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Australia's Suncorp cuts annual premium growth forecast on contract loss

By Reuters News

Oct 29 (Reuters) - Australian general insurer Suncorp SUN.AX on Thursday lowered its gross written premium, or GWP, growth forecast for fiscal 2027 to about 3% from the 3%-5% range it gave in August due to the loss of a major contract and weakness in the New Zealand dollar.

Here are more details:

  • Suncorp said GWP growth has been impacted by the loss of a single large commercial contract, which is expected to have an impact of A$125 million ($88.26 million) in fiscal 2027

  • "The weaker New Zealand dollar is expected to reduce growth by approximately 70 basis points in Australian dollar terms," the insurer added

  • Suncorp's new forecast of about 3% GWP growth for fiscal 2027 is below the Visible Alpha consensus estimate of 3.6%

  • Suncorp expects the full impact of the commercial contract to be reflected in the first half, resulting in full-year GWP growth being weighted to the second half

  • The company said there is no other change to the fiscal 2027 outlook provided in August, with underlying insurance trading ratio expected to remain in the top half of the 10-12% range


($1 = 1.4162 Australian dollars)

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