SYDNEY — Suncorp Group’s shares fell early Wednesday after the company’s final dividend came in lower than expected amid reinsurance pressures and a delay in the prospective sale of its banking unit.
The Australian general insurer’s shares fell 3.0% to 13.34 Australian dollars (US$8.73) after earlier hitting a low of A$13.12. It is one of the worst performers on the ASX 200 in today’s session so far.
Suncorp, as part of its fiscal 2023 earnings announcement, declared a final dividend of A$0.27/share, up from A$0.17/share a year earlier, but said the full-year dividend payout ratio of 60% of cash earnings was at the bottom of the target payout ratio range of 60% to 80%.
The company maintained its commitment to a 60%-80% dividend payout ratio but said that the lower payout in fiscal 2023 reflected some significant shifts in capital and its working through the Australian Competition Tribunal process relating to the sale of its bank to ANZ Group.
Citi analysts said the lower-than-expected final dividend missed both Citi and consensus expectations and the fiscal 2024 outlook guidance suggests a difficult first-half.
Suncorp shares are up around 11% so far this year.