{"id":64150,"date":"2026-07-02T19:08:18","date_gmt":"2026-07-02T23:08:18","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/suncorp-forecasts-higher-fy27-reinsurance-costs-ceo-steve-johnston-to-return\/64150\/"},"modified":"2026-07-02T19:08:18","modified_gmt":"2026-07-02T23:08:18","slug":"suncorp-forecasts-higher-fy27-reinsurance-costs-ceo-steve-johnston-to-return","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/suncorp-forecasts-higher-fy27-reinsurance-costs-ceo-steve-johnston-to-return\/64150\/","title":{"rendered":"Suncorp Forecasts Higher FY27 Reinsurance Costs; CEO Steve Johnston to Return"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Suncorp Group (<a href=\"\/stock\/SUN\">SUN<\/a>)<\/strong> expects <strong>FY27 reinsurance costs<\/strong> to exceed those of <strong>FY26<\/strong>, despite securing a new five-year aggregate cover designed to limit natural hazard volatility.<\/li>\n<li>The company has capped <strong>FY27 natural hazard costs<\/strong> at <strong>A$1.85 billion<\/strong> for approximately <strong>90% of modeled scenarios<\/strong>, maintaining a <strong>A$350 million event retention<\/strong>.<\/li>\n<li><strong>CEO Steve Johnston<\/strong> is scheduled to return from medical leave on <strong>July 6, 2026<\/strong>, resuming leadership from acting CEO <strong>Jeremy Robson<\/strong>.<\/li>\n<li>For <strong>FY26<\/strong>, Suncorp anticipates <strong>investment income<\/strong> of <strong>A$750 million to A$800 million<\/strong>, while natural hazard costs are projected to finish <strong>A$250 million above allowance<\/strong>.<\/li>\n<\/ul>\n<p>Suncorp Group (<a href=\"\/stock\/SUN\">SUN<\/a>) has provided a strategic update regarding its reinsurance program and executive leadership, signaling a transition toward greater earnings resilience despite rising costs. The insurer confirmed that while <strong>FY27 reinsurance costs<\/strong> are expected to be higher than the current fiscal year, the group has successfully implemented a <strong>five-year aggregate reinsurance arrangement<\/strong> effective June 30, 2026. This new layer provides up to <strong>A$800 million<\/strong> in annual protection and is intended to address the earnings variability that has recently challenged the firm.<\/p>\n<p>The group\u2019s <strong>FY27 catastrophe cover<\/strong> maintains a <strong>A$350 million event retention<\/strong>, with natural hazard costs effectively capped at <strong>A$1.85 billion<\/strong> in roughly <strong>90% of scenarios<\/strong>. This attachment point is set <strong>A$50 million<\/strong> above the expected <strong>FY27 natural hazard allowance<\/strong> of <strong>A$1.80 billion<\/strong> (excluding claims handling expenses). Acting CEO <strong>Jeremy Robson<\/strong> noted that the aggregate cover became a &quot;viable part of the overall program&quot; due to improving market conditions, allowing the firm to add resilience to its capital settings.<\/p>\n<p>In terms of near-term financial performance, Suncorp expects <strong>FY26 investment income<\/strong> to land between <strong>A$750 million and A$800 million<\/strong>. However, the company continues to battle elevated weather-related claims, with <strong>FY26 natural hazard costs<\/strong> forecasted to be <strong>A$250 million above the initial allowance<\/strong>. This follows a challenging first half where costs exceeded allowances by <strong>A$453 million<\/strong> due to nine declared natural hazard events, including destructive hailstorms in Queensland.<\/p>\n<p>Leadership stability is also set to return as <strong>CEO Steve Johnston<\/strong> prepares to resume his duties on <strong>July 6, 2026<\/strong>, following a period of medical leave that began in late March. Upon Johnston&#39;s return, <strong>Jeremy Robson<\/strong> will transition back to his permanent role as <strong>Chief Financial Officer<\/strong>, and acting CFO <strong>Neil Wesley<\/strong> will return to his position as Executive General Manager of Strategy and Investor Relations. The structured return of the permanent executive team comes as the insurer remains focused on its <strong>FY26 Gross Written Premium (GWP) growth<\/strong> target, currently projected at the bottom of the mid-single digit range.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Suncorp Group (SUN) expects FY27 reinsurance costs to exceed those of FY26, despite securing a new five-year aggregate 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