Siebel, Thomas M, CEO of C3.ai, sells $7.6m in stock
Investing.com-- Shares of Suncorp Group Ltd (ASX:SUN) jumped to a record high on Wednesday after the insurance provider reported a sharp increase in half-year profit and announced a capital return plan, including a special dividend.
For the six months ended December 31, Suncorp posted a net profit after tax (NPAT) of A$1.1 billion ($690 million), nearly doubling from A$582 million in the prior corresponding period.
The gain included proceeds from the sale of Suncorp Bank, which generated a one-off profit of A$252 million.
Suncorp announced that A$4.1 billion of net proceeds from the sale of Suncorp Bank will be returned to shareholders.
This would equate to A$3.00 per share capital return from the bank sale, with a special dividend of 22 Australian cents per share, to be distributed on March 14 alongside an interim dividend of 41 AU cents per share, the company said.
Suncorp shares jumped 5.5% to A$21.5, their highest level ever.
Cash earnings, excluding the bank sale, rose to A$860 million, driven by an 8.9% increase in gross written premium (GWP) across the insurance business.
Favorable natural hazard experience and strong investment returns also contributed to the earnings growth, the company said in a statement.
Looking ahead, Suncorp expects GWP growth in the mid-to-high single digits and indicated further capital management initiatives, including potential share buybacks.
"Increases in customers’ premiums are now moderating, with home construction and car repair costs showing signs of stabilisation, margins approaching or within our target ranges and reinsurance markets remaining constructive," CEO Steve Johnston said in a statement.