(Reuters) -Australia’s Suncorp Group on Wednesday posted a sharp jump in full-year cash earnings and said it expects an improvement in margins in the medium term from higher renewal premium rates in its insurance segment.
The country’s second-biggest insurer by market value posted annual cash earnings of A$1.25 billion ($817.38 million), compared with A$673 million a year earlier.
The higher earnings came on the back of improved underlying margins, boosted by higher interest rates, and a significant turnaround in investment returns.
Net gain from yields and investment markets was A$724 million for the year, compared with a loss of A$190 million in 2022, the company said in a statement.
The company declared a fully franked final dividend of 27 Australian cents per share, compared with 17 cents a year earlier.
Last week, the company’s A$4.9 billion banking arm sale to ANZ Group Holdings was blocked by the country’s competition regulator.
Suncorp now expects the separation and other costs related to the deal to increase from A$500 million to between A$575 million and A$600 million.
The Brisbane based insurer said on Wednesday it was changing its operating model with main business now revolving around three core insurance functions: Consumer, Commercial & Personal Injury and New Zealand.
($1 = 1.5295 Australian dollars)
(Reporting by John Biju and Nausheen Thusoo in Bengaluru; Editing by Shilpi Majumdar and Shinjini Ganguli)