price has increased in the second half in motor.

Speaker #1: So the form of capital, I think, you know, won't change substantially over time; buybacks will remain. Our preferred course. Conservative management of the balance sheet, I think, will have served us well, and will continue to serve us well.

Jeremy Robson: In an outlook sense, the price we are putting through motor today, so the renewal price has increased in the H2 in motor. Those prices that we are currently putting through should see us get to our outlook for FY27, so the current AWP that we are seeing with a little bit of an improvement in retention ratios into FY27 through some of what Steve spoke around that brand portfolio.

Speaker #1: And we're continuing to take a reasonably prudent approach to that at the moment. So yeah.

Speaker #3: I'll just say that I think we've said this before, that with a 70% dividend payout ratio, it's sort of ordinarily expect something like 10% organic generation out of that, so 20% to fund the growth in the business, depending on where growth is at.

Speaker #2: Thank you.

Andre Sladni: Thank you.

Andrei Stadnik: Thank you. For my second question, can I just ask around balance sheet management and the new multi-year aggregate reinsurance cover. Given you highlighted you were protected on the downside with upside optionality and earnings, does that mean investors should think that you may be in a position to continue to deliver special dividends if you do have good years going forward?

Speaker #4: For my second question, can I ask just ask around kind of balance sheet management and the new multi-year aggregate reinsurance cover? You know, given you highlighted you want protect on the downside, with upside optionality and earnings, does that mean investors should think that you will be you may be in a position to continue to deliver special dividends if you do have good years going forward?

Andre Sladni: For my second question, can I just ask around balance sheet management and the new multi-year aggregate reinsurance cover. Given you highlighted you were protected on the downside with upside optionality and earnings, does that mean investors should think that you may be in a position to continue to deliver special dividends if you do have good years going forward?

Speaker #3: But something around that sort of level. And so if we do have more profit through those profit margins, or improved natural hazard experience relative to our expected, then that should generate obviously more capital, which should actually improve that ratio in the years where we get that.

Speaker #3: And lead to more opportunity for capital management in those years. Yeah.

Speaker #1: Yeah, look, I mean, I have a couple of comments, and again, then JR can top up. I mean, I think, you know, we've always had a disciplined approach to it.

Speaker #4: And if I can ask a third and final question from me, just can you remind us of your initiatives in terms of helping customers and communities deal with client impact?

Steve Johnston: Yeah. Look, I will make a couple of comments, and again, then J.R. can top up. I think we have always had a disciplined approach to it. We have been managing the mechanisms through which we get capital back to shareholders in what we believe to be a very efficient way. We recognize franking credit. The franking credit balance is of limited value to us as an organization, but of great value to our shareholders. So, the mix of capital return, we favor on-market buybacks for the reasons that very clear around EPS performance, return on capital, all the various metrics that sit in the business, and will create that long-term sustainable shareholder value. But we do recognize that from time to time, there will be an opportunity for us to repatriate some capital utilizing a special dividend and then releasing the franking credits to our shareholders.

Speaker #1: We've been managing the mechanisms through which we get capital back to shareholders in what we believe to be a very efficient way. We recognize the franking credit balance is of limited value to us.

Speaker #4: And are you offering incentives to help with the fund the transition or the risk management?

Speaker #1: Lisa, would you like to come up and talk about some of the initiatives that we're I mean, obviously we've got we've invested heavily in our disaster management capabilities.

Speaker #1: An organization, but of great value to our shareholders. So the mix of capital return—we favor on-market buybacks for reasons that are very clear around EPS performance, return on capital, and all the various metrics that sit in the business.

Speaker #1: And what that allows us to do from a customer perspective is very much get on the front foot, so we've got meteorological capability now embedded in the organization, both short, medium, and long term.

Speaker #1: And we'll create that long-term, sustainable shareholder value. But we do recognize that from time to time, there'll be an opportunity for us to repatriate some capital, utilizing a special dividend and then releasing the franking credits to our shareholders.

Speaker #1: And so typically we will see, you know, good line of sight from our meteorologists around, you know, what's going to be happening in terms of the weather.

Speaker #1: And then we can deploy that disaster management capability through our management center out into the field. In terms of making sure that we've got our resources appropriately set.

Speaker #1: So, the form of capital, I think, might change substantially over time. Buybacks will remain our preferred course. Conservative management of the balance sheet, I think, has served us well and will continue to serve us well.

Steve Johnston: The form of capital, I think, it won't change substantially over time. Buybacks will remain our preferred course. Conservative management of the balance sheet, I think has served us well and will continue to serve us well. And we continue to take a reasonably prudent approach to that at the moment.

Speaker #2: Yeah, so in terms of from a consumer perspective, prevention has been a core part of our strategy. And as Steve touched on, a lot of work in terms of disaster management, price of alerts to customers, and then responding.

Speaker #1: And we're continuing to take a reasonably prudent approach to that at the moment, so yeah.

Speaker #3: I'll just say that I think we've said this before, that with a 70 percent dividend payout ratio, it's sort of ordinarily expect something like 10 percent organic generation out of that, so 20 percent to fund the growth in the business, depending on where growth is at.

Jeremy Robson: Yeah. I'll just say that, I think we've said this before, that with a 70% dividend payout ratio, we'd sort of ordinarily expect something like 10% organic generation out of that, so 20% to fund the growth in the business depending on where growth is at. But something around that sort of level. And if we do have more profit through those profit margins or improved natural hazard experience relative to our expected, then that should generate obviously more capital, which should actually improve that ratio in the years where we get that and lead to more opportunity for capital management in those years. Yeah.

Speaker #2: But equally, we launched Haven, probably about 18 months ago, and anyone across the country can type in their address, and really understand the types of risks that they might be subject to.

Speaker #3: But something around that sort of level. And so, if we do have more profit through those profit margins, or improved natural hazard experience relative to our expected, then that should generate obviously more capital, which should actually improve that ratio in the years where we get that.

Speaker #2: And importantly, actions that they can take to make their homes more resilient. At the same time, for Suncorp, we've got the My Home offering as well, that actually gives rebates on some everyday items if you take some of those actions.

Speaker #3: And lead to more opportunity for capital management in those years. Yeah.

Speaker #2: Customer feedback of those using those Haven and My Home has been really positive. And we'll continue to look to scale that. And then I know many people know, I talk about this often, but in the motor space, we get a lot around prevention.

Speaker #4: And if I can ask a third and final question from me: just can you remind us of your initiatives in terms of helping customers and communities deal with client impact?

Andre Sladni: If I can ask a third and final question from me. Can you remind us of your initiatives in terms of helping customers and communities deal with client impact? Are you offering incentives to help fund the transition or the risk management?

Andrei Stadnik: If I can ask a third and final question from me. Can you remind us of your initiatives in terms of helping customers and communities deal with client impact? Are you offering incentives to help fund the transition or the risk management?

Speaker #4: And are you offering incentives to help with funding the transition or with risk management?

Speaker #2: So Amy's Safe Driver tells you in terms of every drive, hey driving, how to be a better driver. Stop speeding, stop your braking, and again, there's pretty significant cash rebates on ampoule, mire, et cetera.

Speaker #1: Lisa, would you like to come up and talk about some of the initiatives that we're— I mean, obviously we've invested heavily in our disaster management capabilities.

Steve Johnston: Lisa, would you like to come up and talk about some of the initiatives that we're. Obviously, we've invested heavily in our disaster management capabilities. And what that allows us to do from a customer perspective is very much get on the front foot. So we've got meteorological capability now embedded in the organization, both short, medium, and long term. And typically we will see a good line of sight from our meteorologists around what's going to be happening in terms of the weather, and then we can deploy that disaster management capability through our management center out into the field in terms of making sure that we've got our resources appropriately set.

Speaker #2: So really pleased with the prevention work and that is making a difference. And over time, we'll look to continue to scale that.

Speaker #1: Okay, oh, I gave you three questions there, Andre, because you're good enough to come into the office. Tommo?

Speaker #1: And so typically, we will see good line of sight from our meteorologists around what's going to be happening in terms of the weather. And then we can deploy that disaster management capability through our management center out into the field.

Speaker #4: Thanks. Mark Tomlins, Hunt Green. With your new aggregate policy for five years, how should we be thinking about your intergroup reinsurance and how that impacts it?

Speaker #1: In terms of making sure that we've got our resources appropriately set.

Speaker #3: Yeah, it shouldn't that shouldn't have any particular impact on the intergroup reinsurance. So we did reduce the level of intergroup between Australia and New Zealand.

Speaker #2: Yeah, so in terms of—from a consumer perspective—prevention has been a core part of our strategy. And as Steve touched on, a lot of work in terms of disaster management, proactive alerts to customers, and then responding.

Lisa Harrison: Yeah. So in terms of from a consumer perspective, prevention has been a core part of our strategy, and as Steve touched on, a lot of work in terms of disaster management, proactive alerts to customers, and then responding. But equally, we launched Haven probably about 18 months ago, and anyone across the country can type in their address and really understand the types of risks that they might be subject to, and importantly, actions that they can take to make their homes more resilient. At the same time, for Suncorp, we have the My Home offering as well. That actually gives rebates on some everyday items if you take some of those actions. Customer feedback of those using those, Haven and My Home, has been really positive, and we will continue to look to scale that.

Speaker #3: Last year, but that's remained consistent for this year, and that's what we'd expect going forwards.

Speaker #4: Thanks. And you reduced your exposure to insurance-linked bonds during the half, and then we had the sort of an increase in inflation expectations and rise in interest rates.

Speaker #2: But equally, we launched Haven probably about 18 months ago, and anyone across the country can type in their address and really understand the types of risks that they might be subject to.

Speaker #4: You sort of regret doing it when you did, or you sort of mentioned that you're planning on further reducing your insurance-linked bond exposure.

Speaker #1: Well, let me just start the question, because I was involved in buying those things back in 2013. I always said that the minute you go to sell them, inflation will kick up.

Speaker #2: And importantly, actions that they can take to make their homes more resilient. At the same time, for Suncorp, we've got the My Home offering as well, which actually gives rebates on some everyday items if you take some of those actions.

Speaker #1: So that's obviously the law of the jungle. But.

Speaker #3: Yeah, look, we've done a lot of work on inflationary bonds, and that position to reduce exposure to them has been there for probably two years now, on the strategic asset allocation basis.

Speaker #2: Customer feedback of those using Haven and My Home has been really positive, and we'll continue to look to scale that. And then—I know many people know I talk about this often—but in the motor space, we did a lot around prevention.

Speaker #3: We don't need as many as we used to have, to manage the inflation in the claims portfolio. And anything above that is really a, you know, it's an unnecessary bet from our perspective on inflation.

Lisa Harrison: And then, I know many people know, I talk about this often, but in the motor space, we do a lot around prevention. AAMI Safe Driver tells you in terms of every drive, how you are driving, how to be a better driver, stop you speeding, stop you braking, and again, there is pretty significant cash rebates on Ampol, Myer, et cetera. So really pleased with the prevention work, and it is making a difference, and over time, we will look to continue to scale that.

Speaker #2: So Amy's Safe Driver tells you, in terms of every drive, "Hey, driving, here's how to be a better driver—stop speeding, stop your braking." And again, there are pretty significant cash rebates on AMPLE, Myra, et cetera.

Speaker #3: We try to pick the right time to do it, but sometimes it's hard to do that. But as I say, we've got a small residual rebalancing to do, and we'll try and pick the right time from an inflationary perspective to do that rebalancing.

Speaker #2: I'm really pleased with the prevention work and that it is making a difference. Over time, we'll look to continue to scale that.

Speaker #4: You mentioned that you've exited a broker portfolio in New Zealand, and it's meant to have broadly removed impacts for FY27. But how much should we expect the impact to be in first half 2027?

Speaker #1: Okay. Oh, I gave you three questions there, Andre, because you're good enough to come into the office. Tommo?

Steve Johnston: Okay. Oh, I gave you three questions there, Andre. You are good enough to come into the office. Tommo?

Speaker #4: Is there any.

Speaker #3: It's as small as one month.

Speaker #4: Okay, one month left. And then ASIC was out yesterday talking about motor insurance premium renewals and, you know, the poor job that was done in explaining the increases.

Speaker #4: Thanks. Matt, come on, Hunter Green. With your new aggregate policy for five years, how should we be thinking about your intergroup reinsurance, and how that impacts it?

[Analyst]: Thanks. Mark, I am on Hunter Green. With your new aggregate policy for five years, how should we be thinking about your intergroup reinsurance and how that impacts it?

Mark Tomlins: Thanks. Mark, I am on Hunter Green. With your new aggregate policy for five years, how should we be thinking about your intergroup reinsurance and how that impacts it?

Speaker #4: You know, you do a great job for us here in explaining what's going on. Is it just a case of poor communication?

Speaker #3: Yeah, that shouldn't have any particular impact on the intergroup reinsurance. So we did reduce the level of intergroup between Australia and New Zealand.

Jeremy Robson: Yeah. That shouldn't have any particular impact on the intergroup reinsurance. We did reduce the level of intergroup between Australia and New Zealand last year, but that's remained consistent for this year, and that's what we'd expect going forwards. Yeah.

Speaker #1: Well, I think it's you know, obviously we'd like to communicate better. We'd like customers to understand in more granular detail the components of the premium.

Speaker #3: Last year, but that's remained consistent for this year, and that's what we'd expect going forward.

Speaker #4: Thanks. And you reduced your exposure to insurance-linked bonds during the half, and then we had the increase in inflation expectations and a rise in interest rates.

Speaker #1: I mean, it is very it's not an easy thing. It's, you know, a lot of insurance is very difficult to understand, particularly on the reinsurance side, and getting customers to understand the impact of on their premium of things like reinsurance adjustments.

[Analyst]: Thanks. You reduced your exposure to insurance-linked bonds during the H1, then we had an increase in inflation expectations and rise in interest rates. You regret doing it when you did, or you mentioned that you're planning on further reducing your insurance-linked bond exposure.

Mark Tomlins: Thanks. You reduced your exposure to insurance-linked bonds during the H1, then we had an increase in inflation expectations and rise in interest rates. You regret doing it when you did, or you mentioned that you're planning on further reducing your insurance-linked bond exposure.

Speaker #4: You sort of regret doing it when you did, or you've sort of mentioned that you're planning on further reducing your insurance-linked bond exposure.

Speaker #1: But we do we have you know, I've been obviously engaged with ASIC, and I've certainly had many discussions with the Minister, Molino, its premium transparency is one of his top rating issues.

Speaker #1: Well, let me just start the question, because I was involved in buying those things back in 2013. I always said that the minute you go to sell them, inflation will kick up.

Steve Johnston: Well, let me just ask the staff the question because I was involved in buying those things back in 2013. I'd always said that the minute you go to sell them, inflation will kick up. So it's obviously the law of the jungle. But

Speaker #1: So, it's obviously the law of the jungle. But...

Speaker #1: I sit around the ICA table, the industry is aware of the challenge that the Minister has put to the industry around improving transparency. And I think that's going to be an inevitable improvement that we'll see.

Speaker #3: Yeah, look, we've done a lot of work on inflation-linked bonds, and that position to reduce the exposure to them has been there for probably two years now on the strategic asset allocation basis.

Jeremy Robson: Yeah. Look, we've done a lot of work on inflation-linked bonds, and that position to reduce exposure to them has been there for probably 2 years now on the strategic asset allocation basis. We don't need as many as we used to have to manage the inflation in the claims portfolio. Anything above that it's an unnecessary bet from our perspective on inflation. We try to pick the right time to do it, but sometimes it's hard to do that. As I say, we've got a small residual rebalancing to do, and we'll try and pick the right time from an inflationary perspective to do that rebalancing.

Speaker #1: It's just not easy, to do. And but it will need to get better, and we in terms of our strategy at Suncorp, we are you know, with the new policy administration designing pathways that will allow customers to have more understanding of the inputs into an insurance premium.

Speaker #3: We don't need as many as we used to have to manage the inflation in the claims portfolio. And anything above that is really—it's an unnecessary bet, from our perspective, on inflation.

Speaker #3: We try to pick the right time to do it, but sometimes it's hard to do that. But, as I say, we've got a small residual rebalancing to do.

Speaker #1: But critically for them, what they can do to reduce the risk and bring the premium down.

Speaker #3: And we'll try and pick the right time, from an inflationary perspective, to do that rebalancing.

Speaker #4: And finally, just on the management shakeup, is your new divisional heads got any plans for each of the divisions?

Speaker #4: You mentioned that you've exited a broker portfolio in New Zealand and it's meant to have broadly removed impacts for FY27. But how much should we expect the impact to be in the first half of '27?

[Analyst]: You mentioned that you've exited a broker portfolio over New Zealand, and it's meant to have broadly removed the impact for FY27, but how much should we expect the impact to be in the H1 2027?

Mark Tomlins: You mentioned that you've exited a broker portfolio over New Zealand, and it's meant to have broadly removed the impact for FY27, but how much should we expect the impact to be in the H1 2027?

Speaker #1: Well, I think what we might do, Tommo, with due regard, is give them a bit of time to get their feet under the desk, and we'll come back to that on in Investor Day with a portfolio rundown.

Speaker #4: Is there any.

Speaker #3: It's small. It's one month. Yeah, yeah.

Jeremy Robson: Small. There's one month.

Jeremy Robson: Small. There's one month. One month left. Yeah.

[Analyst]: Okay.

Jeremy Robson: One month left. Yeah.

[Analyst]: Perfect. ASIC was out yesterday talking about motor insurance premium renewals and the poor job that was done in explaining the increases. You do a great job for us here in explaining what's going on. Is it just a case of poor communication?

Mark Tomlins: Perfect. ASIC was out yesterday talking about motor insurance premium renewals and the poor job that was done in explaining the increases. You do a great job for us here in explaining what's going on. Is it just a case of poor communication?

Speaker #4: And then ASIC was out yesterday talking about motor insurance premium renewals and the poor job that was done in explaining the increases. You do a great job for us here in explaining what's going on.

Speaker #1: I'd make the point, you know, when we did the last organizational redesign and compressed a number of direct reports from eight to seven, which is probably you know, lower than most other ASX 100 companies.

Speaker #4: Is it just a case of poor communication?

Speaker #1: Well, I think it's obvious we'd like to communicate better. We'd like customers to understand, in more granular detail, the components of a premium. I mean, it's not an easy thing.

Steve Johnston: Well, I think obviously we would like to communicate better. We would like customers to understand in more granular detail the components of a premium. It is not an easy thing. A lot of insurance is very difficult to understand, particularly on the reinsurance side and getting customers to understand the impact on their premium of things like reinsurance adjustments. But we have been obviously engaged with ASIC, and I have certainly had many discussions with the Minister Mulino. Premium transparency is one of his top-rating issues, sit around the ICA table. The industry is aware of the challenge that the Minister has put to the industry around improving transparency, and I think that is going to be an inevitable improvement that we will see. It is just not easy to do.

Speaker #1: So that did give a bit of flexibility. I think that this is very much aligned to the strategy, very much aligned to leveraging the value that we see post the investments that we've made.

Speaker #1: A lot of insurance is very difficult to understand, particularly on the reinsurance side, and getting customers to understand the impact on their premium of things like reinsurance. We've obviously engaged with ASIC.

Speaker #1: But the important thing is these all the executives that are in the team, are very familiar to the new portfolios, as they were to the old.

Speaker #1: And particularly, you know, Michael's been the CFO for consumer insurance. He's run claims, he's run most of the parts of the engine there of consumer.

Speaker #1: And I’ve certainly had many discussions with the Minister, Molino. Its premium transparency is one of his top-rating issues. I sit around the ICA table.

Speaker #1: And Lisa similarly has run most of the parts of the commercial business. So I think, you know, the breadth and the strength and the quality of the team will mean that the transition will be reasonably seamless.

Speaker #1: The industry is aware of the challenge that the minister has put to the industry around improving transparency, and I think that's going to be an inevitable improvement that we'll see.

Speaker #1: And Bridget's got some great ideas and opportunities to drive that brand portfolio forward. And use AI in distribution as an adjunct to our demonstrable digital transactional distribution capabilities.

Speaker #1: It’s just not easy to do, but it will need to get better. In terms of our strategy at Suncorp, with the new policy administration, we are designing pathways that will allow customers to have more understanding of the inputs into an insurance premium, but critically for them, what they can do to reduce the risk and bring the premium down.

Steve Johnston: But it will need to get better, and in terms of our strategy at Suncorp, we are, with the new policy administration, designing pathways that will allow customers to have more understanding of the inputs into an insurance premium, but critically for them, what they can do to reduce the risk and bring the premium down.

Speaker #1: So I gave you four questions. So anything else in the room? Might go to the phone?

Speaker #2: Thank you, Steve. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced.

Speaker #4: And finally, just on the management shakeup, have your new divisional heads got any plans for each of the divisions?

[Analyst]: And finally, just on the management shake-up. Have the new divisional heads got any plans for each of the divisions?

Mark Tomlins: And finally, just on the management shake-up. Have the new divisional heads got any plans for each of the divisions?

Speaker #2: If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question.

Speaker #1: Well, I think what we might do, Tommo, with due regard, is give them a bit of time to get their feet under the desk.

Steve Johnston: Well, I think what we might do, Tommo, with Regard is give them a bit of time to get their feet under the desk, and we will come back to that in Investor Day with a portfolio rundown. I would make the point, when we did the last organizational redesign and compressed the number of direct reports from 8 to 7, which is probably lower than most other S&P/ASX 100 companies, so that did give a bit of flexibility. I think that this is very much aligned to the strategy, very much aligned to leveraging the value that we see post the investments that we have made. But the important thing is all the executives that are in the team are very familiar to the new portfolios as they were to the old. And particularly, Michael has been the CFO for consumer insurance. He has run claims.

Speaker #2: Your first question comes from Julian Braganza, with Goldman Sachs. Please go ahead.

Speaker #1: And we'll come back to that on Investor Day with a portfolio rundown. I'd make the point that when we did the last organizational redesign and compressed the number of direct reports from eight to seven—which is probably lower than most other ASX 100 companies.

Speaker #4: Good morning, guys. Thanks so much for taking our questions. Just a first one on the 80 basis points of profit commissions that you're saying is upside to your underlying margin.

Speaker #4: So that implies about close to 500 to 600 million dollars, kind of over the five-year period of the contract. I just want to understand one, how is that calculated?

Speaker #1: So that did give a bit of flexibility. I think that this is very much aligned to the strategy—very much aligned to leveraging the value that we see post the investments that we've made.

Speaker #4: Is there any is it on a best estimate basis? Is there any level of conservatism? Just want to understand how and also the formula, kind of how you're what are you accounting for that in that number?

Speaker #1: But the important thing is, all the executives that are in the team are very familiar with the new portfolios, just as they were with the old.

Speaker #1: Well, just we'll email the spreadsheet to you, Julian, if that makes it easy.

Speaker #3: Good try on the formula, Julian. But look, obviously the profit commission arrangements themselves are commercially sensitive. So we won't be talking about those. But the way that upside is presented on the chart is that's an annual you know, it's an annual number, obviously.

Speaker #1: And particularly, Michael's been the CFO for Consumer Insurance. He's run Claims. He's run most of the parts of the engine there of Consumer.

Steve Johnston: He has run most of the parts of the engine there of consumer. Lisa similarly has run most of the parts of the commercial business. I think the breadth, the strength, and the quality of the team will mean that the transition will be reasonably seamless. Bridget has got some great ideas and opportunities to drive that brand portfolio forward and use AI and distribution as an adjunct to our demonstrable digital transactional distribution capabilities.

Speaker #1: And Lisa, similarly, has run most of the parts of the commercial business. So I think the breadth, the strength, and the quality of the team will mean that the transition will be reasonably seamless.

Speaker #3: And the way we've done it is we include in the underlying ITR calculation the expected profit commission. So on an expected on an expected basis, there's a certain level of profit commission that we would expect to get.

Speaker #1: And Bridget's got some great ideas and opportunities to drive that brand portfolio forward and use AI in distribution as an adjunct to our demonstrable digital transactional distribution capabilities.

Speaker #3: With the with those both of those arrangements, in terms of the main cap one and the aggregate one, there is opportunity to earn well above the expected profit commissions.

Speaker #3: And it's that number then that appears into that 80 basis points. And the calculations are simply what is the what is the maximum amount of profit commission that we're able to achieve on those both of those programs?

Speaker #1: So, I gave you four questions. Is there anything else in the room? Otherwise, we might go to the phone.

Jeremy Robson: Great. Thank you very much.

Mark Tomlins: Great. Thank you very much.

Steve Johnston: I gave you four questions. Anything else in the room? Might go to the phone.

Speaker #2: Thank you, Steve. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced.

Operator: Thank you, Steve. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. Your first question comes from Julian Braganza with Goldman Sachs. Please go ahead.

Speaker #2: If you wish to cancel your request, please press star 2. If you're on a speakerphone, please pick up the handset to ask your question.

Speaker #3: Less what we have included in the underlying ITR.

Speaker #4: And is it fair to say that it's broadly equally split between the aggregate and the structured solution?

Speaker #2: Your first question comes from Julian Braganza with Goldman Sachs. Please go ahead.

Speaker #3: No. The upside is heavily skewed towards the aggregate cover. Because the way we've done the structured main cap one is reflected on the FY26 experience.

Speaker #4: Good morning, guys. Thanks so much for taking our questions. Just a first one on the AD basis points of profit commissions that you're saying is upside to your underlying margin.

Julian Braganza: Good morning, guys. Thanks so much for taking our questions. Just the first one on the 80 basis points of profit commissions that you are saying is upside to your underlying margins. So that implies about close to AUD 500 to AUD 600 million kind of over the five-year period of the contract. I just want to understand, one, how is that calculated? Is it on a best estimate basis? Is there any level of conservatism? Just want to understand, and also the formula, kind of what are you accounting for that-

Speaker #4: So that implies about close to $500 to $600 million over the five-year period of the contract. I just want to understand why.

Speaker #3: So obviously we had the giant hale in FY26 that did attach to that part of the program, which then impacts on the profit commissions there.

Speaker #4: How is that calculated? Is there any is it on the best estimate basis? Is there any level of conservatism? I just want to understand how and also the formula, kind of how you're what are you accounting for that in that number?

Speaker #3: So we've reflected that into it. Whereas the new aggregate one is a you know, it's a maiden program that's that doesn't have any losses attached to it to date.

Steve Johnston: Yeah.

Julian Braganza: -in that number?

Speaker #1: We'll just leave the spreadsheet to you, so it makes it easier.

Speaker #4: Again, that's clear. And then just a second question. So there's a fair bit of discussion on unit trends over second half '26, which is a bit weak.

Steve Johnston: Well, just know we-

Steve Johnston: Well, just know we- -we will email the spreadsheet to you, Julian. Yeah. I'd say--if it makes it easier.

Jeremy Robson: Yeah.

Steve Johnston: -we will email the spreadsheet to you, Julian.

Jeremy Robson: Yeah. I'd say-

Steve Johnston: -if it makes it easier.

Speaker #3: Good try on the formula, Julian. But look, obviously the profit commission arrangements themselves are commercially sensitive, so we won't be talking about those. But the way that upside is presented on the chart is, that's an annual—it's an annual number, obviously.

Jeremy Robson: Good try on the formula, Julian, but look, obviously the profit commission arrangements themselves are commercially sensitive, so we won't be talking about those. The way that upside is presented on the chart is it's an annual number, obviously. The way we've done it is we include in the underlying ITR calculation the expected profit commission. So on an expected basis, there's a certain level of profit commission that we would expect to get. With both of those arrangements, in terms of the main cat one and the aggregate one, there is opportunity to earn well above the expected profit commissions, and it's that number then that appears into that 80 basis points. The calculations are simply what is the maximum amount of profit commission that we're able to achieve on both of those programs, less what we have included in the underlying ITR.

Speaker #4: But a lot of the discussion as well now is about upside to margins well above that sort of 10 to 12 percent threshold. So I want to understand here, that the pricing versus volume dynamic or the margin versus volume dynamic, is more skewed in terms of margins?

Speaker #3: And the way we've done it is we include in the underlying ITR calculation the expected profit commission. So, on an expected basis, there's a certain level of profit commission that we would expect to get.

Speaker #4: So just want to understand, what is it what does this mean for pricing going forward? And is there a greater focus on volumes from here?

Speaker #3: With both of these arrangements, in terms of the main cap one and the aggregate one, there is an opportunity to earn well above the expected profit commissions.

Speaker #1: No. I think at the settings within the business, I think, you know, went through them in the earlier question. I mean, inflation is the biggest driver of our pricing position.

Speaker #3: And it's that number then that appears in those AD basis points. And the calculations are simply: what is the maximum amount of profit commission that we're able to achieve on both of those programs?

Speaker #1: And you've got to recognize that, you know, many in the industry will have different means of predicting what inflation might look like prospectively. But of course, in insurance, if you get behind, it takes a long time to catch up.

Speaker #1: So we'd like to be there or thereabouts or slightly ahead in terms of our assessment of inflation. Not only underlying CPI, but insurance inflation and particularly as it flows through the supply chain.

Speaker #3: Less what we have included in the underlying ITR.

Speaker #4: And is it fair to say that it's broadly equally split between the aggregate and the structured solution?

Julian Braganza: Is it fair to say that it's broadly equally split between the aggregate and the structured solution?

Speaker #1: And I expect that will remain elevated over the medium term. Some of the scarcity and pinch points that we're seeing in terms of housing trade availability, I think is going to continue to play out into elevated levels of inflation.

Speaker #3: No, the upside is heavily skewed towards the aggregate cover because the way we've done the structured main cap one is reflected on the FY26 experience.

Jeremy Robson: No. The upside is heavily skewed towards the aggregate cover.

Julian Braganza: Okay

Jeremy Robson: The way we have done the structured main cat one is reflected on the FY26 experience. Obviously we had the giant hail in FY26 that did attach to that part of the program, which then impacts on the profit commissions there. So we reflected that into it, whereas the new aggregate one is a maiden program that does not have any losses attached to it to date.

Speaker #3: So obviously, we had the giant hail in FY26 that did attach to that part of the program, which then impacts on the profit commissions there.

Speaker #1: So what that means is that if you've got a more precise predictive capability, as we believe we have, then we may get ahead of volume trends or slightly below volume trends.

Speaker #3: So we reflected that into it. Whereas the new aggregate one is a maiden program that doesn't have any losses attached to it to date.

Speaker #1: So that's the general approach to pricing. And it will see some variability in claims. I'd make the point that, you know, we've delivered those five at least five periods above 11 percent and most recently towards the top end of that range.

Speaker #4: Again, that's clear. And then just a second question. So, there's a fair bit of discussion on unit trends over the second half of '26, which is a bit weak.

Julian Braganza: Okay. No, that is clear. Just a second question. So, there is a fair bit of discussion on unit trends over H2 2026, which is a bit weak. But a lot of the discussion as well now is about upside to margins well above the sort of 10% to 12% threshold. So I want to understand here, the pricing versus volume dynamic or the margin versus volume dynamic is more skewed in terms of margins. So, just want to understand, what does it mean for pricing going forward? Is there a greater focus on volumes from here?

Speaker #4: But a lot of the discussion as well now is about upside to margins well above that sort of 10 to 12 percent threshold. So I want to understand here, the pricing versus volume dynamic, or the margin versus volume dynamic—is it more skewed in terms of margins?

Speaker #1: We do have to fund the aggregate cover now. And we're committing to continue to have those margins at the top end of the range.

Speaker #1: With an aggregate cover, with the cyclone reinsurance pool and so the, you know, the risk, you know, sort of profile of this business has changed material.

Speaker #4: So, I just want to understand: what does this mean for pricing going forward? And is there a greater focus on volumes from here?

Speaker #1: Materially. And we're continuing to maintain that discipline around top end of the range in terms of margin, with appropriate growth. And why do we believe we can do that?

Speaker #1: No, I think at the settings within the business— I think we went through them in the earlier question. I mean, inflation is the biggest driver of our pricing position.

Steve Johnston: No. I think at the settings within the business, I think I went through them in the earlier question. I mean, inflation is the biggest driver of our pricing position, and you have got to recognize that many in the industry will have different means of predicting what inflation might look like perspectively. But of course, in insurance, if you get behind, it takes a long time to catch up. So we would like to be there or thereabout or slightly ahead in terms of our assessment of inflation. Not only underlying CPI, but insurance inflation, and particularly as it flows through the supply chain. I expect that will remain elevated over the medium term. Some of the scarcity and pinch points that we are seeing in terms of housing trade availability, I think is going to continue to play out into the elevated levels of inflation.

Speaker #1: Because we see continued opportunity. We see continued opportunity around loss ratios. If you look at our loss ratio versus some of our competitors, it is slightly elevated.

Speaker #1: And you've got to recognize that many in the industry will have different means of predicting what inflation might look like, prospectively. But of course, in insurance, if you get behind, it takes a long time to catch up.

Speaker #1: Now, there's some good reasons for that. That a portfolio-related geography-related customer-related, but we believe we can bridge that gap. And we still believe there's opportunity in the expense space.

Speaker #1: So we'd like to be there or thereabouts, or slightly ahead, in terms of our assessment of inflation—not only underlying CPI, but insurance inflation, and particularly as it flows through the supply chain.

Speaker #1: You know, using AI as a productivity tool, you know, our workforce is significantly more productive than it's been. And we'll continue to go that way.

Speaker #1: And I expect that will remain elevated over the medium term. Some of the scarcity and pinch points that we’re seeing in terms of housing trade availability, I think, are going to continue to play out into elevated levels of inflation.

Speaker #1: So opportunity I think to keep that margin towards the top end of the range. But don't forget we are funding a aggregate cover. We've got a premium to pay there.

Speaker #1: There are some offsets, but we still have to pay that cover.

Speaker #1: So, what that means is that if you've got a more precise predictive capability, as we believe we have, then we may get ahead of volume trends or be slightly below volume trends.

Steve Johnston: So what that means is that if you have a more precise predictive capability as we believe we have, then we may get ahead of volume trends or slightly below volume trends. That is the general approach to pricing, and it will see some variability in claims. I would make the point that we have delivered those at least five periods above 11% and most recently towards the top end of that range. We do have to fund the aggregate cover now. We are committing to continue to have those margins at the top end of the range with an aggregate cover, with the cyclone reinsurance pool. The risk profile of this business has changed materially, and we are continuing to maintain that discipline around top end of the range in terms of margin with appropriate growth. Why do we believe we can do that?

Speaker #4: Okay. Got it. And then just to round out the last part of that answer, you don't really guide into any expense ratio benefits from here on into FY27.

Speaker #1: So that's the general approach to pricing, and you will see some variability in claims. I'd make the point that we've delivered at least five periods above 11%, and most recently towards the top end of that range.

Speaker #4: So I just want to understand why. And all those productivity efficiency benefits with AI, like is there isn't there more of an opportunity that could come through?

Speaker #4: Or is it more of an out-of-year conversation?

Speaker #3: Yeah. Look, I think that's a fair question, Julian. So we have guided to a flat, flat-ish, broadly flat operating expense ratio for FY27. And, you know, the drivers around it are we are we're still expecting to have some inflation in the cost base, wages, technology cost.

Speaker #1: We do have to fund the aggregate cover now, and we're committing to continue to have those margins at the top end of the range.

Speaker #1: With an aggregate cover, with the Cyclone Reinsurance Pool, and so the risk sort of profile of this business has changed materially. And we're continuing to maintain that discipline around the top end of the range in terms of margin with appropriate growth.

Speaker #3: Technology cost, you know, run at a fair clip. We're still investing in the business. So we're still expect to be investing, you know, through '27 as well.

Speaker #3: And the profile of the productivity operational efficiency benefits from some of these programs takes just a little bit of time to get up and spinning in terms of full run rate benefit.

Speaker #1: And why do we believe we can do that? Because we see continued opportunity. We see continued opportunity around loss ratios. If you look at our loss ratio versus some of our competitors, it is slightly elevated.

Steve Johnston: Because we see continued opportunity. We see continued opportunity around loss ratios. If you look at our loss ratio versus some of our competitors, it is slightly elevated. There are some good reasons for that are portfolio related, geography related, customer related, but we believe we can bridge that gap. We still believe there is opportunity in the expense base, using AI as a productivity tool. Our workforce is significantly more productive than it has been, and we will continue to go that way. So opportunity, I think, to keep that margin towards the top end of the range, but do not forget we are funding an aggregate cover. We have a premium to pay there.

Speaker #3: And so those dynamics together, we are expecting to see operational efficiency and improvements in FY27. But we're also expecting to see some underlying inflation and continued investment in the business, which keeps it flat for '27.

Speaker #1: Now, there are some good reasons for that—portfolio-related, geography-related, and customer-related—but we believe we can bridge that gap. And we still believe there's opportunity in the expense space.

Speaker #3: But to Steve's point, you know, there is a longer-term opportunity here for us on that expense ratio without doubt.

Speaker #1: Using AI as a productivity tool, our workforce is significantly more productive than it's been, and we'll continue to go that way. So, opportunity, I think, to keep that margin towards the top end of the range, but don't forget we are funding an aggregate cover.

Speaker #4: Got it. And just a last question for me. Just on reserving in the consumer business, I just want to understand any differences in inflation that you're calling out versus the system, given the reserving trends, just for consumer home and mortar.

Speaker #1: We've got a premium to pay there. There are some offsets, but we still have to pay that cover.

Speaker #4: And is that going to necessitate more of a pricing response or not really? I just want to understand how you kind of interplaying that into pricing.

Steve Johnston: There are some offsets, but we still have to pay that cover.

Speaker #4: Thanks.

Speaker #3: Yeah. Look, I mean, on reserving, prior reserve releases, we had some strengthening in particularly in motor a little bit at home. That was all in the first half, you know, we went through that at the first half results.

Speaker #4: Okay, got it. And then, just to round out the last part of that answer—you don't really guide to any expense ratio benefits from here on into FY27?

Julian Braganza: Okay, got it. Then just to round out the last part of that answer, you are not really guiding to any expense ratio benefits from here on in into FY27. I just do not understand why, and all those productivity efficiency benefits with AI, I guess, is not there more of an opportunity that could come through, or is it more of an out a year conversation?

Speaker #4: So I just want to understand why. And all those productivity and efficiency benefits with AI—isn't there more of an opportunity that could come through?

Speaker #3: It was around some of the timing around total loss and third-party claims way back in July. So that's not really a feature in the results beyond that.

Speaker #4: Or is it more of an out-of-year conversation?

Speaker #3: Yeah, look, I think that's a fair question, Julian. So, we have guided to a broadly flat operating expense ratio for FY27. The drivers around it are that we're still expecting to have some inflation in the cost base—wages, technology costs.

Jeremy Robson: Yeah, look, I think that's a fair question, Julian. We have guided to a flatish, broadly flat operating expense ratio for FY27. The drivers around it are, we are still expecting to have some inflation in the cost base, wages, technology costs. Technology costs run at a fair clip. We are still investing in the business. So we still expect to be investing through 2027 as well. The profile of the productivity operational efficiency benefits from some of these programs takes us a little bit of time to get up and spinning in terms of full run rate benefit. Those dynamics together, we are expecting to see operational efficiency and improvements in FY27, but we are also expecting to see some underlying inflation and continued investment in the business, which keeps it flat for 2027.

Speaker #3: In terms of working claims inflation, I said in the presentation that working claims inflation in motor and homes around the mid-single digit mark, which we have no reason to think is different to the rest of industry.

Speaker #3: Technology costs run at a fair clip. We're still investing in the business, so we still expect to be investing through '27 as well. And the profile of the productivity and operational efficiency benefits from some of these programs takes just a little bit of time to get up and spinning in terms of full run-rate benefit.

Speaker #3: You know, that's driven by in home, some escaping liquids, water damage, landlord covers, as we've seen rent coverage increase and some liability claims increase.

Speaker #3: And then in motor, it's largely been with some moderation in the parts and paint and labor and total loss for that matter. It's largely been in the windscreen and towage some of that in response to the Middle East fuel crisis.

Speaker #3: And so, with those dynamics together, we expect to see operational efficiency and improvements in FY27. But we're also expecting to see some underlying inflation and continued investment in the business.

Speaker #3: So we don't have any reason to believe that those would be significantly different to industry, except to say that when we look at our claims performance relative to industry, there's some stats you can look at there, that we tend to run slightly better than the rest of industry.

Speaker #3: Which keeps it flat for '27. But to Steve's point, there is a longer-term opportunity here for us on that expense ratio, without doubt.

Jeremy Robson: But to Steve's point, there is a longer-term opportunity here for us on that expense ratio, without doubt.

Speaker #1: And Julian, just finally on that point, one of the sleepers initiatives in the business is what we call home repair. It's our proprietary home repair business doing claims-related activity.

Speaker #4: Got it. And there's a last question from me. Just on reserving in the Consumer business, I just want to understand any differences in inflation that you're calling out versus the system, given the reserving trends, just for Consumer Home and Motor.

Julian Braganza: Got it. This is the last question from me. Just on reserving in the consumer business, just want to understand any differences in inflation that you are calling out versus the system, given the reserving trends just for consumer home and motor. Is that going to necessitate more of a pricing response or not really? I just want to understand how you are kind of interplaying that into pricing. Thanks.

Speaker #1: We've taken some steps recently, given what we see in terms of the outlook for claims inflation and supply chain challenges. We own that business.

Speaker #4: And is that going to necessitate more of a pricing response? I'm not really— I just want to understand how you're kind of interplaying that into pricing.

Speaker #4: Thanks.

Speaker #3: Yeah. Look, I mean, on reserving—prior reserve releases—we had some strengthening, particularly in motor and a little bit at home. That was all in the first half; we went through that at the first half results.

Speaker #1: And we've extended both its geographical footprint, so it's now covering the whole of Australia, and the sort of eligibility of claims that it will address.

Jeremy Robson: Yeah. Look, on reserving, prior reserve releases, we had some strengthening particularly in motor, a little bit at home. That was all in H1. We went through that at the H1 results. It was around some of the timing around total loss and third party claims way back in July. So that's not really a feature in the results beyond that. In terms of working claims inflation, I said in the presentation that working claims inflation in motor and home is around the mid-single digit mark, which we have no reason to think is different to the rest of industry. That's driven by, in home, some escape of liquids, water damage, landlord covers, as we have seen rent coverage increase and some liability claims increase. Then in motor, it's largely been with some moderation in the parts and paint and labor, and total loss for that matter.

Speaker #1: So we now have it doing escaping liquids type claims. Very successfully. This is going to be a very big part of our toolkit for this claims environment going forward.

Speaker #3: It was around some of the timing around total loss and third-party claims, way back in July. So that's not really a feature in the results beyond that.

Speaker #1: Give us access to more secure access to trades. We're working constructively with it alongside the rest of the panel. But it's going to be a very important initiative for us and doing very well over the last 12 months.

Speaker #3: In terms of working claims inflation, I said in the presentation that working claims inflation in motor and home is around the mid-single digit mark, which we have no reason to think is different to the rest of the industry.

Speaker #1: Okay. Let's go to the next question.

Speaker #2: Thank you. Your next question comes from Siddharth Parameswaran with JPMorgan. Please go ahead.

Speaker #3: That's driven by in-home—some escaping liquids, water damage, landlord covers—as we've seen rent coverage increase and some liability claims increase. And then in motor, it's largely been with some moderation in the parts and paint and labor, and total loss for that matter.

Speaker #4: Good morning, everybody. Just a couple of questions, if I can. Firstly, just on inflation versus what we're seeing in terms of GWP growth. Steve, you made some comments that, you know, you saw underlying inflation at around 6%.

Speaker #3: It's largely been in the windscreen and towage—some of that in response to the Middle East fuel crisis. So we don't have any reason to believe that those would be significantly different to industry, except to say that when we look at our claims performance relative to industry, there's some stats you can look at out there, that we tend to run slightly better than the rest of industry.

Jeremy Robson: It has largely been in the windscreen and towage, some of that in response to the Middle East fuel crisis. We do not have any reason to believe that those would be significantly different to industry, except to say that when we look at our claims performance relative to industry, there are some stats you can look at there, that we tend to run slightly better than the rest of industry.

Speaker #4: I think you gave a little bit of detail around motor and home being around 5%, I think. I think that's how I'm interpreting your numbers.

Speaker #4: But, you know, GWP growth ex the currency moves was 3.7% in the in FY26. And it was consistent first half and second half. So just want to understand, you know, your guidance is also you know, seems to be sub-inflation.

Speaker #1: And Julian, just finally on that point, one of the sleeper initiatives in the business is what we call Home Repair. It's our proprietary home repair business, doing claims-related activity.

Steve Johnston: Julian, just finally on that point, one of the sleepers initiatives in the business is what we call HomeRepair. It is our proprietary home repair business doing claims-related activity. We have taken some steps recently given what we see in terms of the outlook for claims inflation and supply chain challenges. We own that business, and we have extended both its geographical footprint, so it is now covering the whole of Australia, and the sort of eligibility of claims that it will address. So we now have it doing escape of liquids type claims very successfully. This is going to be a very big part of our toolkit for this claims environment going forward, give us more secure access to trades. We are working constructively with it alongside the rest of the panel. But it is going to be a very important initiative for us, and doing very well over the last 12 months.

Speaker #4: Going forward on GWP growth, I just want to make sure there's some consistency between your comments that you're basically pricing for inflation and just what we're guiding to on GWP growth.

Speaker #1: We've taken some steps recently, given what we see in terms of the outlook for claims inflation and supply chain challenges. We own that business.

Speaker #4: So maybe if you could break down where there might be inconsistencies in the numbers that have just highlighted.

Speaker #1: And we've extended both its geographical footprint, so it's now covering the whole of Australia, and the sort of eligibility of claims that it will address.

Speaker #1: Yeah. So I think one of the points is that, you know, the whole market has a different predictive capability around inflation. And again, to the point of our pricing discipline, it is to get ahead of inflation as best we can and be prospective around our pricing as best we can.

Speaker #1: So we now have it doing escaping liquids-type claims very successfully. This is going to be a very big part of our toolkit for this claims environment going forward.

Speaker #1: And so that will obviously have two components. One will be it'll lift the if we're pricing to a higher level of inflation, we'll lift the AWP.

Speaker #1: Give us access to more secure trades. We're working constructively with it alongside the rest of the panel, and it's going to be a very important initiative for us. It's performed very well over the last 12 months.

Speaker #1: But it may have some short-term detrimental impact on units if the rest of the market doesn't have that same predictive capability. So yeah.

Steve Johnston: But it is going to be a very important initiative for us, and doing very well over the last 12 months. Okay, let us go to the next question.

Speaker #1: Okay, let's go to the next question.

Speaker #3: And look, the it's a very broad spectrum of inflation. So you've got to break it down. Inflation in home and motor has been around the mid-single digit.

Steve Johnston: Okay, let us go to the next question.

Speaker #2: Thank you. Your next question comes from Siddharth Parameswaran with JP Morgan. Please go ahead.

Operator: Thank you. Your next question comes from Siddharth Parameswaran with J.P. Morgan. Please go ahead.

Speaker #3: So probably around that 5, maybe pushing into 6%, 5%. Our AWP in home has been ahead of that. Over the course of the year, in motor it was a little bit behind that.

Siddharth Parameswaran: Good morning, everybody. Just a couple of questions, if I can. Firstly, just on inflation versus what we are seeing in terms of GWP growth. Steve, you made some comments that you saw underlying inflation at around 6%. I think you gave a little bit of detail around motor and home being around 5%, I think. I think that is how I am interpreting your numbers. But GWP growth ex the currency moves was 3.7% in FY26, and was consistent H1 and H2. Just want to understand, your guidance also seems to be sub-inflation going forward on GWP growth. I just want to make sure there is some consistency between your comments that you are basically pricing for inflation and just what we are guiding to on GWP growth. Maybe if you could break down where there might be inconsistencies in the numbers that I have just highlighted.

Speaker #3: But we do that to, you know, over the course of the year to manage the portfolio. Over the course of the two halves, that's reversed a little bit.

Speaker #4: I think you gave a little bit of detail around motor and home being around 5%, I think. I think that's how I'm interpreting your numbers.

Speaker #3: So there is dynamism in the way that inflation pricing works across the portfolio. But we are quite confident that, as we sit here today, we're covering inflation in both home and motor particularly on working claims.

Speaker #4: But GWP growth, excluding the currency moves, was 3.7% in FY26, and was consistent in the first half and second half. So I just want to understand, your guidance also seems to be sub-inflation.

Speaker #3: The bigger challenge in home is the aggregate cover, of course, because most of that goes into the home portfolio. And we're seeking to, you know, with the other initiatives I spoke about, seeking to get that priced through.

Speaker #4: Going forward on GWP growth, I just want to make sure there's some consistency between your comments that you're basically pricing for inflation and what you're guiding to on GWP growth.

Speaker #3: But we will see home and motor moderate to in terms of underlying ITR back into the guidance the guide rails. But we're re confident we're pricing for underlying working claims inflation in home and motor today.

Speaker #4: So, maybe if you could break down where there might be inconsistencies in the numbers that you've just highlighted.

Speaker #1: Yeah, so I think one of the points is that the whole market has a different predictive capability around inflation. And again, to the point of our pricing discipline, it is to get ahead of inflation as best we can, and be prospective around our pricing as best we can.

Steve Johnston: Yeah. Sid, I think one of the points is that the whole market has a different predictive capability around inflation. Again, to the point of our pricing discipline, it is to get ahead of inflation as best we can and be prospective around our pricing as best we can. That will obviously have two components. One will be it will lift the, if we are pricing to a higher level of inflation, will lift the AWP, but it may have some short-term detrimental impact on units if the rest of the market does not have that same predictive capability.

Speaker #3: In terms of the AWP that we're seeing going through relative to that inflation. And then, you know, the concept of inflation in some of the other portfolios around commercial and workers' comp and the like, is a little different because it tends to be more around large loss dynamics but again, we're quite comfortable that we're pricing for inflation in those.

Speaker #1: And so that will obviously have two components. One will be, if we're pricing to a higher level of inflation, we'll lift the AWP.

Speaker #3: And we can see margin expansion coming through in CTP as we earn more premium through. And that's to get those products back to guide rail target underlying ITRs.

Speaker #1: But it may have some short-term detrimental impact on units if the rest of the market doesn't have that same predictive capability. So, yeah.

Speaker #3: We can see expansion coming through in packages, platforms as we as we remediate that Zealand, commercial is, you know, similar dynamics to Australia. And then the other thing we've seen in New Zealand is in motor, motor claims costs and frequency really fell away last year.

Speaker #3: And look, it's a very broad spectrum of inflation, so you've got to break it down. Inflation in home and motor has been around the mid-single digits.

Jeremy Robson: Yeah, look, it is a very broad spectrum of inflation, so you have got to break it down. Inflation in home and motor has been around the mid-single digits, so probably around that 5% maybe pushing into 6%, 5%. Our AWP in home has been ahead of that over the course of the year. In motor, it was a little bit behind that. But we do that over the course of the year to manage the portfolio. Over the course of the two halves, that has reversed a little bit. So there is dynamism in the way that inflation pricing works across the portfolio. But we are quite confident that as we sit here today, we are covering inflation in both home and motor, particularly on working claims. The bigger challenge in home is the aggregate cover, of course, because most of that goes into the home portfolio.

Speaker #3: So probably around that 5%, maybe pushing into 6%, 5%. Our AWP in home has been ahead of that. Over the course of the year, in motor it was a little bit behind that.

Speaker #3: And they've come back a little bit in a modest way in the second half of '26. And so you can particularly see that in AA in New Zealand, where we expect to continue to get growth in AWP in New Zealand.

Speaker #3: But we do that too, over the course of the year, to manage the portfolio. Over the course of the two halves, that's reversed a little bit.

Speaker #3: So, there is dynamism in the way that inflation pricing works across the portfolio. But we are quite confident that, as we sit here today, we're covering inflation in both Home and Motor, particularly on working claims.

Speaker #3: All probably with a little bit more AWP over unit growth. We had 3% odd unit growth in AA motor over FY26.

Speaker #1: Anything more, Sid?

Speaker #3: The bigger challenge in Home is the aggregate cover, of course, because most of that goes into the Home portfolio. And we're seeking to, with the other initiatives I spoke about, seeking to get that priced through.

Speaker #4: Okay. I do. Yeah. Just one question around just the increase in margins in commercial. I think you had underlying ITRs at 12.6% in the second half up from 9.2% in the first half.

Jeremy Robson: And we are, with the other initiatives I spoke about, seeking to get that price through. But we will see home and motor moderate too, in terms of underlying ITR back into the guide rails. But we are confident we are pricing for underlying working claims inflation in home and motor today, in terms of the AWP that we are seeing going through relative to that inflation. Then, the concept of inflation in some of the other portfolios around commercial and workers' comp and the like, is a little different because it tends to be more around large loss dynamics. But again, we are quite comfortable that we are pricing for inflation in those, and we can see margin expansion coming through in CTP as we earn more premium through. And that is to get those products back to a guide rail target underlying ITRs.

Speaker #3: But we will see home and motor moderate too, in terms of underlying ITR, back into the guidance, the guardrails. But we're confident we're pricing for underlying working claims inflation in home and motor today.

Speaker #4: I thought there may be some pressure there just given some of the comments that we hear in the market around, you know, what's happening with commercial pricing in aggregate.

Speaker #4: And I think you flag in your commentary, I think rates were flat in your largest segment within commercial. I mean, I know that there were increases in some of the personal injury classes.

Speaker #3: In terms of the AWP that we're seeing going through relative to that inflation, the concept of inflation in some of the other portfolios, around commercial and workers' comp and the like, is a little different. It tends to be more around large loss dynamics, but again, we're quite comfortable that we're pricing for inflation in those.

Speaker #4: But maybe you could just comment on either margins by, you know, by portfolio versus your targets or, you know, where was the improvement coming through?

Speaker #4: And, you know, should we not be concerned around some of the softness in the market? For the outlook?

Speaker #3: And we can see margin expansion coming through in CTP as we earn more premium. And that's to get those products back to guide rail target underlying ITRs.

Speaker #3: So Sid, again, you want to break commercial and personal injury down because it's quite a broad church of portfolios. We saw the margin expansion in both halves coming through CTP and workers' comp.

Speaker #3: We can see expansion coming through in packages and platforms as we remediate that business. And in New Zealand, commercial has similar dynamics to Australia. The other thing we've seen in New Zealand is that in motor, motor claims costs and frequency really fell away last year.

Jeremy Robson: We can see expansion coming through in packages, platforms as we remediate that business. In New Zealand, commercial is similar dynamics to Australia. The other thing we have seen in New Zealand is in motor. Motor claims costs and frequency really fell away last year, and they have come back a little bit in a modest way in H2 2026. You can particularly see that in AA in New Zealand, where we expect to continue to get growth in AWP in New Zealand, albeit probably with a little bit more AWP over unit growth. We had 3% odd unit growth in AA motor over FY26.

Speaker #3: Off the back of the pricing changes that we've been putting through those portfolios, we've put significant price through both Queensland and New South Wales and to some extent some rate in workers' comp and WA.

Speaker #3: That's what drove most of the margin increase in commercial. We've seen across property, for example, which is a relatively small part of the overall commercial and personal injury portfolio, but we have seen rate reduction there.

Speaker #3: And they've come back a little bit in a modest way in the second half of 2026. And so you can particularly see that in AA in New Zealand, where we expect to continue to get growth in AWP in New Zealand.

Speaker #3: All probably with a little bit more AWP over unit growth. We had 3% odd unit growth in AA Motor over FY26.

Speaker #3: We've seen rates down into the double digits, maybe 10%. But the market's probably down closer to 20. So we've done better than market. We've seen rates down in Profin.

Speaker #1: Anything more, Sid?

Speaker #3: But again, we're a lot tighter than the rest of market. Fleet has been a little bit of a change half on half. But the key driver to the growth in margins in commercial has been the personal injury.

Steve Johnston: Anything more, Sid?

Speaker #4: Okay, I do. Yeah, just one question around the increase in margins in Commercial. I think you had underlying ITRs at 12.6% in the second half, up from 9.2% in the first half.

Siddharth Parameswaran: Okay. I do, yeah. Just one question around just the increase in margins in commercial. I think you had underlying ITR, the 12.6% in H2, up from 9.2% in H1. I thought there may be some pressure there just given some of the comments that we hear in the market around what is happening with commercial pricing in aggregate. I think you flag in your commentary, I think rates were flat in your largest segment within commercial. I know that there were increases in some of the personal injury classes. Maybe you could just comment on either margins by portfolio versus your targets, or where was the improvement coming through and should we not be concerned around some of the softness in the market for the outlook?

Speaker #3: And we would still expect that to continue into FY27, as I said. Some of that rate still needs to earn through those portfolios. Still expect to see ongoing pressure in commercial into FY27.

Speaker #4: I thought there might be some pressure there, just given some of the comments that we hear in the market around what's happening with commercial pricing in aggregate.

Speaker #4: And I think you flagged in your commentary—I think rates were flat in your largest segment within Commercial. I mean, I know that there were increases in some of the personal injury classes.

Speaker #3: We expect to see a little bit of margin expansion in platforms in FY27 as we remediate that business. They're probably the key drivers.

Speaker #4: But maybe you could just comment on either margins by portfolio versus your targets, or where was the improvement coming through. And should we not be concerned around some of the softness in the market?

Speaker #4: Okay. Just one final quick question. Just competition. Just, you know, you did flag increasing competition in the second half in personal loans. I think you meant I think you were singling out motor.

Speaker #4: Just is it broad-based? Is it, you know, the challenger brands that are very common? Is that a yeah, maybe you just provide some color.

Speaker #4: For the outlook?

Speaker #3: So, Sid, again, you want to break commercial and personal injury down because it's quite a broad church of portfolios. We saw the margin expansion in both halves coming through CTP and workers' comp.

Jeremy Robson: So, Sid, again, you have got to break commercial and personal injury down because it is quite a broad church of portfolios. We saw the margin expansion in both halves coming through CTP and workers' comp, off the back of the pricing changes that we have been putting through those portfolios. We have put significant price through both Queensland, New South Wales, and to some extent, some rate in workers' comp in WA. That is what drove most of the margin increase in commercial. We have seen across property, for example, which is a relatively small part of the overall commercial and personal injury portfolio. We have seen rate reduction there. We have seen rates down into the double digits, maybe 10%, but the market is probably down closer to 20%, so we have done better than market. We have seen rates down in pro fin, but again, we are a lot tighter than the rest of market.

Speaker #1: Market leads very quickly to but, you know, you just got to watch the TV. You know, the marketing from some of the competitors has lifted materially through the last 12 months.

Speaker #3: Off the back of the pricing changes that we've been putting through those portfolios, we've put significant price through both Queensland and New South Wales, and to some extent, some rate in workers' comp and WA.

Speaker #1: I mentioned the brand portfolio, which we believe is in fantastic shape. The growth that we've seen in Bingle, the strength of AAMI, and Shannon's, our two key brands there.

Speaker #3: That's what drove most of the margin increase in Commercial. We've seen, across Property for example—which is a relatively small part of the overall Commercial and Personal Injury portfolio—but we have seen rate reduction there.

Speaker #1: I mean, it's clear that some of the premium brands Suncorp and GIO have, you know, been doing it a bit tougher in this environment, which is what you would expect.

Speaker #1: And we continue to look at options at opportunities there for us. But the competitive environment?

Speaker #3: We've seen rates down into the double digits, maybe 10%. But the market's probably down closer to 20%. So we've done better than the market. We've seen rates down in Profin.

Speaker #2: Yeah. Look, I think Steve, summarized it well. I'm sure anyone of us watching sport or on the TV would see it is competitive it is broad-based, whether it's challenges or some of the more established brands in terms of in that market.

Jeremy Robson: We have seen rates down in pro fin, but again, we are a lot tighter than the rest of market. Fleet has been a little bit of change H1 and H2. The key driver to the growth in margins in commercial has been the personal injury, and we would still expect that to continue into FY27. As I said, some of that rate still needs to earn through those portfolios. Still expect to see ongoing pressure in commercial into FY27. We expect to see a little bit of margin expansion in platforms in FY27 as we remediate that business. They are probably the key drivers.

Speaker #3: But again, we're a lot tighter than the rest of the market. Fleet has been a little bit of a change half-on-half. But the key driver to the growth in margins in commercial has been the personal injury.

Jeremy Robson: Fleet has been a little bit of change H1 and H2. The key driver to the growth in margins in commercial has been the personal injury, and we would still expect that to continue into FY27. As I said, some of that rate still needs to earn through those portfolios. Still expect to see ongoing pressure in commercial into FY27. We expect to see a little bit of margin expansion in platforms in FY27 as we remediate that business. They are probably the key drivers.

Speaker #2: And obviously, we've started to see the dynamics with some of the motoring clubs start to change. But to Steve's point, we feel really well positioned for the competitive environment.

Speaker #3: And we would still expect that to continue into FY27, as I said. Some of that rate still needs to earn through those portfolios. We still expect to see ongoing pressure in commercial into FY27.

Speaker #2: We have a strong multi-brand portfolio each brand is very specific to customer segments. So we can meet customers where they want to be met, which is something that is unique to Suncorp and you see in terms of some of the performance of those brands over the last year and years.

Speaker #3: We expect to see a little bit of margin expansion in Platforms in FY27 as we remediate that business. They're probably the key drivers.

Speaker #4: Okay, just one final quick question—just on competition. You did flag increasing competition in the second half in personal loans. I think you meant, or were singling out, motor?

Siddharth Parameswaran: Okay. Just one final quick question. Just competition. You did flag increasing competition in the H2 in personal lines. I think you were singling out motor. Is it broad based? Is it the challenger brands in various comments? Maybe you just provide some color.

Speaker #2: Equally, in terms of we've got great capabilities around pricing, underwriting, and claims management. And claims management, I'll touch on in terms of we've got great scale.

Speaker #4: Just is it broad-based? Is it the challenger brands that are very common? Is that a yeah. Maybe you could just provide some colour.

Speaker #2: And many of you remember when we spoke about the half for the consumer results. Obviously, natural hazards played a bit of a role there.

Speaker #1: Market leads very quickly too, but you just have to watch the TV. The marketing from some of the competitors has lifted materially through the last 12 months.

Steve Johnston: Might get Lisa very quickly. You just got to watch the TV. The marketing from some of the competitors has lifted materially through the last 12 months. I mentioned the brand portfolio, which we believe is in fantastic shape. The growth that we have seen in Bingle, the strength of AAMI, and Shannons, our two key brands there. It is clear that some of the premium brands, Suncorp and GIO have been doing a bit tougher in this environment, which is what you would expect. We continue to look at options, at opportunities there for us. The competitive environment.

Speaker #2: And we go back to November last year. We're probably close to 15 or 20,000 claims. And we were able to use our scale, our expertise of our people to assess 500 cars each and every day through our mass assessments.

Speaker #1: I mentioned the brand portfolio, which we believe is in fantastic shape—the growth that we've seen in Bingle, and the strength of AAMI and Shannons, our two key brands there.

Speaker #2: And that's something that matters for consumer insurance to be great at claims. And something we're putting some big investments through. So whilst it is a very competitive environment and you'll see, you know, strong margins in the consumer portfolio, it feels that we're very well positioned to compete in this environment.

Speaker #1: I mean, it's clear that some of the premium brands—Suncorp and GIO—have been doing it a bit tougher in this environment, which is what you would expect.

Speaker #1: Okay. Thanks, Sid.

Speaker #1: And we continue to look at options and opportunities there for us. But the competitive environment?

Speaker #2: Thank you. Your next question comes from Kieren Chidgey with UBS. Please go ahead.

Speaker #2: Yeah. Look, I think Steve summarised it well. I'm sure anyone of us watching sport or on the TV would see it is competitive, it is broad-based, whether it's challengers or some of the more established brands in that market.

Lisa Harrison: Yeah, look, I think Steve summarized it well. I am sure any of us watching sport or on the TV would see it is competitive. It is broad based, whether it is challengers or some of the more established brands in terms of in that market. Obviously we have started to see the dynamics with some of the motoring clubs start to change. To Steve's point, we feel really well positioned for the competitive environment. We have a strong multi-brand portfolios. Each brand is very specific to customer segments, so we can meet customers where they want to be met, which is something that is unique to Suncorp, and you see in terms of some of the performance of those brands over the last year and years. Equally, in terms of we have got great capabilities around pricing, underwriting, and claims management.

Speaker #4: Good morning, guys. A couple of questions. I'd like to start by going back to some of the discussion around volume trends in home and motor and just be clear maybe on two things.

Speaker #4: I mean, Steve, you very clear that, you know, you're pricing prospectively for a view on inflation. You don't want to get behind there, which I fully appreciate.

Speaker #2: And obviously, we've started to see the dynamics with some of the motoring clubs start to change. But to Steve's point, we feel really well-positioned for the competitive environment.

Speaker #4: What I'm keen to understand alongside that is just the impulse of the aggregate cover in your view, does that require you to price above system?

Speaker #2: We have a strong multi-brand portfolio; each brand is very specific to customer segments. So we can meet customers where they want to be met, which is something that is unique to Suncorp—and you see that in terms of some of the performance of those brands over the last year and years.

Speaker #4: You know, at the moment, particularly in home. And is that sort of having an impact in your view on the volumes you've achieved through second half?

Speaker #2: Equally, in terms of—we've got great capabilities around pricing, underwriting, and claims management. And claims management I'll touch on, in terms of—we've got great scale.

Speaker #1: Look, I think we obviously I mentioned through the I mean, the aggregate cover does come at a cost. There's a premium attached to it.

Lisa Harrison: Claims management, I will touch on in terms of we have great scale, and many of you remember when we spoke about the half for the consumer results, obviously natural hazards played a bit of a role there. When we go back to November last year, we are probably close to 15,000 or 20,000 claims, and we were able to use our scale, our expertise of our people to assess 500 cars each and every day through our mass assessments. That is something that matters for consumer insurance to be great at claims, and something we are putting some big investments through. So whilst it is a very competitive environment, and you will see strong margins in the consumer portfolio, it feels that we are very well positioned to compete in this environment.

Speaker #1: The components of how we seek to offset that by and large and this is a broader assessment of it are through benefits that we've got through the reinsurance placement on the cap cover, cap program, which, you know, against any measure was a very good outcome for us in terms of the savings there relative to the PCP.

Speaker #2: And many of you remember when we spoke about the half for the Consumer result. Obviously, natural hazards played a bit of a role there.

Speaker #2: And we go back to November last year. We were probably close to 15,000 or 20,000 claims, and we were able to use our scale and the expertise of our people to assess 500 cars each and every day through our mass assessments.

Speaker #2: And that's something that matters for consumer insurance—to be great at claims. And it's something we're making some big investments in. So, whilst it is a very competitive environment and you see strong margins in the consumer portfolio, it feels that we're very well positioned to compete in this environment.

Speaker #1: Then the second part of that is the opportunity we believe that exists on loss ratio. And I think Kieran, you'd be understanding very much where our loss ratio sits relative to some of our competitors.

Speaker #1: Some of that structural, some of it we believe we can get at through a program of work, which we're doing. And then there's the expense program that we have in, which is, you know, AI, CCT, which is claims and customer transformation.

Speaker #1: Okay.

Steve Johnston: Okay.

Speaker #4: Thank you very much.

Speaker #1: Thanks, Sid.

Siddharth Parameswaran: Thank you very much.

Steve Johnston: Thanks, Sid.

Speaker #2: Thank you. Your next question comes from Kieran Chidkey with UBS. Please go ahead.

Operator: Thank you. Your next question comes from Kieren Carman with UBS. Please go ahead.

Speaker #1: And other expense initiatives that we believe will go there. So in the and there will be some pricing. There's no doubt there will be some pricing initiatives that we'll put through.

Speaker #4: Good morning, guys. A couple of questions. I'd like to start by going back to some of the discussion around volume trends in Home and Motor, and just be clear maybe on two things.

Kieren Carman: Morning, guys. A couple of questions. I'd like to start by going back to some of the discussion around volume trends in home and motor, and just be clear maybe on two things. I mean, Steve, you're very clear that your pricing prospectively for a view on inflation, you don't want to get behind there, which I fully appreciate. What I'm keen to understand alongside that is just the impost of the aggregate cover. In your view, does that require you to price above system at the moment, particularly in home? Is that sort of having an impact, in your view, on the volumes you've achieved through H2?

Kieren Chidgey: Morning, guys. A couple of questions. I'd like to start by going back to some of the discussion around volume trends in home and motor, and just be clear maybe on two things. I mean, Steve, you're very clear that your pricing prospectively for a view on inflation, you don't want to get behind there, which I fully appreciate. What I'm keen to understand alongside that is just the impost of the aggregate cover. In your view, does that require you to price above system at the moment, particularly in home? Is that sort of having an impact, in your view, on the volumes you've achieved through H2?

Speaker #1: But they sort of come in that order. The benefits on the cap that we've got through the renewal, the loss ratio work that we're focused on, expense continued expense management, and then some pricing initiatives in both home and motor.

Speaker #4: I mean, Steve, you’ve been very clear that your pricing, perspectively for your view on inflation, you don’t want to get behind there, which I fully appreciate.

Speaker #3: And the profit commission as well that we expect to get through. And Steve, the point I'd make on reinsurance is what we are not saying is that the reinsurance delta relative to last year will help fund that aggregate cover.

Speaker #4: What I’m keen to understand alongside that is just the impulse of the aggregate cover, in your view. Does that require you to price above system at the moment, particularly in home?

Speaker #3: What we're saying is it's the delta between what we achieved and what we understand the rest of the market achieved. So we would understand right on line, for one July renewals to be down somewhere 13, 15 percent in the market, we did a fair bit better than that.

Speaker #4: And is that, sort of, having an impact in your view on the volumes you've achieved through the second half?

Speaker #1: Look, I think we—obviously I mentioned—through the, I mean, the aggregate cover does come at a cost. There’s a premium attached to it.

Steve Johnston: Look, I think we obviously I mentioned through the aggregate cover does come at a cost. There's a premium attached to it. The components of how we seek to offset that by and large, and this is a broader assessment of it, are through benefits that we've got through the reinsurance placement on the CAT cover, CAT program, which against any measure was a very good outcome for us in terms of the savings there relative to the PCP. Then the second part of that is the opportunity we believe that exists on loss ratio. I think you, Kieran, you'd be understanding very much where our loss ratio sits relative to some of our competitors. Some of that's structural, some of it we believe we can get at through a program of work, which we're doing.

Speaker #3: So yeah, it's that delta that we would consider to deploy to cover the aggregate premium. Because that's the bit where we're better than market.

Speaker #1: The components of how we seek to offset that, by and large—and this is a broader assessment of it—are through benefits that we've got through the reinsurance placement on the cap cover, the cap program, which against any measure was a very good outcome for us in terms of the savings there relative to the PCP.

Speaker #4: Okay. And sort of when we look forward in terms of your GWP, commentary for '27, yeah, what are sort of within consumer, what are the expectations from a volume or unit perspective?

Speaker #1: Then the second part of that is the opportunity we believe exists on loss ratio, and I think, Kieran, you would understand very much where our loss ratio sits relative to some of our competitors.

Speaker #3: Yeah. So in that GWP, growth outlook of 3 to 5 percent for home, we'd assume units are reasonably consistent with where they've been for the last few halves, which is flattish.

Speaker #1: Some of that is structural; some of it we believe we can address through a program of work, which we’re doing. Then there’s the expense program that we have in place, which is why ICCT—which is Claims and Customer Transformation—and other expense initiatives, we believe, will contribute there.

Speaker #3: Which we would sort of expect is not too different from system. So we don't think system growth in home has been much different to that.

Steve Johnston: Then there's the expense program that we have in, which is AI, CCT, which is claims and customer transformation, and other expense initiatives that we believe will go there. There will be some pricing. There's no doubt there will be some pricing initiatives that we'll put through. But they sort of come in that order. The benefits on the CAT that we've got through the renewal, the loss ratio work that we're focused on, continued expense management, and then some pricing initiatives in both home and motor.

Speaker #3: And we don't expect it to be much different to that. And in motor, we'd expect to get a little bit of improvement on our retention rates through some of the brand work that Lisa spoke about, that will improve the unit growth relative to the second half.

Speaker #1: So, in the end, there will be some pricing. There's no doubt there will be some pricing initiatives that we'll put through, but they sort of come in that order.

Speaker #1: The benefits on the cap that we've got through the renewal, the loss ratio work that we're focused on, continued expense management, and then some pricing initiatives in both home and motor.

Speaker #3: So we probably expect to see unit growth similar to FY '26 in FY '27. And as I said, the other component, I mean, the main component to GWP AWP.

Jeremy Robson: The profit commission as well that we expect to get through. Steve, the point I'd make on reinsurance is what we are not saying is that the reinsurance delta relative to last year-

Speaker #3: And that's pretty consistent in motor with where we're pricing today.

Speaker #1: And Kieran, like everything in insurance, is a substory sitting behind the first tier of the story. And while we talk about reasonably flat unit count in home over the past two or three years, the composition of the home portfolio has changed materially: low, medium, high risk, underwriting.

Speaker #1: We have fundamentally changed the composition of that with a bias more to low and medium risk underwriting. And so in that context, you know, a flat unit count is fine with grown in low and medium risk areas.

Speaker #4: All right. Thanks. And second question, just on your slide 19, I'm quite interested in, I guess, the reinsurance profit commission element. You talked there.

Speaker #4: So Jeremy, you said there's an expected sort of contribution now sitting in that underlying margin, but the 80 basis points is, I guess, a maximum above that that you could earn.

Speaker #4: I mean, if yeah, the back testing you've shown on slide 19 is obviously more around the cap budget. What would the reinsurance profit commission upside look like historically, sort of overlaid on that 10 and 15-year period?

Speaker #3: Yeah. We don't have that to hand, Kieran. But the way that is the maximum. And so, for example, for the aggregate cover, it assumes that it assumes that we don't you know, the maximum profit commission assumes that we don't call on the aggregate cover.

Speaker #3: During a year. And you can see from the chart those years where we haven't haven't effectively where we haven't haven't called on the aggregate cover.

Speaker #3: So they'll give you a bit of a sense around the, you know, the variability in then the main cap sublayer one, the 150 above 350, we don't give the details on that.

Speaker #3: But that's a it's a relatively smaller part of that upside profit commission in the outlook because we've limited it because of the experience in FY '26.

Speaker #3: I mean, the actual upside in that program is significantly more than what we've got on that slide. But we've limited it here because we did have the burn in FY '26.

Speaker #4: I've kept the 50 mil above budget. You still earn the maximum. On the ag.

Speaker #3: If the cats. Yeah. If the cats if the cats in line with or below that 50 million above the allowance, then we would earn the profit commission.

Speaker #3: Yeah.

Speaker #4: Right. In what point does it go to zero? Can you give us an indication?

Speaker #3: At what point does the profit commission go to zero?

Speaker #4: Yep.

Speaker #3: I probably can't actually, Kieran, because that would be giving you a that's the commercially sensitive number in there. Yeah.

Speaker #4: All right. In your approach, Jeremy, to booking this, I mean, it's a five-year contract.

Speaker #3: Yep.

Speaker #4: Your peer is suggested they're being conservative early on, just given sort of the multi-year nature. How does some call likely to approach this?

Speaker #3: I think similarly, but just acknowledging that this is a you know, this is going to be subject to the vagaries of IFRS 17 and this GMM valuation model, which has complexity attached to it.

Speaker #3: So I expect that over the course of the five years, there'll be some variability around the way it's recognized in the actual P&L. But obviously, you know, come the end of the five years, it'll be what it'll be.

Speaker #3: But just acknowledge there is some complexity in the way the accounting treatment around this works. And yet we will try to be you know, as we are with most things, are on the side of prudence.

Speaker #4: Okay. And just a quick third and final question. The reserve release, you know, very good this period, plus you've looks like you're normalized assumptions ticked up a little bit for the year ahead.

Speaker #4: I'm just wondering if you've changed views on inflation sort of any what is driving that higher outlook?

Speaker #3: Yeah. No. The fundamental inflation assumptions superimposed inflation assumptions remained unchanged in the current valuation, the latest valuations. But the thing we have done is added on just that prudent level of risk margin on the valuations just to give some nod to the current geopolitical uncertainty.

Speaker #3: And that impacts on claims, risk margin on claims, which is in the P&L, but then also impacts on risk margin on premium liabilities, which is in the capital as well.

Speaker #4: All right. I'll leave it there. Thank you.

Speaker #1: Thank you.

Speaker #3: Thank you.

Speaker #2: Thank you. Your next question comes from Nigel Pittaway with Citi. Please go ahead.

Speaker #4: Hi, guys. Just like to delve a little bit more about the sort of pricing in and your ability to keep pricing above what you describe as elevated inflation.

Speaker #4: I mean, do you have any concerns about your ability to stay ahead of that? I mean, it's interesting when you sort of talking about home system growth, you sort of saying that's subdued and you sort of sort of describing some of that to the Middle East conflict.

Speaker #4: But I mean, is the reason just I wonder, is one of the reasons why home system growth is subdued is because affordability concerns are very real and therefore, you know, that presents some risk to your ability to be able to price above these elevated inflation levels moving forward?

Speaker #1: Yeah. No, I mean, not disavowing the concept of affordability. You know, insurance premiums have now become a very material or a material part of the household budget.

Speaker #1: So we are very conscious of that. And you can to some extent see that playing out through our multi-brand portfolio. You know, Amy doing very strongly, Bingle doing very strongly, Shannon's doing very strongly, a bit of pressure on GIO and Suncorp given they are the premium at the premium end of the equation.

Speaker #1: In terms of our ability to do it, I mean, it is a fundamental principle that we have that you need to price to inflation.

Speaker #1: Again, you know, we believe we've got good perspective capability around that. We should have a scale benefit given the scale we've got. In our business, both in terms of underwriting and in claims to do better than the market.

Speaker #1: So it's a principle that we adhere to. It will see unit count volume count move around a little bit half on half. Period to period.

Speaker #1: But we think through the longer term, if we deploy our scale effectively, if we focus on loss ratios, if we drive our expense base appropriately, then and continue to use that scale across the business, things like home repair, we will be able to cover inflation and we will be able to grow units.

Speaker #1: Not substantially ahead of market, but with market and slightly ahead.

Speaker #3: The only thing I'll just add on home in particular is, you know, some of that cost of living pressure is there's obviously an AWP our ability to price component to it.

Speaker #3: But the other one is the customer's ability to manage their own profile. And we have certainly seen with our AWP growth the impact of change in mix.

Speaker #3: So we've seen customers are taking modestly more and higher excesses in both home and motor. We've seen the mix impact for us of the skew towards lower risk properties, obviously a lower risk property has a lower average written premium.

Speaker #3: We've seen some of the mix impact in our portfolio around in home, the Terry Sheer rest of the portfolio, Terry Sheer's got a lower average premium.

Speaker #3: So that mix impact is also evident in particular more so home than motor, but a little bit in motor. And we've allowed for that in our growth that those dynamics in our growth outlook.

Speaker #4: Okay. Thank you for that. And then sort of maybe just also sort of recircling on one of the other questions on the expense ratio guidance, but also as a particular to AI, I mean, you know, obviously all the investment you've made in AI looks impressive.

Speaker #4: It looks as though you've got a lot going. But in terms of sort of hard nose shareholder stroke financial outcomes, how should we actually think about, you know, what AI might do for the business moving forward?

Speaker #4: I mean, is it even right to focus on cost reduction? Should we be looking more at revenue enhancement? How should we be thinking this about this through a sort of hard financial lens?

Speaker #1: Well, I'll just get Adam up very quickly to give a quick summary.

Speaker #5: Yeah. Thanks, thanks for the question. And I think not surprising to me that the whole market is shifting its focus from not just what you're doing, but what value you're realizing from it.

Speaker #5: I think your overall thesis is absolutely right that this is much broader than just purely an efficiency and a productivity play. I think there's revenue growth, fraud, claims cost, expense related opportunities.

Speaker #5: I think it covers the broad church. And as Steve covered in the slide earlier, you need the strong foundations to be able to exploit that at scale.

Speaker #5: That's about the technology foundations, that's about the people and workforce capabilities, it's about the risk and safety, it's around the governance, it's the partnerships that you have.

Speaker #5: And the area where we see AI delivering the most impact across all of those drivers is where we're not just deploying things in a point basis and kind of quite discreet use cases, which is, I think, where many companies, including us, have been over the last few years.

Speaker #5: But when you're looking to completely reimagine end-to-end processes, and we've picked customer service, claims, and the end-to-end technology delivery life cycle as kind of the three areas where we're looking for much more transformative impact that picks up on all of those levers.

Speaker #5: And I think it would be fair to say we and every company is pretty early days, but we have had some market early deployments in that more transformative opportunity in the last few months.

Speaker #5: So we've deployed a new agentic voice capability that allows a customer to, when they call in through the voice channel, have an agent that provides them with assistance prior to lodging a claim.

Speaker #5: We'll extend that towards the back end of this year to do a full first notice of loss. And then in home claims, we've just launched an end-to-end capability that once the claim's been lodged, a series of agents working with humans and more traditional deterministic outcomes to do a whole range of things to assess the loss scales, the coverage, whether customer needs a makesafe or temporary accommodation, and a lot of the assessment related activity to then provide the claims manager with a kind of an integrated view of what to do next.

Speaker #5: So that's where we see you start to drive the more significant opportunity. But as I think Steve and Jeremy covered, that's a bit longer dated and, you know, where we believe we've got the foundations, but early in terms of the deployment of that at scale.

Speaker #5: And as we alluded to, certainly look forward to a share a bit more color on that in the October. Invest today.

Speaker #1: Slide.

Speaker #4: Okay. Yeah. Just one final one, if I can, just it's a bit more in the weeds, but just there's a mismatch loss of about 45 mil, which is a bit higher than it's been for a while.

Speaker #4: Anything particular going on there? Is it just sort of BAU stuff or what sort of?

Speaker #3: No. I mean, it's it is in the weeds. It's a bit nitral, but it depends on what you put into mismatch. So, you know, is that the liquidity premium differential?

Speaker #3: Is the earnings on the premium liabilities? I don't know where those are going in your maths, but in underlying mismatch terms, we actually had a small gain for the year.

Speaker #3: So maybe we can take it offline and dig into why we've got what the difference, but in underlying mismatch terms, we try to limit that mismatch as absolutely much as possible.

Speaker #3: And this year we had a small gain.

Speaker #1: Underlying mismatch. Okay. Let's go to the next.

Speaker #4: Okay. Okay. Yeah.

Speaker #1: You pick it up the servo nitro?

Speaker #3: Yeah.

Speaker #4: Yeah. Yeah. That props. Yeah.

Speaker #1: Okay.

Speaker #2: Your next question comes from Andrew Buncombe with Macquarie. Please go ahead.

Speaker #4: Hi, Sam. Thanks for taking my questions and welcome back, Steve. I hope you're feeling better. Just two questions on the capital side, please. Just in terms of your capital usage, just how are you and the board thinking about buybacks compared to the repurchase of debt with where the stock is currently trading?

Speaker #4: Thanks.

Speaker #3: Yeah. I mean, look, we optimize our debt's obviously a lower cost of capital and equity. And so we just optimize that relative to the APRA standards.

Speaker #3: And then the diversification benefit, we can get across New Zealand. But the amount of debt we hold is optimized relative to those conditions. And so we don't trade off the two per se, which is make sure that we've got that debt level optimized.

Speaker #4: Yeah. And then maybe we'll go into this in more detail at the investor day in a couple of months, but just interested in your investment in the core technology stack and how should we be thinking about capex in FY27.

Speaker #4: Thanks.

Speaker #1: Yeah. And, you know, we talked probably a bit more about AI than we did about our platform modernization agenda, AI being an operational transformation initiative.

Speaker #1: We have a series of activities that have started with data, went through pricing, and now in policy administration. That program remains on track. As we have previously talked to the market about, and we'll continue to update that through the course of the investor day and beyond.

Speaker #1: And then the OT piece in with a predominance of AI, we'll talk to as well. In terms of capitalization.

Speaker #3: Yeah, Steve, I'll just say that, you know, we don't see any change in the run rate relative to what we've got in '26. And so that change in capital impact from capitalization and amortization would expect to be reasonably consistent into FY27.

Speaker #3: And allowed for in that circa 20% for organic usage that I referred to.

Speaker #4: Right. That's it from me. Thank you.

Speaker #1: Michelle, did you want to? Yeah. Quick question in the room.

Speaker #2: Hi. Michelle Leong from Australian Ethical. I just wanted to know why did you do better than the market on your reinsurance pricing? What was the reinsurers saw in Suncorp's business or why?

Speaker #3: Yeah. Look, I think the difference we can deploy is the scale. So, you know, we're a very attractive opportunity for our reinsurance partners. And that's worth something in the market.

Speaker #3: So, you know, I can't talk to how people do their relative negotiations, but we've got a good outcome. And, you know, we had challenged and pushed our main reinsurance partners to help us out with the aggregate cover, which didn't happen in the end.

Speaker #3: And I think, you know, with all that supply demand and shifts around the program, we managed to deploy a little bit more competitiveness on the main cap part of it.

Speaker #2: But that's relative to smaller players, not necessarily to your largest competitor.

Speaker #3: Well, they don't do a they don't have so much of that one July renewal. So, but yeah, certainly would be relative to those others who did renew in that one July.

Speaker #3: Yeah.

Speaker #2: And I was wondering, I'm not sure if you really disclosed this, so apologies if I've missed it. With your skew to lower risk properties, could you show maybe annual average loss per policy improvement over time or something where we can see evidence of that improvement in the lower risk properties?

Speaker #3: Yeah. I mean, we could certainly take that on notice to see if that's something we disclose. But, you know, just to put some dimensionalization around it, three, four years ago, we would have had 12.1% of our homes in what we call high risk.

Speaker #3: And now it's closer to 7 or 8%. So, you know, it's a slow moving shift. So you're probably not going to see much that much of an impact year on year.

Speaker #3: But over a five-year period, it becomes more noticeable.

Speaker #1: Thank you. Last question on the phones.

Speaker #2: Thank you. Your final question comes from Freya Kong with Bank of America. Please go ahead.

Speaker #5: Hi. Thanks for taking our questions. Can I just drill into slide 18 and the capital walk? Would you be able to split out a bit more detail the net organic capital generation in the second half?

Speaker #5: Because you printed profits of 760, less dividends, 180, which still gets us to 580, but then net organic capital generation was minus 57. And I know you called out the FX reserve movement and charged for geopolitical risk, but could you split these out for us?

Speaker #3: So the, I mean, the profit number is you've got that and the dividend, you've got that and the in terms of the net, the net organic usage that we had in the second half is largely out of those two items I spoke about, which is the risk margin which you're probably work out somewhere in the deep in the accounts when you get to it is around 60 million dollars for capital, around 40 million dollars in the P&L.

Speaker #3: And then the FCTR impact, which again, you'll get to in the accounts when you get to them was so it's not private, was about 50 million dollars of impact.

Speaker #3: So those two combined is what the is what the organic usage, you know, the organic unusual usage of capital was. And the delta then is just the deployed into usual growth in the business, growth improvement, liabilities, some of that capex that I spoke about, but just the usual ongoing demand of capital for growing the business.

Speaker #2: Okay. Okay. Great. And so going forward, would we expect earnings to track or capital generation to track earnings more closely or would you expect to continue to deploy this?

Speaker #3: Yeah. No. So ordinarily, through I'll say through a cycle, but ordinarily, we'd expect for the year for us to generate about 10% of profit in terms of organic capital net organic capital generation.

Speaker #3: So that's, you know, of the profit, 70% goes to the dividend, 20% goes to growth in the business, and 10% goes to that organic net usage.

Speaker #3: That's what we would expect over a cycle. We've seen that in the last few years. We'd expect to see that in the forward look.

Speaker #3: But in FY26, we didn't see that. And so that's why I say it's not a guaranteed dynamic each and every year. There is variability to it.

Speaker #3: And the variability particularly we saw in FY26 was that prudence around the risk margin that we probably wouldn't ordinarily do in the absence of some of that geopolitical event, the significant decline in the New Zealand dollar we wouldn't ordinarily expect to see those sort of moves.

Speaker #3: And then in FY26, in the first part of the year, we also had that giant hail event, which gave rise to a much larger increase in the premium liabilities and a demand on capital on the claims outstanding claims, sorry, from that event.

Speaker #3: So there were a couple of unusual things in FY26 that we wouldn't necessarily expect to happen over a cycle.

Speaker #1: But you can see it's all manageable within the construct of a 70% payout ratio. If it was 60% payout ratio to be or sorry, 80%, it'd be a bit harder to manage.

Speaker #1: So that's the prudence and that's the conservative position that we've got. And as I say, if things these unusual circumstances weren't to evolve, then we have got that excess accretion from the payout into the capital balance that we can, you know, use for capital management through the course of a cycle.

Speaker #3: And Steve, I'll just add that, you know, we'll see where the geopolitical events get to, etc. But at least two of those things should reverse.

Speaker #3: So, you know, we would expect the New Zealand dollar to improve. Back to where the long run average is. And as we pay out that giant claims hail event, the outstanding claims liabilities come down and the capital on those comes down too.

Speaker #3: So a lot of this stuff is timing. But it can impact in a particular period.

Speaker #1: So just confirming, nothing more on the phones. Nothing more in the room. Thank you very much for your time. We remain very confident in the outlook for the business.

Speaker #1: That's reflected in our outlook statement. We look forward to talking more about the initiatives that we've got in place around platform modernization, operational transformation, AI, the multi-brand strategy, and by the time we get to the investor day, any of the answers that we don't know, the new executives will know in precise detail.

Speaker #1: So it'll be a good opportunity to catch up with each of them in terms of their new portfolios. So thank you and look forward to catching up next couple of weeks.