-- Suncorp Group (ASX:SUN) has struck a reinsurance cover deal providing it AU$800 million of protection annually and up to AU$2.4 billion in total protection over the agreement's five-year term, according to a Friday filing with the Australian bourse.
The agreement is effective June 30 and includes protection previously provided by Suncorp's existing dropdown arrangements below AU$350 million, per the filing.
The fiscal 2027 attachment point for the aggregate cover is AU$1.85 billion. The company said it expects the aggregate cover to effectively cap natural hazard costs at the attachment point in about 90% of scenarios in any year.
The deal is also expected to reduce volatility in net claims costs, resulting in a one-off capital release of about AU$100 million "through a modestly lower capital target," the company said.
Additionally, Suncorp expects its fiscal 2026 underlying insurance trading ratio to come in toward the upper end of its 10% to 12% guidance range. The company also said it now expects fiscal 2026 gross written premium growth of about 3%.
It previously guided for gross written premium growth "around the bottom of the mid-single digit range," according to an earlier filing.