SUNCORP GROUP LIMITED

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Building futures and protecting what matters FY24 Annual Report

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Our reporting suite

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Building futures and protecting what matters Learn more
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FY24 Investor Pack suncorpgroup.com.au/investors

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Building futures and protecting what matters Learn more
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Climate-related Disclosure Report
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suncorpgroup.com.au/corporate-responsibility/reports

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Building futures and protecting what matters Learn more
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Sustainability Data Pack

suncorpgroup.com.au/corporate-responsibility/reports

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Building futures and protecting what matters Learn more
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Proxy Voting Report
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suncorpgroup.com.au/corporate-responsibility/reports

reference to the 2021 Global Reporting Initiative (GRI) Standards. For a

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Building futures and protecting what matters Learn more
Tax Transparency Report
suncorpgroup.com.au/corporate-responsibility/reports
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Building futures and protecting what matters Learn more
Modern Slavery Statement
suncorpgroup.com.au/corporate-responsibility/reports
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Building futures and protecting what matters Learn more
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Gender Pay Gap Report suncorpgroup.com.au/corporate-responsibility/reports

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

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Acknowledgement
of Country
Suncorp acknowledges the
Traditional Custodians of the
lands on which we operate and
pay our respects to Elders past,
present and emerging.
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Our brands

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Australia
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New Zealand
Suncorp Bank
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On 31 July 2024, Suncorp Group completed the sale of Suncorp Bank to ANZ Banking Group. Read more on page 10.

	Overview	2
	About this report	2
	Our reporting suite	2
	Performance highlights Message from our Chairman	4 6
	Message from the Group CEO
	and Managing Director	8
	How We Create Value	10
	About Suncorp Group	10
	Our purpose and values	11
	Our strategic priorities	12
	Our fnancial performance	13
	Our approach to sustainability	19
	Our customers and community	21
	Our people	25
	Climate and environment approach	27
	Our approach to risk management	30
	Corporate Governance	32
	Directors’ Report	43
	Lead Auditor’s Independence Declaration	53
	Remuneration Report	54
	Financial Statements	84
	Consolidated statement of
	comprehensive income	85
	Consolidated statement of
	fnancial position	86
	Consolidated statement of
	changes in equity	87
	Consolidated statement of cash fows	88
	Notes to the consolidated fnancial
	statements	89
	Directors’ Declaration	153
	Independent Auditor’s Report to the
	shareholders of Suncorp Group Limited	154
	Shareholder Information	166
	Performance summary	166
	Stock exchange information	166
	Financial calendar and key payment dates	172
	How to contact us	173

FY24 Annual Report 3

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Performance highlights[1]

$1.20bn Group net profit after tax

$1.37bn Group cash earnings[2]

$7.53bn Consumer GWP[3]

$3.95bn Commercial & Personal Injury GWP[4]

NZ$2.86bn $69.93bn New Zealand GWP Bank total lending[5]

4 FY24 Annual Report

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

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People

$1.42bn 16.8% Employee salaries, Gender Pay Gap super and benefits (GPG)[16]

99.6% Code of conduct training completion rate[6]

8.4/10 Employee engagement score[6,7]

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Customers

$9.7bn +7.4 Claims paid Suncorp Group Insurance Net Promoter Score[6,8]

75% Digital sales up from 67%[9]

99.95%

Internal Dispute Resolution (IDR) complaints resolved in 30 days[10,11]

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Community

$360m $1.91bn $10.4m Income tax paid Suppliers and Total community other fees paid investment[12]

76%

Reduction in Scope 1 & 2 GHG emissions from a FY20 baseline[6,13]

35% Total shareholder return[14] Shareholders

78 cps Total ordinary dividend, fully franked

$1.08 Cash earnings per share[15]

$774m

Dividends paid

Additional non-financial metrics, performance against targets and historical data is available in the FY24 Sustainability Data Pack.
Cash earnings refers to net profit after tax adjusted for the amortisation of acquisition intangible assets ($14 million after tax) and the loss on divested and/or divesting of operations ($161 million after tax).
Consumer includes Home and Motor Insurance in Australia.
C&PI includes Commercial and Personal Injury Insurance in Australia.
Gross Lending.
FY24 figure subject to independent limited assurance by KPMG. Please refer to the limited assurance opinion included on the Suncorp Group website.
Employee engagement is measured by Workday Peakon Employee Voice, a product of Workday, an independent company and a separate entity to Suncorp, and is scored out of 10.0. The final reporting period for the financial year spanned from 24 June to 7 July 2024. The engagement platform is live and as at 30 June, the reported engagement result was 8.4. This result was maintained for the remainder of the period.
RFI Global - Atlas. Measured as at June each FY on a 6-month rolling average amongst an aggregate of Suncorp Group Australian consumer insurance customers. Net Promoter Score[SM] is a trademark of Bain & Co Inc., Satmetrix Systems, Inc., and Mr Frederick Reichheld. FY24 is the first year Suncorp is reporting Group Consumer Insurance NPS.
For mass brands, Home and Motor products in Australia.
30 calendar days is the ASIC maximum timeframe for Internal Dispute Resolution (IDR) responses for standard complaints, but different complaint types are subject to different maximum IDR timeframes (see RG 271.58).
Based on Insurance (Australia) customers. Excludes personal injury.
Community Investment covers cash, time, and in-kind contributions made to community causes. Verified by Business for Societal Impact (B4SI) - see verification certificate on ‘B4SI’ tab of Sustainability Data Pack.
Scope 1 and 2 emissions performance is measured from FY20 baseline of 18,707 tC02-e using the Scope 2 market-based greenhouse gas (GHG) accounting methodology from the GHG Protocol Scope 2 Guidance. We track our emissions aligned to the Science-Based Target initiative (SBTi) Corporate Net-Zero Standard.
Total shareholder return represents the return of common stock over the financial year with dividends fully reinvested.
Calculated using basic shares.
GPG for our Australian and New Zealand combined workforce. We look at base salary only and use the mean (average) as the data point.

FY24 Annual Report 5

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Message from the Chairman

Dear Shareholders,

Suncorp Group has reached a critical juncture in its history. Following a two-year process to complete the sale of Suncorp Bank, the Group has emerged as a dedicated Trans-Tasman insurance business, well positioned to invest in our business and deliver greater value for our customers and communities as well as our shareholders.

The increasingly challenging environment in which we operate was a key driver of your Board’s decision to sell Suncorp Bank to ANZ Banking Group and become a pure play insurance company at a time when the value of insurance and the need for continued investment in a vibrant private insurance sector has never been greater.

We remain a proudly Queensland headquartered company with a portfolio of leading insurance brands including AAMI, Suncorp Insurance, GIO, Shannons and Vero. As part of the sale process, we have made meaningful commitments to the State of Queensland to deliver more jobs and investment that will support the continued growth of the state.

In addition to a range of complex external approvals, we have undertaken a significant internal program of work required to separate the Bank given the integration of systems, platforms, processes, data and premises. We are immensely proud that the transaction was delivered with minimal impact to our customers.

The Board continues to expect net proceeds from the sale to be around $4.1 billion. Consistent with the approach taken in previous divestments, it is our intention to return the majority of these net proceeds to shareholders, primarily by way of a capital return and a smaller fully franked special dividend component. We anticipate this will occur around the first quarter of the 2025 calendar year, with timing dependent on receipt of a ruling from the Australian Tax Office and approval from the Australian Prudential Regulation Authority.

Shareholder approval of resolutions giving effect to amendments to the Suncorp Constitution and the return of capital and consolidation of ordinary shares will also be sought at our 2024 Annual General Meeting.

A complex external landscape

Against this backdrop, we have continued to operate in an increasingly complex business and regulatory landscape.

Geopolitical tensions continue to escalate and the challenges of the energy transition, climate change and extreme weather events remain. While the reinsurance market has returned to more stable and predictable outcomes after a significant market reset in 2023, the state of reinsurance markets remains intrinsically linked to material natural hazard event activity, both locally and internationally.

Consumers have continued to be challenged by higher costs of living through high inflation and higher interest rates, driving heightened sensitivity to price and value for goods and services.

Insurers have not been immune, with the rising cost of materials and supply chain constraints leading to insurance premiums rising rapidly. The cost to insure risk has also increased due to the higher frequency of natural hazards.

Your Board remains acutely aware of the pressure households and businesses are under in this environment and is committed to ensuring the ongoing affordability and availability of insurance, which is critical to the health of our economies. While there is no simple solution, reducing or mitigating the underlying risk remains the key to addressing these issues. This is why we continue to advocate with all governments for the need for greater investment in resilience measures to protect people and communities, and reduce the devastating impacts of natural disasters across Australia and New Zealand.

We also acknowledge that driving improved outcomes for our customers is a responsibility for both Suncorp and the broader insurance industry. We continue to pay close attention to the Australian Federal Government’s Inquiry into insurers’ responses to 2022 major flood claims, as well as the focus by regulators on the handling of claims and complaints.

6 FY24 Annual Report

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Your Board remains alert to the rapid technology advancements and cyber threats that continue to grow in sophistication. We understand the sensitivity of information we hold as an insurer and the responsibility we have to our customers to protect their data. Equally, the adoption of generative artificial intelligence is accelerating and proving to be transformational across many industries, including insurance. These technological shifts and the ongoing digitisation of our society are reshaping the way we work and the work we do, and we are making investment decisions with these shifts in mind. This is reflected in Suncorp Group’s FY27 strategic plan, which the Board was pleased to approve this year.

New Zealand Life Sale

As the final piece in the simplification of Suncorp Group, in April we announced the sale of our New Zealand Life Insurance business, Asteron Life Limited, to Resolution Life. The sale, which is expected to complete around the end of January 2025, is subject to approval from the Reserve Bank of New Zealand. Approval from the Overseas Investment Office has been obtained and no objections were raised by the New Zealand Commerce Commission.

Our performance and capital position

Pleasingly, FY24 was another year of good growth and returns. Group net profit after tax (NPAT) was up 11.8% to $1,197 million, while cash earnings increased 16.6% to $1,372 million.

Closing

On behalf of the Board, I would like to thank Group CEO Steve Johnston, his leadership team, and Suncorp’s employees, who have shown their deep commitment and genuine passion in supporting our customers and communities across Australia and New Zealand. This extends to getting customers back on the road, into their homes, and helping support a return to work and quality of life.

I thank you, our valued shareholders, for your continued support of the Suncorp Group, and our strategic direction. While it is a new era for Suncorp as a pureplay insurer, our purpose to build futures and protect what matters for our people, customers and communities remains unchanged. Your Board is confident that Suncorp remains well positioned to deliver the benefits of being a strong, profitable, reliable and trusted insurer for Australia and New Zealand.

Sincerely,

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Christine McLoughlin, AM Chairman 19 August 2024

The result reflected improved underlying margins in the General Insurance business and positive investment returns, with a 46.6% increase in net investment returns to $661 million.

The Board has determined to pay a fully franked final ordinary dividend of 44 cents per share. This brings total fully franked ordinary dividends for FY24 to 78 cents per share. The Group’s full year dividend payout ratio of 72.1% of cash earnings is around the middle of the target payout ratio range of 60% to 80%. Our final FY24 ordinary dividend payment will be made on 25 September 2024.

Appropriate capital buffers have been retained and our disciplined approach to the management of capital will continue with your Board remaining committed to returning capital in excess of the needs of the business to shareholders.

Board renewal

Board renewal is ongoing, with your Board continuing to assess its composition to ensure the appropriate mix of expertise, skills and diversity are maintained. We welcomed Queensland-based Gillian Brown as a non-executive Director in February 2024, following Doug McTaggart’s retirement after 12 years of service. We thank Doug for his significant contribution to Suncorp and are pleased to have Gillian join us, bringing extensive experience working across complex, regulated businesses and strong credentials in managing Environmental, Social and Governance initiatives. Gillian will seek election at the upcoming Annual General Meeting (AGM) in October. I will be seeking re-election at the AGM for one final term. I am committed to being part of Suncorp’s transition to a pureplay Trans-Tasman general insurer.

FY24 Annual Report 7

DIRECTORS' REPORT

OVERVIEW HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Message from the Group CEO and Managing Director

Dear Shareholders,

Suncorp demonstrated the underlying strength and resilience of its business during FY24 to deliver growth and a strong set of results, despite headwinds including higher claims costs due to persistent inflation, and the prolonged bank sale process.

The Group’s net profit after tax of $1,197 million and cash earnings of $1,372 million reflects the continued quality of our business and growth of our portfolios. Net investment returns were again a key contributor to the topline earnings and profit, up significantly from $451 million to $661 million. The result also benefitted from the total cost of natural hazard events for the year of $1,235 million, $125 million below the Group’s allowance for the year.

Gross Written Premium (GWP), which represents the amount of premiums collected, increased by 13.9% across the General Insurance business, reflecting both growth in the number of policies as well as targeted price increases in response to higher costs from reinsurance and natural hazards and claims inflation. Growth in our core Australian home and motor portfolios, up 10% and 16% respectively, was driven by continued improvements in the customer experience and our leading brands, with three out of four customers now purchasing our insurance products digitally.

The Bank achieved modest home lending growth of $2.2 billion while the Bank’s net interest margin (NIM) was 1.82%, down 14 basis points on the prior year, a reflection of the competitive pressures in the industry. I’m pleased the Bank has been handed over in good shape to ANZ, a result of our clear strategy to improve its overall performance and risk maturity over the past four years. Throughout the process, the Bank team maintained its focus, delivering strong direct and broker net promoter scores, improved turnaround times and consistently high employee engagement scores.

Our commitment to our customers

Over the course of FY24, I spent a lot of time visiting customers, employees and government and industry stakeholders across Australia and New Zealand. Most encouragingly, I saw our purpose of building futures and protecting what matters in full swing as I visited areas like Far North Queensland following ex-Tropical Cyclone Jasper, Townsville and surrounds following ex-Tropical Cyclone Kirrily, and parts of South East Queensland impacted by the Christmas and Boxing Day storms. I saw our people rally behind our customers as they had the unfortunate experience of having their lives turned upside down in the aftermath of these events and others – we managed more than 100 000 extreme weather claims across Australia and New Zealand over the year. This is yet another reminder of the valuable role insurance plays in our communities and the positive impacts on our customers when we get it right in their hour of need.

I also spent time this year revisiting several communities impacted by previous extreme weather events, including those devastated by the 2022 major flooding across much of the east coast of Australia. These are communities where a small number of customers remain displaced from their homes and businesses long after the floodwaters have subsided. This is the subject of the ongoing Parliamentary Inquiry into Insurers’ responses to the major flooding events of 2022. While in most cases these are very complex claims, we know we can, and must, do better. We have already adopted many of the learnings of the Inquiry and I’ve seen this firsthand in the events of FY24. You can read more about our response to the Parliamentary Inquiry on page 21.

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Delivering better outcomes for our customers and communities was at the heart of our decision to sell Suncorp Bank to become a dedicated Trans-Tasman insurer, proudly headquartered in Queensland. With the sale having completed on 31 July 2024, our full focus and investment of time, resources and capital is now able to be devoted to growing our insurance portfolios, further digitising and innovating across our business and addressing complex issues such as climate change, building greater resilience to extreme weather and improving insurance affordability and accessibility through action and advocacy.

These are pressing issues to address, and we acknowledge it has been a challenging period for our customers amid ongoing cost of living challenges, including rising insurance premiums. Our ability to support our customers and the wider community before, during and after weather events will also be enhanced through our investment in a disaster response centre of excellence based out of our Brisbane headquarters. This and the establishment of a regional hub in Townsville, Queensland are core parts of our commitments as agreed with the Queensland government through the sale of the Bank.

Investing in our communities

Suncorp was proud to invest more than $10 million to support the social, financial and natural hazard resilience of our communities this year. We were also proud to celebrate 30 years as naming rights sponsor of the iconic Suncorp Stadium, one of the longest venue partnerships in Australia’s history and a reinforcement of our ongoing commitment to Queensland.

This year Suncorp developed our third Reconciliation Action Plan (RAP). Our Innovate RAP 2024 - 2026 outlines our ongoing commitment to build connections, respect and opportunities and a prosperous, resilient society for all Australians. In addition, Suncorp developed its first public-facing Human Rights Statement this year, which outlines our approach to respecting human rights and mitigating the risk of harm to people connected to our business activities and relationships.

Our people

During the year, Suncorp evolved its operating model to create end to end leadership accountability for our insurance businesses and better respond to the emerging needs of our customers and the external environment. The operating model organises Suncorp around three core insurance businesses: Consumer Insurance, Commercial and Personal Injury and New Zealand, to better support our future as a Trans-Tasman insurer.

Employee engagement remained strong throughout the year, with a score of 8.4 out of 10, which continues to be within the top quartile of our peer group. You can read more about the work we’re doing to create an inclusive and supportive environment for our people where they can do their best work and deliver positive customer outcomes every day on pages 25 – 26.

Looking ahead

We are excited about the opportunities that lie ahead for Suncorp as a pureplay insurer. Our strategic plan, approved by the Board this year, will underpin our future as a dedicated insurance business and see us strive towards our ambition to become the leading Trans-Tasman insurer by FY27. The plan will see us continue to build on the strong fundamentals of our business and the momentum achieved over the past four years to grow our consumer, commercial, personal injury and New Zealand portfolios and digitise our business.

Investment will be focused on modernising our platforms and deploying Artificial Intelligence in a measured way across the organisation, aimed at building greater efficiency and effectiveness in the way we do things, improving products and services for our customers and ultimately delivering a sustainable business and greater value for our shareholders.

Our focus on continuing to improve the customer experience will remain core to our success, while we will look to be a leading voice on advocating for measures that improve resilience to natural hazards to protect people, and address insurance affordability and the important issue of climate change.

Finally, I would like to take this opportunity to thank Fiona Thompson, our Group Executive People, Culture and Advocacy, who will be departing Suncorp later this calendar year after more than 23 years of service. Fiona has made a significant contribution to Suncorp over this time, and I wish her well. Belinda Speirs who has held various leadership roles at Suncorp since 2013, including Group General Legal Counsel and most recently as our Group Executive Completion and Transition of the Bank sale, will commence in the newly created role of Chief Executive People, Legal and Corporate Services.

I thank all of our teams for their ongoing dedication and support of our customers, communities and business, and also extend my appreciation to all of our shareholders for your continued confidence in our company.

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Steve Johnston Group Chief Executive Officer and Managing Director 19 August 2024

FY24 Annual Report 9

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

How we create value

About Suncorp Group

Suncorp Group is an ASX-listed Trans–Tasman insurance company, headquartered in Brisbane, Australia. With a heritage dating back more than 100 years, the Group provides insurance products and services through some of Australia and New Zealand’s most recognisable brands. A dedicated team of around 10,500* people live Suncorp’s purpose of building futures and protecting what matters every day to deliver valued outcomes for our customers.

Sale of Suncorp Bank

On 18 July 2022, following a comprehensive strategic review, Suncorp Group announced it had entered into a share sale and purchase agreement to sell Suncorp Bank to Australia and New Zealand Banking Group (ANZ).

Suncorp and ANZ announced the completion of the transaction on 31 July 2024. This followed approvals from the Australian Competition Tribunal on 20 February 2024 and the Federal Treasurer under the Financial Sector (Shareholdings) Act on 28 June 2024. The sale was also subject to the passing of legislation by the Queensland Parliament to amend the Metway Merger Act, which occurred on 14 June 2024. The application of the State Financial Institutions and Metway Merger Act 2024 and its Queensland headquartering requirements shifted from the Bank (Suncorp-Metway Limited) to Suncorp Group as a dedicated insurance business on 31 July 2024.

This forms one part of a package of measures put in place to support our ongoing commitment to our home state of Queensland, including jobs and investment that provide benefits not only for Queensland but across our Australian and New Zealand communities more broadly. Suncorp’s commitments, which are underpinned by rigorous reporting obligations, include:

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Ά for ten years after the commencement of the legislation, ensuring the Ά within 2 years of the commencement of the legislation, increasing the
number of its employees servicing the Suncorp Insurance business located number of Suncorp employees in regional Queensland by 120 people (100
in Queensland is greater than the number of employees servicing that of which are to be employed on a full-time basis). To support this Suncorp
business in any other state or territory in Australia; must invest in leased premises, fit-out and infrastructure (expected to be in
Ά ensuring that the number of Suncorp employees performing Suncorp Group Townsville);
Corporate Service Activities located in Queensland is greater than the Ά contributing at least $3 million within 3 years from the commencement of the
number of employees performing those roles in any other state or territory legislation to community or educational initiatives specified by the State of
in Australia; Queensland, directed at:
Ά developing a Disaster Response Centre of excellence in Brisbane, employing • vocational training for trades to support disaster resilience, as well as
more than 100 people, supported by an investment of at least $12 million in a trades for the construction of housing in Queensland;
market leading Event Control Centre platform; • supporting First Nations employment pathways; and
Ά within 12 months of the commencement of the legislation, creating and filling • research, courses, internships and scholarships relevant to disaster
a further 20 new full-time employment roles to work on the Event Control resilience and emergency management.
Centre platform;
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The Suncorp Group Board remains committed to returning to shareholders proceeds that are in excess of the needs of the business. We currently expect the majority of net proceeds will be returned to shareholders around the first quarter of the 2025 calendar year, with timing dependent on receipt of a ruling from the Australian Tax Office and approval from the Australian Prudential Regulation Authority. Suncorp’s insurance operations did not form part of the transaction.

A dedicated Trans-Tasman Insurer

Following completion of the sale of Suncorp Bank, Suncorp Group is comprised of three insurance portfolios as follows:

Commercial & Personal Consumer Insurance Suncorp New Zealand Injury Insurance Provides a suite of home, contents and motor Supports the Commercial Insurance, Workers’ Delivers go-to-market general and life insurance options to the Australian market Compensation and Compulsory Third Party insurance products through brands such as through its network of brands including AAMI, (CTP) needs of its customers in Australia Vero Insurance, Asteron Life and AA Insurance, Suncorp Insurance, GIO, Apia, CIL, Terri through brands including Vero, GIO, AAMI, AA Money and AA Life Joint Ventures with the Scheer, Shannons and Bingle. Apia and Suncorp Insurance. The business New Zealand Automobile Association. General is structured around four key customer and Life Insurance is also underwritten and segments: Commercial (Tailored Lines), CTP, white-labelled via corporate partners. Workers’ Compensation, and SME and direct customers (Platforms).

New Zealand Life sale

On 4 April 2024, Suncorp Group Limited announced that it had entered into a share sale and purchase agreement with Resolution Life NOHC to sell its New Zealand Life Insurance business, Asteron Life Limited. The sale, which is expected to complete around the end of January 2025, is subject to approval from the Reserve Bank of New Zealand. Approval from the Overseas Investment Office has been obtained and no objections were raised by the New Zealand Commerce Commission.

*This excludes Suncorp Bank employees following the sale of the Bank to ANZ in July 2024.

10 FY24 Annual Report

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Our purpose and values

Purpose-driven, creating long-term value

Suncorp is a purpose-driven business. Building futures and protecting what matters sits at the core of everything we do. Our purpose underpins our culture; the work our people do every day and the role we play in communities across Australia and New Zealand. Our capable, engaged, diverse and innovative workforce brings our purpose to life for our customers and the communities we live and work in. The long-term financial outcomes we achieve and the value we create for our shareholders reflects the sum of us getting all this right.

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Our purpose
Building futures and
protecting what matters
People
Capable, engaged, diverse, innovative
Customers and community
Delivering valued outcomes
Financial outcomes
A sustainable business
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Being @ Suncorp Behaviours

Our culture is underpinned by our Being @ Suncorp behaviours. Living by our behaviours every day enables us to deliver on our purpose and strategy by creating a sustainable business that provides valuable outcomes for our stakeholders.

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Doing the right thing We are committed to always doing the right thing, by conducting ourselves honestly and fairly in all situations.

Caring for others We are genuine, inclusive and we care about our customers, our people and the communities in which we operate.

Being courageous

We strive to be our best, we speak up when it’s needed most and take ownership of our actions.

FY24 Annual Report 11

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Our strategic priorities

This year, Suncorp Group refreshed its strategic plan to reflect our emergence as a dedicated Trans-Tasman insurer. Our Board-approved strategic priorities for FY27 and beyond build on the strong foundations established over the past four years to become a simplified, investible and resilient business, with strengthened digital and data capability and more efficient, growing business portfolios. With our purpose and people at the core, Suncorp’s ambition is to become the leading Trans-Tasman insurer and centres on delivering improved outcomes for our customers, communities and shareholders. Our longer-term vision sees us providing our customers with more personalised insurance coverage that meets their needs and helps them make informed decisions, while also becoming a recognised leader in the claims experience for our customers. The plan is underpinned by key investments in technology, including the modernisation of our platforms and building on our Artificial Intelligence (AI) capabilities to responsibly embed Generative AI, to drive innovation and enable our people to deliver simpler, more valuable outcomes for our customers.

Purpose

Building futures and protecting what matters

Ambition

FY27: To be the leading Trans-Tasman insurer

Portfolios Consumer Commercial & Personal Injury New Zealand Motor Home Commercial Personal Injury Priorities Best in protection Leadership Distribution and prevention in Claims and Innovation Digital-first Advocacy Strategic enablers Platform Modernisation AI-enabled Operational Transformation Developing market leading, innovative and affordable customer Delivering globally recognised processes and customer products with simplified, modern platforms experiences enabled by artificial intelligence, digitisation and automation supported by partnering

Foundations

Diferentiated	Fulfll ESG & community	Aligned risk appetite	Maintain strong	Deliver Bank
brands	commitments	to support strategy	balance sheet	transitional services
		People
	Purpose-led, performance driven, solving complex customer problems

12 FY24 Annual Report

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Our financial performance

Suncorp Group

Our FY24 result demonstrated an increase in earnings driven by improved underlying margins, positive investment returns and natural hazard costs below allowances.

Net Profit After Tax $1,197m

Group Cash Earnings $1,372m

General Insurance GWP

$14,121m

General Insurance GWP by portfolio ($m)

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13.9%
14,121
2,643
12,395
2,231
3,952
3,549
7,526
6,615
FY23 FY24
Suncorp New Zealand
Commercial & Personal Injury Insurance
Consumer Insurance
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Profit after tax from functions ($m)

Suncorp Bank Home Lending $57,012m

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379
424
213
381
Consumer Insurance
Commercial & Personal Injury Insurance
Suncorp New Zealand
Suncorp Bank
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FY24 Annual Report 13

CORPORATE GOVERNANCE DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

Group Financial Performance[1]

Ά Suncorp Group reported FY24 cash earnings of $1,372 million (FY23: $1,177 million) and net profit after tax of $1,197 million (FY23: $1,071 million). The results were reported across the four functions that remained part of the Group during the full financial year: Consumer Insurance, Commercial & Personal Injury Insurance, Suncorp New Zealand and Suncorp Bank.
Ά Higher net investment income contributed $661 million to the Group’s earnings, up from $451 million in FY23, driven by a strong underlying yield on the interest-earning portfolio, and stronger global equity markets.
Ά Gross Written Premium (GWP) growth in the General Insurance business was 13.9%, reflecting both unit growth and targeted price increases in response to higher input costs of reinsurance, natural hazards and claims inflation.
Ά The Group underlying insurance trading ratio (UITR) or margin for 2H24 in the General Insurance business increased to 12.0%, with the full year increasing from 10.6% to 11.1%. The increase in margin was driven by revenue growth, the impact on earnings from price increases, and from efficiency gains in the business.
Ά A final dividend of 44 cents per share (fully franked) brought total ordinary dividends for the year to 78 cents per share, representing a full year payout ratio of 72.1% of cash earnings, around the middle of the target payout ratio range of 60 to 80%. Appropriate capital buffers have been maintained in line with the Group’s disciplined approach to active capital management.
Ά Common Equity Tier 1 (CET1) capital held at Group was $203 million. Suncorp will continue to be disciplined in managing capital and remains committed to returning capital in excess of the needs of the business to shareholders.
Ά Group operating expenses were $2.5 billion, up 8.5%. The increase in operating expenses largely reflected growth related expenditure, inflationary pressures and an increase in Bank costs.
Ά The Group incurred Bank separation costs of $151 million after tax through the year.

Capital

The Group’s capital management strategy is to optimise shareholder value by managing the level, mix and use of capital resources. The Group will continue to be disciplined about actively managing capital and will balance the needs of the business, the economic outlook, regulatory guidance, and returns. The FY24 dividend payout ratio of 72.1% of cash earnings, around the middle of the target payout ratio range of 60% to 80%, reflects the Group’s prudent and disciplined approach to managing capital.

Natural hazards and Reinsurance

Total natural hazard costs to 30 June 2024 were $1,235 million, down from $1,257 million in FY23, and $125 million below the Group’s annual allowance of $1,360 million. The Group managed 12 separate weather events in Australia and one event in New Zealand above the $10 million threshold, as well as cyclone related events covered by the Cyclone Reinsurance Pool (CRP).

The Group has increased its natural hazard allowance for FY25 to $1,560 million, reflecting increased unit growth, continued inflationary pressures across the industry, and increased risk retention following changes to the reinsurance program.

All percentage movements refer to the prior corresponding period unless otherwise stated. From 1 July 2023, the Group has adopted AASB 17, the new accounting standard for insurance contracts. The prior corresponding period has been restated to reflect this application.

14 FY24 Annual Report

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SHAREHOLDER INFORMATION

Profit after tax $424m

GWP $7.53bn

Digital sales[1] 75%

Consumer Insurance

Financial performance

Ά Consumer insurance delivered profit after tax of $424 million, up from $200 million in FY23, driven by revenue growth and improved margins.
Ά GWP rose by 13.8% to $7,526 million, driven by growth across Average Written Premium (AWP) and units in Home and Motor. AWP growth reflected the pricing response to higher input costs of reinsurance, natural hazard costs and working claims inflation, partially offset by tight cost management and the impact of the Cyclone Reinsurance Pool.
Ά Motor delivered growth of 16.2%, reflecting AWP growth of 14.4% and unit growth of 1.8%. Growth was across all brands and supported by investments in marketing activities, coupled with further improvements in digital functionality and product enhancements.
Ά Home achieved growth of 10.3%, reflecting AWP growth of 8.9% and unit growth of 1.4%. Strong new business volumes and stable renewal rates supported the result.
Ά Net incurred claims of $4,953 million increased 14.0% reflecting increased exposure from higher units, unfavourable development of prior year claims and ongoing inflationary pressures.
Ά The total expense ratio improved from 16.9% to 15.4% due to effective cost management, despite inflationary impacts and increased investment in growth related spend.
Ά The Consumer portfolio continued to make significant progress repairing margins, with the underlying insurance services ratio (UISR), increasing from 3.4% to 6.3%.

Gross written premium ($m)

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13.8%
7,526
6,615
4,507
3,879
3,019
2,736
FY23 FY24
Motor
Home
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For mass brands across Home and Motor products.

FY24 Annual Report 15

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HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Profit after tax $381m

GWP $3.95bn

Commercial & Personal Injury Insurance

Financial performance

Ά Commercial & Personal Injury profit after tax of $381 million declined $62 million. The prior year result benefited from the release of the COVID-19 related business interruption provision of $124 million. In addition in FY24, there was a reduction in prior year reserve releases in the CTP portfolios. On an underlying basis, which is adjusted for the impact of the business interruption release and normalises for reserve releases, profit after tax increased 11.0%.
Ά GWP of $3,952 million increased 11.4%, with strong contributions across the portfolio. Growth was particularly robust across the Commercial (Tailored Lines) portfolio which grew 14.9% supported by Fleet and Commercial Property.
Ά Underlying net incurred claims of $2,338 million increased 13.2%, as claims expense increased in line with strong premium growth and a reduction in prior year reserve releases, which fell to $34 million compared to $210 million previously.
Ά Commercial & Personal Injury delivered an UISR of 11.7% which decreased from 12.9% predominately due to reduced reserve release assumptions in the CTP portfolio.

Gross written premium ($m)

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11.4%
3,952
529
3,549
487
1,522
1,325
719
652
1,182
1,085
FY23 FY24
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Platform Business Commercial (Tailored Lines) Workers’ Compensation CTP

16 FY24 Annual Report

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SHAREHOLDER INFORMATION

General Insurance profit after tax NZ$211m

Life Insurance profit after tax NZ$19m

Suncorp New Zealand

Financial performance

Ά Suncorp New Zealand profit after tax was NZ$230 million.
Ά General Insurance profit after tax was NZ$211 million, up from NZ$65 million. The business benefitted from a benign natural hazard claims experience in FY24, with the prior year impacted by significant weather events and additional reinsurance reinstatement premiums following the North Island floods and Cyclone Gabrielle. The business also benefitted from strong top-line growth, a moderation in working claims, and improved investment income.
Ά GWP increased 17.3% to NZ$2,858 million, with Vero Intermediated and AA Insurance brands recording growth of 14.5% and 23.2% respectively. Growth reflected the pricing response to higher input costs and claims inflation, along with solid unit growth, largely in the Consumer portfolios.
Ά Net incurred claims grew 0.2% to NZ$1,228 million. Natural hazard costs were lower relative to the prior year; however, working claims were impacted by unit growth and inflationary pressures that have moderated through the year.

GWP

NZ$2.86bn

Ά The UISR decreased from 14.1% to 11.2%, impacted by increases in reinsurance costs, higher natural hazard allowance, and a lag in premium earn-through following pricing increases to cover higher input costs. The UISR increased to 13.1% in the second half of the financial year as the earn through of pricing increases drove margin improvement.
Ά Life insurance profit after tax of NZ$19 million was down 26.9%, with an increase in planned profit margins offset by project costs associated with the transition to a new accounting standard, and unfavourable experience, largely in the second half. Annual in-force premium of NZ$336 million grew 5.3%.

Gross written premium (NZ$m)

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17.3%
2,858
39
2,437
38
1,026
949
736
610
1,057
840
FY23 FY24
Other
Commercial
Motor
Home
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FY24 Annual Report 17

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Profit after tax $379m

Total lending $69.93bn

Suncorp Bank

Financial performance

Ά Suncorp Bank profit after tax decreased 19.4% to $379 million, impacted by competitive pressures on margin and increased operating expenses.
Ά Net interest margin (NIM) decreased 14 basis points to 1.82%, driven by a shift in deposit mix towards higher yielding savings products and persistent competition in lending.
Ά The Bank grew the Home lending portfolio by $2.2 billion or 4.0%. Business lending grew 3.3% to $12.9 billion with growth across all portfolios.
Ά Home lending 90+ past due loans increased from 0.51% to 0.70% of the portfolio, although this remained below long-term trends demonstrating a high-quality lending portfolio.

Home lending ($m)

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4.0%
57,012
54,801
FY23 FY24
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18 FY24 Annual Report

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SHAREHOLDER INFORMATION

Our approach to sustainability

Suncorp is committed to building a resilient and sustainable organisation that values positive stakeholder outcomes. We proactively manage the material environmental, social and governance (ESG) risks and opportunities identified by Suncorp in consultation with our key stakeholders. As we fulfill our purpose and deliver on our strategic priorities, we aim to create long-term value for our people, customers, communities and shareholders.

Engaging our stakeholders

Suncorp collaborates with a broad range of stakeholders to identify and manage business risks and opportunities, advocate for positive outcomes, and ultimately create long-term value. Stakeholder engagement is highly valued by Suncorp as it builds trust and confidence, helps us make informed and balanced decisions, and determines our approach to addressing the topics most material to us and our stakeholders.

We use ongoing formal and informal engagement methods based on principles that ensure we are proactive, respectful, and transparent, upholding the highest ethical standards. Our approach evolves in line with our strategy and emerging trends and issues that may impact our business and the community. We identify key stakeholders – including our customers and communities, our people, government bodies, industry associations, regulators, investors and suppliers – based on their level of interest and impact on our business, as well as the opportunity to collaborate for positive outcomes.

Materiality

Suncorp undertakes regular materiality assessments to identify the topics of most significance for our stakeholders and our business. This helps us to manage risks and opportunities and create value for our stakeholders, now and in the future. This year, an independent review of our most material ESG topics was completed considering emerging trends and key changes in our operating environment over the past year.

Our approach

The process for reviewing our material topics included the following:

Ά analysis of media and selected peer and industry reports across Australia and New Zealand
Ά an employee survey to gain insight on what matters most to our people
Ά engagement with key Suncorp leadership teams to discuss topic movements and emerging themes
Ά review and assessment of material changes, key drivers and trends.

Key outcomes

Accessibility and affordability of financial services, natural hazard resilience, and climate change response remain the topics of most importance to Suncorp and our stakeholders. This reflects continued cost of living pressures, sustained focus on net-zero transitionplanning, and event response following natural disasters. In addition, the review identified:

Ά sustained focus on trust and transparency and delivering a positive customer experience, following recent emphasis on the management and processing of insurance claims across the industry.

New themes that are emerging as important to Suncorp and its stakeholders include:

Ά Wide-spread use of Generative AI and the governance models required for responsible and ethical use.
Ά Increasing focus on psychosocial safety as a key theme in the management of workforce wellbeing.
Ά Government intervention and regulation, particularly in the context of accessibility and affordability of insurance products, and the regulation and scrutiny of sustainability disclosures.
Ά Growing consideration by government and industry of naturebased solutions to improve natural hazard resilience and reduce disaster risk. Examples include restoring wetlands to protect communities from floods, protecting or restoring coastal habitats to reduce tidal flooding, and using cultural burning practices to manage the landscape and reduce fire risk.

These outcomes continue to inform Suncorp’s sustainability program of work and our approach to external reporting. Insights are also shared with strategy and risk teams for consideration in business planning and risk management activity.

Sustainable Development Goals

Suncorp remains committed to driving action in support of the United Nations Sustainable Development Goals (SDGs). Learn more about our contribution to the SDGs and alignment to our material topics on the website.

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Learn more

Guiding commitments and frameworks

Suncorp is a signatory or member of a number of programs, which guide our internal practices and help shape our overall approach to sustainability. We take part in a range of external assessments and benchmarking initiatives to help improve our performance and enhance transparency.

Ά the increasing importance of leading technological advancement and agility and innovation, driven by the rapid pace of technology development and growing use of artificial intelligence (AI) in business operations
Ά a heightened need for community advocacy and investment in response to the growing risk of under/no insurance, particularly in vulnerable communities

Learn more

FY24 Annual Report 19

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Our most material topics

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Read more
Topic description on our response
Accessibility and affordability
Ensuring all customers can access affordable financial services that meet their needs. See pages 21 to 24
Climate change response
Proactively adapting to and managing the physical and transitional risks and opportunities of climate change See our
for Suncorp’s business. Climate-related
Disclosure Report
Natural hazard resilience
Helping customers and communities build resilience to natural hazards including floods, cyclones, storms,
earthquakes and bushfires. See pages 21 to 23
Customer experience
Developing agile, innovative and accessible solutions and products for customers. Enabling a personalised and
seamless end-to-end user experience supported by customer engagement. See pages 21 to 24
Trust and transparency
Promoting a culture of trust and integrity through robust and transparent governance and disclosure processes. See pages 21 to 31
Data privacy and security
Rapidly adapting to and mitigating evolving data privacy and security threats to protect Suncorp
and its customers. See pages 23 to 24
Workforce planning and retention
Responding to changing market conditions, technological disruption and demographic shifts impacting
the workforce. Embracing new opportunities to attract and retain high-calibre talent with a range of skills,
experience and creativity. See pages 25 to 26
Purposeful and responsible business
Promoting and integrating Suncorp’s purpose into the way it does business. Embedding environmental, social
and governance considerations into decision making, including investment, underwriting and lending practices. See pages 10 to 31
Workforce wellbeing
Protecting and promoting the wellbeing, health and safety of all Suncorp employees, including contractors. See pages 25 to 26
Sustainable supply chain
Championing sustainable supply chains through responsible procurement and working with business partners
to minimise negative social, health, safety and environmental impacts. Mapping risks and opportunities that
provide resilience against economic, social and environmental supply chain disruptions. See pages 19 to 27
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20 FY24 Annual Report

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FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Our customers and communities

At the heart of building futures and protecting what matters is a focus on delivering positive customer experiences, and identifying where we can improve each part of our customers’ journey with us. Also core to Suncorp is strengthening the resilience and preparedness of our customers and communities and being there in times of need.

This year, the Australian House of Representatives Standing Committee on Economics held an inquiry into insurers’ responses to the 2022 major floods claims. Group CEO Steve Johnston and CEO of Suncorp Group’s Consumer Insurance business Lisa Harrison appeared before the Committee to discuss Suncorp’s response, learnings and commitments to natural hazard resilience. The Committee is expected to hand its report to the Australian Government in October 2024.

Strengthening our supply chain

Suncorp maintains strong working relationships with our supply chain at both an individual claim level and a performance management perspective. HomeRepair provide guaranteed and exclusive management of around 20,000 repair claims and around 2,000 emergency Home Assist call outs every year. This enables HomeRepair to hold strong working relationships with around 300 trades on the east coast. A new scoping tool has enabled more accurate scope of work through the assessment process and ensures the customer and the trades/suppliers are aligned, minimising complications and disputes. To address motor supply chain challenges, Suncorp has continued to work with our repair partners to improve productivity and reduce time off the road.

We’ve introduced additional repair partners with national coverage to support areas with capacity constraints and high demand.

Getting customers back on their feet

Improving the customer experience

Suncorp is committed to acting on feedback and insights from our customers to enhance their experience and address areas for improvement. We acknowledge an increase in complaints volumes and challenging customer satisfaction trends during the year, and have established a significant program to improve the customer claims experience and strengthen alignment to regulator and community expectations.

Suncorp has continued to improve its claims and complaints handling functions in light of ASIC Report 768, industry reviews conducted by the Insurance Council of Australia, the Code Governance Committee and evidence provided during the Australian Government’s Parliamentary Flood Inquiry. Suncorp has optimised its program of work to support effective delivery and oversight of these improvement initiatives.

Activities to uplift the customer experience include:

Ά conducting an end-to-end review of customer correspondence, claims processes and core obligations to identify customer pain points and address feedback from the industry reports
Ά a focus on workforce models and resourcing to support faster fulfilment
Ά redesigned visual guides to help our customers better understand their cover, exclusions and obligations
Ά implementing a capability program to support our customer-facing teams with a model to deliver consistently great customer experiences
Ά ongoing development and delivery of Vicarious Trauma Training to support our claims handling team members.

Award-winning commercial claims service

Our Vero brand was awarded the Gold Mansfield Award for Commercial Insurance Claims Excellence, marking our fifth consecutive win. This prestigious award is a testament to the hard work and dedication of our team, who continually strive to deliver exceptional claims service.

Through early intervention strategies, industry innovation and award-winning training programs for our claims managers, we have continued to support injured workers to get back to work faster. We are collaborating with industry experts to develop a National Australian Standard for Workplace Injury Management Systems, to provide practical guidance to employers, especially micro and small-medium businesses, on developing effective workplace injury management systems.

Ongoing commitment to natural hazard resilience advocacy

Suncorp continued to proactively engage with government and industry in alignment with our four-point plan to improve resilience and mitigation. Highlights included:

Ά Suncorp Group and Natural Hazards Research Australia hosted a public policy roundtable and released a discussion paper to drive a national conversation about assisted relocations, giving communities at high-risk of being repeatedly impacted by extreme weather the opportunity to be relocated out of harm’s way
Ά representation at the National Emergency Management Agency’s (NEMA) Hazard Insurance Partnership to discuss natural hazard resilience related priorities, including developing a shared understanding of priority natural perils risks and opportunities for risk mitigation including through the Disaster Ready Fund
Ά ongoing engagement with resilience agencies including NEMA, Queensland Reconstruction Authority, the NSW Reconstruction Authority, and all levels of government, on priority natural perils risks and Suncorp’s technology-enabled disaster response capabilities
Ά following sustained advocacy on tax reform on insurance bills to benefit customers, we welcomed the NSW Government’s decision to reform the Emergency Services Levy.

In commercial claims, an increased use of automation has allowed our claims advisors to provide faster settlements and spend more time on complex claims decisions.

FY24 Annual Report 21

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Supporting customers and communities through natural hazard events

13 declared weather events

communities supported virtually through proactive welfare calls

Supporting customers to increase household resilience

The Group is continuously exploring and developing ways to deliver more affordable and improved products and services for our customers.

Build it Back Better (BiBB) is an additional benefit available to eligible Suncorp branded home insurance customers. This benefit is designed to cover costs associated with the purchase and installation of building enhancements that reduce the risk of damage during future weather events, for example replacing carpet with tiles, installing solid hardwood doors, and raising external services around the home (such as air conditioning units).

Our online Resilience Hub provides information and videos on building for resilience, and this year saw the launch of My Home, a Suncorp Insurance app feature designed to educate homeowners on maintenance habits to build everyday home resilience and better protect and prepare for all types of events. Almost 65% of the app users completed tasks to better prepare and protect their home.

Suncorp was one of two insurers to announce that it would reflect Bushfire Resilience Ratings developed by the Resilient Building Council in insurance premiums, providing a premium discount to customers who obtain a certified rating of 3 or more.

21

communities supported face-to-face through on-the-ground deployment

453,973 proactive SMS

695 customers supported through proactive welfare calls

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1,006 customers supported on-the-ground

Contributing our Trans-Tasman experience to protect homes, businesses and communities in New Zealand

Following the devastating impacts of Cyclone Gabrielle and the Auckland floods in New Zealand in January 2023, Suncorp Group has played a leading role in contributing our experience-led insights to discussions on climate risk, resilience and adaptation. Suncorp New Zealand CEO Jimmy Higgins has participated in the insurance subcommittee of the Cyclone Recovery Taskforce and the New Zealand Government’s Independent Reference Group on climate adaptation.

Suncorp has provided submissions to government-led inquiries and continues to contribute to the development of fit for purpose regulation for the insurance industry, including through its memberships to the Insurance Council of NZ and Financial Services Council. Our insights and collaboration are contributing to a coordinated, long-term plan for New Zealanders.

22 FY24 Annual Report

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FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Strengthening our natural hazard preparedness and response

Throughout the year Suncorp Group supported customers in the response and recovery of 12 separate weather events in Australia and one event in New Zealand, as well as cyclone related events covered by the Cyclone Reinsurance Pool (CRP). These included bushfires in New South Wales, the impacts of Tropical Cyclone Jasper in Far North Queensland, severe storms along the East Coast of Australia and Cyclone Kirrily which affected the Australian east coast and Northern Territory.

We expanded our preparation, technology use and communication for major natural hazard events as part of our disaster management strategy in a number of ways:

Ά Continuing to improve the technology in the Suncorp Control Centre including refining AI models and enhancing the capability to respond to bushfire, cyclones and earthquakes.
Ά Introducing integrated seasonal outlooks which now include Suncorp’s risks and strategies within identified elevated natural hazard threat areas.
Ά Collaborating with climate scientists within both Suncorp and the Early Warning Network to inform our FY24 simulation scenario.
Ά Expanding our customer communications and education brochures to help customers through all parts of the claim journey, across more brands. This included a children’s activity book, which aims to educate the next generation in the importance of resilience.
Ά Sending new SMS messages to help our customers prepare for weather events and advise customers of recovery centre details.
Ά Enhancing technology to enable a more targeted proactive welfare calls, ensuring we contact our customers first that are most in need.

Education and information sharing for community preparedness

Suncorp continued to unite with its partners to educate communities on the value of preparing and increasing resilience.

Suncorp hosted its SES partners and Get Ready Queensland for a discussion on disaster management and community preparedness. Leaders from the Queensland, New South Wales and Victorian State Emergency Services, along with Queensland Police and the Queensland Reconstruction Authority, joined Suncorp’s insurance leaders for a wide-ranging discussion that addressed topics from disaster technology to disaster readiness and communications.

Members of our Customer Support Teams (CST) embarked on a community engagement tour across Queensland, New South Wales and Victoria in collaboration with our SES community partners in those states. CST members attended regional shows and events alongside the SES to engage with local communities on preparedness and resilience measures.

In Queensland, Suncorp continued to partner with the Queensland Reconstruction Authority on the Get Ready Queensland program – a year-round, all-hazards, resilience building initiative to help communities prepare for natural disasters.

Financial assistance to strengthen communities

Suncorp partnered with the Foundation for Rural and Regional Renewal (FRRR) to offer $300,000 in grants to local not-for-profit organisations in Queensland communities affected by Tropical Cyclones Jasper and Kirrily.

The Group provided financial assistance immediately following exTropical Cyclone Jasper, contributing $100,000 to the Queensland Premier’s Flood Appeal to help Far North Queenslanders recover.

Our people across Australia and New Zealand once again got behind Spirit to Cure, Suncorp’s cancer fundraising challenge. Teams cycled, walked and ran their way to support new cancer treatments, boost diagnosis rates and support those living with cancer and their families, with over $1.77 million donated to cancer charities.

We introduced our refreshed workplace giving program to empower employees to make a difference and choose how they give back. Through ‘Collective Giving’ employees can donate time, money or skills to the organisations that have meaning to them. Suncorp matches donations (up to $1,000 per financial year for eligible employees) and offers one day of volunteer leave.

Protecting customers experiencing vulnerability

The Group Office of the Customer Advocate (OCA) works with experts and people with lived experience to advise on designing and distributing financial products and services. The Group also participates in the Insurance Council of Australia (ICA) Customer Inclusion Working Group.

Throughout the year Suncorp Group made a number of enhancements to protect customers from financial abuse and the weaponisation of financial products. These enhancements included:

Ά Implementing a system improvement to ensure customers who have an indicator of family and domestic violence or elder abuse are referred to a specialised customer care team when they contact Suncorp.
Ά Introducing clear expectations on best practice (called Customer by Design) for developing products, processes, services and systems to understand downstream impacts and minimise unintended consequences for our customers.
Ά Working with Uniting Local Area Coordination (LAC), an NDIS support service, to develop a suite of ‘Accessibility Awareness and Understanding’ training which was completed by our customer-facing Insurance team members. This supports our teams to understand accessibility, disability and inclusion and give them confidence and tools to support customers in an inclusive way.
Ά Suncorp Group was among the first Australian businesses pledging to promote respect and to protect against financial abuse.

FY24 Annual Report 23

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Digital highlights

53% of consumer insurance customer interactions were digital; up from 47% 3 out of 4

customers purchased our insurance digitally

==> picture [45 x 37] intentionally omitted <==

Through automation we streamlined 30 million transactions, saving 940,000 hours

Data privacy and cyber security

Strengthening our approach to protecting our customers’ data remains a priority, including identifying and preparing for potential threats to our business.

Suncorp Group’s Security Strategy and Security Policy Framework are based on regulatory obligations and industry frameworks, and our security priorities are regularly reviewed in consideration of the evolving threat landscape, learnings from external breaches and consulting with global experts.

Suncorp has increased the focus on maturing our resilience and recovery capabilities to reduce the potential impact of a significant cyber event. In addition to investment in technology and capabilities, we run regular simulations involving the Board and senior business leaders. These scenarios provide an understanding of where to continue strengthening our capability and support our preparation for the new Operational Risk Management industry standard Australian Prudential Regulation Authority (APRA) CPS230. We have continued to invest in maturing our capability in alignment with our cyber strategy and our security program of work has continued to uplift capability across key areas.

This year, the Group launched our new and improved cloud-based data ecosystem to strengthen the safety and security of our data services now and into the future. The Group also successfully completed the separation of Bank and Insurance customer data. The outcome of this work provides our customers a simpler, safer and more streamlined experience and also prepares our systems for the transition of Suncorp Bank to ANZ.

Solving customer problems through innovation

AAMI app visits increased 190%, averaging 125,000 customer visits weekly

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APIA brand digital growth was 42%; more than 25% of APIA customers purchased their insurance digitally

==> picture [41 x 40] intentionally omitted <==

Insurance customers held 2.4 million ‘natural language’ conversations through 14 conversational AI chatbots; a 30% uplift on FY23

Our Innovation Studio is helping to innovate products, services and experiences for customers by taking a ‘test and learn’ approach to developing prototypes to address customer challenges in a quicker way. A Commercial AI project in our SME segment was designed to help customers more easily find the right insurance cover. A second use case involved working with our Data Science team to help customers better understand their Product Disclosure Statement.

A commitment to road safety

Together with the Australian Road Safety Foundation (ARSF) we support extensive research and impactful campaigns aimed at promoting awareness and behaviour change among all road users. We collaborated on initiatives including Fatality Free Friday, Rural Road Safety Month, Christmas Road Safety, and Slow Down Songs, reinforcing our dedication to advancing road safety across the country.

AAMI Driver Rewards has continued to provide customers with trip insights to help them improve their driving behaviours. More than 270 million kilometres of trip data was analysed and communicated back to participants. By spotting trends and sharing insights to improve, 39% of drivers observed a gradual improvement in their safe driving score. 52% of drivers who started with a score below 85 observed an improvement.

Customers embracing digital-first transactions

Throughout the year, the Group maintained a focus on meeting customers at their channel of choice through digitisation. Digital growth allows our customer teams to focus on more complex queries and save customers’ time. 4.7 million service transactions were completed digitally, the 4th consecutive year of double-digit year-on-year growth in digital service uptake. For brokers, we continued to improve connectivity including through the implementation of our commercial motor product on a key strategic broker platform.

24 FY24 Annual Report

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FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Our people

The way we work is transforming faster than ever. Suncorp Group is committed to creating an environment where our people feel supported to make their difference, and preparing our people for the jobs of the future.

Workforce wellbeing

Our workforce wellbeing actions and commitments reflect contemporary social challenges, and provide practical tools and support for our people to thrive.

Suncorp Group’s health and wellbeing measure taken from our employee feedback survey consistently sits at a score of 8.7 out of 10, 0.7 above the financial services benchmark.

Fostering wellbeing and psychological health and safety

Suncorp Group’s partnership with the Black Dog Institute (BDI) continues to help us develop our leaders to better support mental health at work, and acknowledges the critical role supportive leadership has in fostering wellbeing. Through this learning, participants build awareness of mental health issues and gain confidence and skills to support mentally thriving teams.

Almost 300 leaders received the workplace mental health training, taking the leadership cohort who have completed ‘Managing for team wellbeing’ to more than 600. Leaders have ongoing access to a dedicated group to continue to provide support, share knowledge and help embed the learning.

Access to mental health modules was expanded to all employees, to increase the reach of the BDI’s resources and build awareness of common mental health issues and strategies for our people to take care of themselves and each other.

Financial coaching a sought-after EAP service

Suncorp’s Employee Assistance Program (EAP) is a safe and confidential service for our people to receive expert support and guidance on a range of work, health, family, and life areas. Over the past 12 months, our financial coaching and supporting financial literacy resources have been among our most utilised services with over 200 sessions conducted with employees.

Protecting our people

Protecting our people from injuries, external threats, violence and customer aggression remains a priority for Suncorp Group. By preparing for emergencies, we empower our people to take decisive and effective action when critical situations arise. New emergency awareness training was released to all employees and our warden network expanded, providing specialist warden training for more than 400 business leaders.

Respect at work

This year, Suncorp refreshed our commitment to Respect at Work through a Board-endorsed prevention and response plan. The plan will step the Group towards leading practice in promoting a safe, inclusive and respectful workplace and focuses on deepening senior leaders’ understanding of the factors that contribute to sexual harassment and accelerating the pace of change through bystander action.

Creating the conditions to thrive

Our people are at their best when we make space for them to be their best selves at work. By fostering an environment of psychological health and safety, we enable our people to drive innovation, helping us better serve the needs of our community and customers.

Deepening our First Nations Reconciliation Awareness

Across the Group, we continued to offer highly popular online workshops facilitated by First Nations spokesperson John Briggs. These discussion-based, open forums were designed to educate on reconciliation and First Nations’ histories and cultures, and contribute to an inclusive workplace that respects and values different ways of working.

Strengthening cultural inclusion

A Māori Cultural Advisor | Kaiwhakahaere Māori role was appointed to assist with development and delivery of a strategy/plan/rautaki to weave te ao Māori (Māori worldview) into the Suncorp Aotearoa way of life and business plans.

Ensuring te ao Māori is integral to the way we operate, building knowledge and capability in our people to confidently apply a Māori lens to their work, resulting in better outcomes for our Māori employees and customers, and contributing to an inclusive workplace that respects and values different ways of working.

Recognition for LGBTQ+ inclusion

Suncorp Group was awarded Silver Tier Recognition under the Australian Workplace Equality Index (AWEI), acknowledging our strong commitment to providing an equitable and supportive environment for LGBTQ+ employees.

AWEI is considered the definitive national benchmark on LGBTQ+ workplace inclusion in Australia and drives best practice across all sectors.

Attracting the best talent

Suncorp Group is driving employment opportunities for First Nations Australians, and Māori and Pasifika peoples in Aotearoa (New Zealand), starting with action at the student level.

Our partnerships with two leading education not-for-profit organisations, TupuToa in New Zealand and Career Trackers in Australia, broadens our access to talented students and future leaders, and increases their visibility of and accessibility to the corporate world.

Four First Nations ‘Career Tracker’ interns participated in Suncorp Group’s 2024 intern cohort. The Group’s internship program was recognised with a Top 20 position on the list of the Top Internship Programs in Australia.

FY24 Annual Report 25

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Employee Resource Groups shaping understanding and inclusivity

Suncorp Group’s Employee Resource Groups (ERGs) continue to play an important role in creating a more inclusive and innovative organisation. These voluntary, employee-led groups represent the voices of our diverse workforce. This year, the lived experience shared by our ERGs has directly resulted in:

Ά an enhanced range of accessible IT equipment, supported by a streamlined request process, to ensure employees with disability can work comfortably, safely, and productively
Ά the launch of three neurodiversity learning modules (developed by our Infinite Minds ERG) to bridge the gaps in understanding of neurodiversity in the workplace by dispelling myths and articulating neurodiverse strengths to drive innovation and elevate team performance.

Gender Pay Gap (GPG) reporting

This year was the first time GPGs were publicly reported by the Workplace Gender Equality Agency (WGEA) for more than 7,000 organisations across Australia. Suncorp is proud of the work and focus we have dedicated to reducing our GPG and have published our first Gender Pay Gap Report. Our GPG for our combined Australian and New Zealand workforce at the end of FY24 was 16.8%, and while we have made progress, we acknowledge there is more to be done. By participating in WGEA reporting[1] , we contribute to a movement towards improving gender equality across the financial and insurance sector.

WGEA looks at both base salary and total remuneration and uses the median as the data point. At Suncorp, we look at base salary only and use the mean (average) as the data point.

Respecting Human Rights

This year Suncorp developed our first public-facing Human Rights Statement. The Statement outlines our approach to respecting human rights and mitigating the risk of harm to people connected to our business activities and relationships. This includes identifying and managing human rights issues and addressing any adverse human rights impacts that we may cause or contribute to.

In managing our impacts, we consider our role as an employer, a provider of financial products and services, an investor, and a procurer of goods and services. To embed our commitment, we aim to incorporate human rights considerations into existing policies, standards, and codes of practice.

We seek to continuously improve our Statement in line with the United Nations Guiding Principles on Business and Human Rights and will review it at least every two years.

Suncorp remains committed to protecting against modern slavery in Australia and globally. Through our Modern Slavery Statement, we report on how we identify and address the risk of modern slavery in our operations and supply chain.

Empowering people to work together

Technological changes are reshaping the traditional workforce. The way we approach learning, development and collaboration is changing to meet the challenge of our evolving workplaces.

Building capability for the changing world of work

Reskill is a bespoke program supporting our people to retrain and acquire new skills in areas such as data analytics, artificial intelligence, and business process modelling.

Delivered in partnership with the University of NSW, program graduates receive an accredited certification that can be used towards other university level courses in the future. The program is now into its fourth intake and 65% of graduates have secured a new role opportunity within Suncorp Group, alongside their accreditation certification.

Building AI fluency, knowledge and collaboration

Suncorp’s people have embraced opportunities to build an understanding of artificial intelligence, including responsible use and governance.

Our AI+U program engaged our people in the Group’s AI journey providing knowledge, empowerment, conversation, and collaboration. Employees have enjoyed the opportunity to experiment safely with productivity tools like Microsoft Copilot, and put AI to the test to solve real customer problems through “Hackathons”, AI conferences and training programs.

Almost 2,000 of our people signed up for our AI+U virtual conference, which showcased the ways we are already using GenAI to solve customer-centred problems, and provide a skills uplift. It featured sessions with companies like Google, Microsoft, Amazon and CSIRO. In addition, more than 420 employees participated in the AI+U Hackathon, which created opportunities to ideate and develop GenAI ideas in our internal testing environment.

More than 160 of our leaders and decision makers participated in a learning program delivered in partnership with University of Sydney. The course covered how AI functions, its relationship with data, opportunities and risks, and considerations for developing AI strategy within Suncorp. Participants engaged with experts, industry leaders, and completed a fluency project related to Suncorp.

Suncorp Group’s Innovation Academy delivers customer-centred problem solving

Our seven-week Innovation Academy program is designed to train our people in innovation process and practice. Almost 500 of our people participated in project-based learning where participants chose a customer problem to solve, including testing with customers, and pitching their ideas back to leaders.

26 FY24 Annual Report

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Climate and environment approach

In our Climate-related Disclosure Report 2023-24, we have considered alignment with the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) framework’s recommendations across the four themes of governance, strategy, risk management and metrics and targets.

Governance

Suncorp Group and Suncorp New Zealand Boards and executives are responsible for the governance of climate-related risks and opportunities.

Our Board skills matrix can be found within our Corporate Governance Statement on page 36.

For governance on climate-related financial risks and opportunities please reference page 5 of our Climate-related Disclosure Report.

Strategy

Our approach to identifying climate related risks and opportunities such as mitigation and resilience is outlined in the Group’s Climate Change Action Plan, with progress updates provided in our annual Climate-related Financial Disclosures.

Learn more

The four key pillars of our Climate Change Action Plan

Reducing our climate impact Supporting the net-zero Partnering with purpose Integrating and lifting through mitigating the direct transition by reducing through collaboration with capability to assess and impact of our operations. This our Scope 3 financed government, industry bodies uplift our own understanding includes Scope 1 & 2 emissions and insurance-associated and climate experts to advocate of climate-related risks and associated with vehicle fleet and emissions related to our for customer and community opportunities, manage and electricity consumption, and underwriting and investment resilience, climate change integrate climate into risk Scope 3 emissions associated activities for the Group. mitigation and adaptation. frameworks, and embed with our supply chain. climate considerations across the business.

Risk management

Suncorp’s Enterprise Risk Management Framework recognises climate change as a strategic risk impacting the Group’s operating environment as well as physical, transition and liability risk impacting the Group’s business plan.

Metrics and targets

Suncorp measures and tracks Scope 1 & 2 greenhouse gas absolute emissions against our net-zero target along with tracking the performance of our investment portfolio relative to benchmarks.

The basis of preparation for climate-related metrics, as well as our performance against climate targets and commitments are located within the reporting supplement, the environment, and value chain sections of our Sustainability Data Pack.

Learn more

FY24 Annual Report 27

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Our performance

Suncorp assesses performance to a range of non-financial targets, providing a holistic view of outcomes across key stakeholder groups.

Stakeholder	Metric	FY24 Target
	Suncorp Group Insurance	Improve year-on-year
	Net Promoter Score1	(FY23: +7.4)
Customer	Suncorp Bank MFI Net Promoter Score3	Improve year-on-year (FY23: +11.6)
	Total workforce diversity	40% women
	Women in senior leadership	49%
	Women on the Board	40%
	Gender pay gap	5 percentage point reduction6from FY21 to FY25
People	Mature age employees (55 years and above)	13%
	First Nations employees (Australia)7	Minimum: 1.7%
	Indigenous employees (New Zealand)8	Minimum: 3.5%
	Employee engagement score9	Maintain score in global top quartile in fnancial services sector10
	Code of Conduct training completion rate	98%
	Cultural diversity11	Continue to monitor against FY23 baseline
Environment	Scope 1 & 2 greenhouse gas (GHG) emissions12	Net-zero emissions by 2030
	Payments to small business suppliers within 30 days14	95% by FY25
	Procurement spend with Indigenous suppliers15	$5m cumulative spend from FY25-FY27
Value Chain13	Diverse supplier engagement	Implement next phase of Responsible Supply Chain Strategy
	Funds invested in social and low carbon impact investments16	5% of total shareholders’ funds

28 FY24 Annual Report

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SHAREHOLDER INFORMATION

==> picture [286 x 578] intentionally omitted <==

----- Start of picture text -----

FY24
Performance FY25 Targets
+7.4 [2]
Removed due to sale
+16.1 [2]
of Suncorp Bank
60.6% women
39.4% men
<1% any [2,5]
49.1% [2] 50%
40.0% [2]
3.7pp [2]
(GPG: 16.8%)
14.2% [2]
2.0% [2]
4.1% [2]
8.4 [2]
99.6% [2]
Monitor
representation
Completed
rates through the
employee lifecycle
76% reduction [2]
96.6% [2]
Not applicable New target
Completed Completed in FY24
6.5% [2]
----- End of picture text -----

Read more on our full suite of non-financial metrics in the FY24 Sustainability Data Pack.

Read more Target achieved Target not-achieved Target on track Target retained Target increased New target

RFI Global - Atlas. Measured as at June each FY on a 6-month rolling average amongst an aggregate of Suncorp Group Australian consumer insurance customers. Net Promoter Score[SM] is a trademark of Bain & Co Inc., Satmetrix Systems, Inc., and Mr Frederick Reichheld. FY24 is the first year Suncorp is reporting Group Consumer Insurance NPS
FY24 figure subject to independent limited assurance by KPMG. Please refer to the limited assurance opinion included on the Suncorp Group website
RFI Global - Atlas. Measured as at June each FY on a 6-month rolling average amongst Suncorp Bank retail MFI customers. Net Promoter Score[SM] is a trademark of Bain & Co Inc., Satmetrix Systems, Inc., and Mr Frederick Reichheld
“Any” includes women, men, non-binary and gender diverse employees, and those with a trans history or experience
Representation rates of non-binary and gender diverse employees, and those with a trans history or experience, remain below 1%
From FY20 baseline of 20.5%
Data is provided annually on a voluntary basis and disclosure response rates vary across diversity groups. First Nations data refers to employees who are Aboriginal, Torres Strait Islander or Aboriginal & Torres Strait Islander. It includes a subset of employees who identify as ‘Other First Nations’ and ‘Australia’ as their place of birth and ‘Australian’ as their cultural identity. Identity response options are guided from the Australian Bureau of Statistics Classification and Cultural Ethnic Groups (narrow groupings) and with employee input
Data is provided annually on a voluntary basis and disclosure response rates vary across diversity groups. Indigenous data refers to Māori and Pasifika (Pacific Islander). It includes a subset of employees who identify as ‘Other First Nations’ and ‘New Zealand’ as their place of birth and ‘New Zealand’ as their cultural identity. Identity response options are guided from the Australian Bureau of Statistics Classification and Cultural Ethnic Groups (narrow groupings) and with employee input
Employee engagement is measured by Workday Peakon Employee Voice, a product of Workday, an independent company and a separate entity to Suncorp, and is scored out of 10.0. The final reporting period for the financial year spanned from 24 June to 7 July 2024. The engagement platform is live and as at 30 June, the reported engagement result was 8.4. This result was maintained for the remainder of the period
The global top quartile in financial services sector for FY24 was 8.3. The financial services sector benchmark is sourced from Workday Peakon and consists of the average engagement score of all organisations in the industry
Employees born outside Australia, Aotearoa (New Zealand) and Britain
Scope 1 & 2 emissions performance is measured from FY20 baseline of 18,707 tC02-e using the Scope 2 market-based greenhouse gas (GHG) accounting methodology from the GHG Protocol Scope 2 Guidance. We track our emissions aligned to the Science-Based Target initiative (SBTi) Corporate Net-Zero Standard
Excludes New Zealand
Calculated with 12 months of reporting January-December. Only includes those entities that are eligible to be included in Payment Times Reporting and have been reported to the regulator. Excludes non-trade credit arrangements and calculated as per the regulator’s guidelines. Small business defined by Payment Times Reporting Scheme as a business that has an annual turnover of <$10M
Indigenous suppliers defined as Aboriginal and Torres Strait Islander businesses registered with Supply Nation
Based on Global Investor Coalition definition

FY24 Annual Report 29

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Our approach to risk management

Risk and compliance management drives customer and performance outcomes essential to achieving Suncorp’s purpose, strategy, and business plan, and is key to maintaining our social licence to operate.

Suncorp has policies, systems, processes, and people in place to identify, assess, manage, and monitor internal and external sources of material risk. Effective risk and compliance management is supported by:

Ά An Enterprise Risk Management Framework, through which the Board sets the direction of risk management.
Ά The Board Risk Committee who provide oversight across the Group for all categories of risk, including the processes used to identify, evaluate, and manage risk.
Ά A sound risk culture – also supported by Board Risk Committee oversight – that is underpinned by core Suncorp behaviours of Being Courageous, Caring for Others, and Doing the Right Thing.
Ά A Risk Appetite Statement that is aligned to the Suncorp strategy and sets out the nature and degree of risk the Board is willing to accept in the pursuit of business objectives.
Ά The Three Lines of Defence Model and clear accountabilities with risk owned in the first line.
Ά An independent Risk function that oversees and challenges risk management in the business and drives Suncorp’s Risk Strategy.

Enterprise Risk Management Framework

Suncorp’s Enterprise Risk Management Framework (ERMF) lays the foundation for the Group’s approach to risk management. The framework provides a holistic approach to risk management covering all financial, non-financial and strategic risks.

The ERMF sets out accountabilities, governance arrangements and processes for the management of risk within the Three Lines of Defence Model. It evolves with the business strategy and operating environment.

Risk Appetite Statement

Risk appetite is the expression and definition of the risk that Suncorp is willing to accept in the pursuit of strategic objectives.

The Suncorp Group Risk Appetite Statement (RAS) has been set in consideration of Suncorp’s strategy. It sets out where the Board wishes to avoid, limit, tolerate, or seek risk. The RAS is an integral component of the strategic business planning cycle and is defined and reviewed in tandem with the review of Suncorp’s internal and external operating environment and strategic objectives.

Risk governance

Accountability for the governance of risk management exists at two levels. Primary accountability rests with the Board, the Board Risk Committee and the Board Audit Committee; the second rests with the Group CEO and Executive Leadership Team, in the execution of the ERMF and application of the Three Lines of Defence Model.

CRO attendance at Board and management committee meetings is required for committees that monitor and oversee material risks. The CRO team has authority to challenge decisions and may escalate matters through functional reporting lines and to the Board Risk and Audit Committees.

Suncorp’s remuneration scorecards consider risk management results and behaviours in performance and remuneration outcomes. More information is available in the Remuneration Report on page 54.

Three Lines of Defence Model

The Three Lines of Defence Model supports our risk taking through clarity of ownership and independent oversight with the clear expectation that:

Ά All business areas (the First Line of Defence) are responsible for management of their risks. The First Line of Defence own their risks and compliance with policies, frameworks, standards and the RAS.
Ά The Risk function forms the independent Second Line of Defence team that defines the risk and compliance management approach, policies, frameworks, standards and processes. The Risk function supports the business in our risk-taking through advice, oversight and effective challenge.
Ά Internal and External Audit are the Third Line of Defence who provide independent reporting to the Board Audit Committee and Board Risk Committee.

Internal Audit

Suncorp’s Internal Audit function provides assurance to the Board Audit Committee (and other Board Committees as required) on the quality and effectiveness of Suncorp’s risk management framework. Internal Audit’s objectives include:

Ά assessing whether risks are adequately identified and assessed
Ά assessing whether internal controls are adequately designed and effectively operating to mitigate those risks
Ά assessing the effectiveness of Second Line of Defence activities
Ά assessing risk culture through the conduct of audits

Risk Strategy

Risk and compliance management supports Suncorp in building futures and protecting what matters, through optimised risk taking. The Risk Strategy evolves to meet the changing needs of Suncorp and our customers. Key initiatives in the Risk Strategy relate to simple and effective risk experience, data analytics, enhancing the control environment and risk culture and capabilities. These initiatives take into account business objectives, regulatory requirements, industry events and emerging risks.

Ά conducting investigations on behalf of the Board Audit committee, senior management and regulators as required.

30 FY24 Annual Report

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FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Key emerging and strategic risks

Identifying and managing emerging and strategic risks is integral to Suncorp’s strategy. Strategic risks threaten the viability of Suncorp’s business model due to changes in the external business environment, economy, political landscape, regulation, technology and/or community expectations. Suncorp continues to monitor key emerging and strategic risk trends as outlined below.

==> picture [498 x 552] intentionally omitted <==

----- Start of picture text -----

Emerging and strategic risks Mitigations
Accelerated evolution of AI Ά We have specific focus in our Strategy on leveraging AI opportunities.
AI impacting current value propositions, Ά We are uplifting our risk and control systems to manage new and elevated risks due to
profitability, the workforce and our Ά the evolution of AI.Suncorp’s Data Ethics Commitments are embedded into the assessment of new AI use-
relationship with customers.
cases.
Customer affordability and access Ά We continue to proactively engage with government and industry in alignment with our
four-point plan to improve resilience and mitigation.
Higher premiums resulting from a range Ά We have a multi-year investment in modernising our technology platforms to enable us
of external and internal factors, impacting
to develop and configure product offers based on customer needs.
customers’ ability to access adequate Ά We are focused on strengthening our digital capabilities and automating processes to
insurance coverage. ensure we are running our business as efficiently as possible.
Climate change Ά We perform scenario analysis to understand the potential impacts of climate change
and manage the associated risks and opportunities.
Continued warming increasing frequency Ά We advocate for cross-sector collaboration and greater investment in building
and severity of weather-related Insurance
household and community resilience against natural hazards.
claims, making more property risks uninsurable, with wider associated societal Ά We are committed to reducing our own emissions and supporting an orderly transition
to a low-carbon future.
impacts. Ά We manage the impact of natural hazards through best-in-class claims processes,
sophisticated pricing and underwriting models and a comprehensive reinsurance plan.
Geopolitical risks Ά We monitor the risk of systemic shifts in the global environment, such as a prolonged
subdued macroeconomy or a global financial crisis-type event that restricts access to
Ongoing global instability potentially
capital and/or reinsurance.
impacting financial markets, supply chains and trade. Ά We manage our business responsibly, protecting Suncorp’s balance sheet and maintaining conservative buffers to address uncertainties and support our customers
through high-value products and services.
Ά We work closely with key suppliers to strengthen our supply chain.
New cyber threats Ά We have integrated cyber risk prevention, monitoring and response measures into
our risk framework, to safeguard against threats and ensure a resilient technology
Cyber threats continuing to evolve in both
environment.
frequency and sophistication, with potential Ά We are investing in data protection and privacy initiatives to further strengthen our
customer data and privacy impacts.
capabilities.
Evolving workforce Ά We conduct strategic workforce planning to forecast the impacts of AI and digitisation
on employees and provide support to reskill our people where required.
Rapid shifts towards digital/AI and Ά We align our people strategy, employee value proposition and culture to our purpose,
employees increasingly seeking workplaces
to attract and retain talent. We continue to value flexibility at Suncorp, supporting a
that reflect their values and provide
hybrid working approach.
flexibility. Cost of living concerns and Ά We continue to invest in a variety of safety and wellbeing options for our people.
societal prevalence of mental health issues
could impact our employees.
Changes in customer behaviour Ά Our strategy is customer-led and technology-enabled.
Changes to private vehicles and home Ά Our business plan responds to changing customer behaviours, including mobility and
maintenance, combined with business model digital trends.
Ά We are exploring innovative new Insurance propositions and distribution models.
innovation and strategic partnerships, that
impact existing industry dynamics.
Regulatory change Ά We actively and constructively engage with regulators in Australia and New Zealand to
deliver the best outcomes for our customers and shareholders.
The evolving regulatory and government environment in Australia and New Zealand Ά We participate in industry forums and collaborate with key stakeholders to advocate
for a fair and balanced approach to regulatory change.
could impact demand for our products, Ά We maintain strong governance over the implementation and embedding of regulatory
investment returns and compliance risk.
change.
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FY24 Annual Report 31

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CORPORATE GOVERNANCE

FY24 Corporate Governance Statement

Suncorp’s Corporate Governance Statement (Statement) outlines our approach to corporate governance and our principal governance practices.

The Board believes high standards of corporate governance are essential to achieving Suncorp’s business objectives, which are aimed at creating value and sustainable outcomes for Suncorp shareholders, customers and the communities in which Suncorp operates.

This Statement:

Ά has been approved by the Board

Ά reports Suncorp’s compliance with the 4th edition of the ASX Corporate Governance Council’s Principles and Recommendations Ά is current as at 19 August 2024.

Corporate Governance Framework

==> picture [497 x 272] intentionally omitted <==

----- Start of picture text -----

Shareholders
Accountability
Assurance Board Group CEO
Delegation
ΐ External auditor
ΐ Internal auditor
Independent
Advice
Executive
Leadership
ΐ Independent legal or other Team
professional advice
Board People &
Board Audit Board Customer Board Nomination Board Risk
Remuneration
Committee Committee Committee Committee
Committee
Delegation
Accountability
Accountability
Endorsement & Reporting
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32 FY24 Annual Report

REMUNERATION REPORT FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

The Board’s areas of focus during FY24

The Board’s FY24 governance activities, both directly and through its Committees, included:

Ά oversight of the extensive two year process associated with the sale and transition of Suncorp Bank to ANZ, including:
participation in the relevant legal, regulatory and government approval processes that culminated in completion of the sale on 31 July 2024
management’s significant program of work to successfully complete the sale, including complex separation of the Bank and Insurance customer data, and effective management of risks within risk appetite
establishing the formal arrangements that underpin the provision of transitional business and technology services to Suncorp Bank for an agreed period following completion
Ά oversight of management’s delivery of its strategic priorities for Suncorp’s Insurance and Bank businesses, including a significant technology transformation for the Insurance business
Ά robust discussion on, and approval of, management’s FY2527 strategic plan, through two dedicated annual sessions, supplemented by additional checkpoint discussions during scheduled Board meetings and information sessions
Ά continued oversight of management’s delivery of its people strategy, including:
an evolution in the operating model for Suncorp’s Insurance businesses, including enhanced ways of working, so that we can respond quickly to emerging customer needs and the broader external environment
Ά dedicated sessions to consider Board governance and performance, including the annual Board and Committee appraisal process, which was facilitated by an external consultant, and included consideration of the optimal Board governance structure (including structure and remit of the Board Committees) to support Suncorp’s ambition to be the leading Trans-Tasman insurer
Ά continued focus on Board education and development, including through:
site visits and immersion sessions, to gain valuable first-hand insights in relation to Suncorp’s businesses, people and key trends impacting Suncorp (including ESG and technology)
dedicated sessions to understand the external cyber security environment and oversee the activities being undertaken to continuously mature Suncorp’s control environment
discussions with external advisers where relevant and necessary
Ά ongoing engagement with:
institutional investors and proxy advisors, including in relation to ESG and remuneration matters
retail shareholders including through Suncorp’s 2023 Annual General Meeting (AGM), which was again held in a hybrid format enabling shareholders to participate in person or online
key regulators, government and industry stakeholders, including our continued advocacy for increased natural hazard mitigation and community resilience measures, and other opportunities to improve insurance affordability.
ensuring our people continue to build the capabilities they need through learning and development opportunities, particularly as Suncorp embeds more modernised technology
Ά continued oversight of management’s successful implementation of a significant volume of regulatory change initiatives
Ά ongoing oversight of existing and emerging risks, and activities to enhance Suncorp’s risk maturity
Ά ongoing focus on Board renewal, including the appointment of Gillian Brown as a non-executive director in February 2024. Gillian brings to the Board extensive risk management, legal and regulatory expertise in financial services, as well as strong credentials in managing ESG initiatives

FY24 Annual Report 33

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

The Board

Members of the Board

Suncorp’s Board currently consists of nine non-executive, independent directors (including Chairman Christine McLoughlin AM) and one executive managing director (Group CEO Steve Johnston).

Biographical details for each director, including their tenure, are disclosed in the Directors’ Report on page 47 and on our website.

Learn more[1]

Director independence – FY24 assessment

Based on its latest annual assessment, the Board considers that throughout FY24, the Board Chairman and all Suncorp nonexecutive directors have remained independent and have satisfied the Board’s independence criteria (which align with the guidance provided by the ASX and other regulators). The Board’s position on certain specific director interests follows:

Ά Gillian Brown is a non-executive director of QIC Limited (QIC)
Ά Ian Hammond is a non-executive director of Perpetual Limited (Perpetual)

The roles and responsibilities of the Board and management

Suncorp’s Constitution states that its business and affairs are to be managed under the Board’s direction. The Board Charter:

Ά states that the Board’s role is one of stewardship on behalf of stakeholders, ensuring that Suncorp remains sustainable and effective in the present and for the future
Ά clearly sets out the Board’s responsibilities, powers and duties and describes those matters expressly reserved for the Board’s determination and those matters delegated to management.

Other than the responsibilities specifically reserved for the Board and its Committees in their respective Charters, responsibility for management of the day-to-day business activities is delegated to the Group CEO who is accountable to the Board.

The Board regularly reviews the Board Charter and the delegation of Board authority to the Group CEO.

The Suncorp Constitution, and Board and Committee Charters are available in the Governance & policies section of our website.

Learn more[2]

Director independence

The Board Charter requires that the Chairman, and a majority of directors, are independent, non-executive directors.

Ά Lindsay Tanner is a director of Industry Super Holdings Pty Ltd (ISH) and its related entity IFM Investors Pty Ltd (IFM)
Ά Duncan West is Chairman of Challenger Limited (Challenger).

QIC, Perpetual, ISH, IFM and Challenger, or their related entities (Entities) may provide asset, investment or fund management services, or trustee services, to Suncorp. In addition, these Entities may hold Suncorp Group Limited securities from time to time. However, none of these Entities currently hold what is considered to be a substantial shareholding under the Corporations Act.

Gillian, Ian, Lindsay and Duncan have each confirmed that as a director of QIC, Perpetual, ISH, IFM or Challenger (as relevant) they have no involvement in, or influence over, any decisions made in relation to any of the above activities.

Ian also receives a fixed post-termination benefit from his former partnership, PricewaterhouseCoopers (PwC) following his retirement in 2015. From time to time, Suncorp engages PwC to provide consulting services, which are not considered material in nature or quantum. Ian does not participate in any decision to engage PwC.

Accordingly, the Board does not believe that the work performed by QIC, Perpetual, PwC, ISH, IFM or Challenger affects the independence of Gillian, Ian, Lindsay or Duncan (as relevant).

However, the Board has robust processes to manage actual, potential or perceived conflicts of interest, as outlined in the following section.

All Suncorp non-executive directors are expected to bring independent judgement to the Board’s deliberations, and to constructively challenge management where required. In addition, the non-executive directors hold regular discussions during scheduled Board and Committee meetings without the Group CEO or other management in attendance.

The Board formally assesses the independence of its directors on appointment, and when reviewing each non-executive director’s annual attestation. A register of directors’ interests is kept current, to facilitate an ongoing assessment throughout the year.

The Board also gives consideration to a non-executive director’s tenure on the Board in assessing independence, but the mere fact that a director has served on the Board for a substantial period does not mean that the director can no longer be considered independent.

suncorpgroup.com.au/about/committees
suncorpgroup.com.au/about/corporate-governance

34 FY24 Annual Report

REMUNERATION REPORT FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Managing director conflicts of interest

The Constitution, Board Charter and Suncorp Code of Conduct highlight the importance of managing actual, potential or perceived conflicts of interest.

Each director has a continuing obligation to keep the Board advised of any interest that has arisen that could potentially conflict with those of Suncorp.

Where a director has an actual, potential or perceived conflict in relation to a matter being considered by the Board, the director will:

Ά declare that conflict of interest
Ά not receive the relevant Board papers
Ά not be present when the matter is considered during a Board or Committee meeting, and
Ά not participate in any decision on the matter,

unless the Board Chairman (or if the relevant director is the Board Chairman, either of the Board Audit or Risk Committee Chairmen) determines otherwise.

The Suncorp Code of Conduct is available in the Governance & policies section of our website.

Learn more[1]

Board composition

Suncorp’s Constitution and Board Charter require that the Board is comprised of a minimum of five and a maximum of 13 directors.

Board skills matrix

The Board skills matrix sets out the key skills, expertise and qualities that the Board believes are necessary for the effective governance of Suncorp.

During FY24, the Board reviewed and updated the matrix categories, to ensure that they reflect Suncorp’s strategic priorities and operating environment, in particular:

Ά oversight of Suncorp Bank’s execution of its strategic priorities, and Suncorp’s preparedness for the sale of the Bank to ANZ (which was completed on 31 July 2024)
Ά oversight of the Insurance business’ execution of its strategic priorities
Ά looking forward, Suncorp’s ambition to be the leading TransTasman insurer, including oversight of management’s execution of a significant technology transformation, while also providing transitional business and technology services to Suncorp Bank for an agreed period following the sale.

Each director undertakes an annual self-assessment against the skills matrix categories, which are then aggregated and peerreviewed by the Board.

Suncorp’s 2024 Board skills matrix (as shown on the following page):

Ά demonstrates good alignment between the Board’s currently desired and actual range of skills and expertise
Ά provides a granular view of areas the Board will seek to add to the Board’s collective capabilities in the future.

The composition of the Board reflects the Board’s ongoing:

Ά commitment to ensuring its directors collectively have a sufficient mix of skills, expertise and diversity required for the effective governance of Suncorp as a Trans-Tasman insurer
Ά objective of maintaining a balance between longer-serving directors with established experience and knowledge of Suncorp’s business activities, and new directors who bring fresh perspectives.

Given the average non-executive director tenure is currently six years, the Board intends to:

Ά seek stability in the composition of the Board through the reelection at the 2024 AGM of Chairman Christine McLoughlin, Sylvia Falzon, Lindsay Tanner and Duncan West (each of whom have served three years since last being re/elected)
Ά continue to renew the Board in an orderly manner, including through the appointment of Gillian Brown in February 2024. Gillian will also seek election by shareholders at the 2024 AGM.
suncorpgroup.com.au/about/corporate-governance

FY24 Annual Report 35

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

2024 Board skills matrix

Category	Description	Director Ratings
Customer	Experience in developing and delivering customer strategies, meeting customer
Outcomes	expectations and delivering the right customer outcomes, consistent with Suncorp’s	7			3
	focus on customer obsession.
Leadership	Experience gained while performing at a senior executive level in an organisation of
	signifcant size and complexity. Successful delivery of business outcomes. Promotion of an ethical ‘tone from the top’. Driving engagement, enablement and accountability, and	8			2
	leading organisation change.
Corporate Strategy	Reviewing, setting and monitoring the efective implementation of organisational strategy, and organic and inorganic growth opportunities.	9				1
Corporate	Designing and implementing corporate governance frameworks, with a focus on best
Governance	practice Board governance and the related legal and regulatory frameworks. This includes experience as a director of a listed company or other organisation of signifcant	8			2
	size and complexity.
Risk	Identifying, assessing and monitoring responses to existing and emerging fnancial
Management	and non-fnancial risks, setting risk appetite, building and adapting organisational risk	8			2
	culture, implementing compliance frameworks (including regulatory compliance).
Environment and Social	Identifying, assessing and monitoring responses to existing and emerging risks and opportunities arising from environmental and social issues.	3	7
Stakeholder	Protecting and enhancing company reputation. Building stakeholder trust and
Engagement and Advocacy	confdence in an organisation. Managing relationships with key stakeholders, including shareholders, government, regulators and leading industry bodies. Advocating for public	8			2
	policy decisions and outcomes that beneft customers and communities.
People and	Developing and sustaining the right corporate culture, including strategic workforce
Culture	planning, and employee diversity, inclusion, health, safety and wellbeing. Experience in attracting and retaining executive talent through disciplined and fair executive	8			2
	remuneration frameworks, and efective succession planning.
Financial	Profciency in fnancial management and reporting for organisations of signifcant size
Acumen	and complexity. Implementing fnancial and capital management strategies, corporate fnance restructuring, capital raisings within risk appetite, taxation and actuarial	7			3
	experience.
Technology	Experience in leveraging the use of technology, including implementing technology-led
and Data	change and data analytics. Understanding of privacy and data regulation. Identifying,	3	7
	assessing and monitoring responses to cyber-security risk.
Digital Innovation	Experience in developing and executing digital strategies that transform and enhance the customer experience. Strong understanding of emerging digital technologies.	9				1
General Insurance	Personal and commercial insurance experience, including strong knowledge of the regulatory landscape and competitive environment.	6		3		1
Banking	Domestic and/or international experience in banking, including strong knowledge of the regulatory landscape for Authorised Deposit-taking Institutions.	4	5			1

High competency, knowledge and experience

Practised/direct experience

Awareness

36 FY24 Annual Report

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Board renewal

Where the Board has identified the need for a new director, whether as part of its skills matrix review or its ongoing succession planning, the Board Nomination Committee will assist with a candidate search and make a recommendation to the Board. An external consultant may be engaged to support the search process.

A new director is only appointed after the completion of appropriate checks, in accordance with Suncorp’s Fit and Proper Policy (which in turn meets the requirements set out in APRA’s Prudential Standard CPS 520 Fit and Proper, and also applies to Executive Leadership Team (ELT) appointments). Directors are formally assessed against this policy on appointment, and annually thereafter, to confirm they are of good standing, and that they possess/have maintained the necessary competence, character, diligence, experience and judgement required to fulfil their role.

Suncorp has formal letters of appointment in place with each nonexecutive director, which set out their appointment terms. The Group CEO has an employment contract.

Any new non-executive director that is appointed by the Board seeks election by shareholders at the AGM following their appointment (consistent with the Corporations Act and the ASX Listing Rules).

Suncorp discloses all information relevant to the election of a new non-executive director in the AGM Notice of Meeting.

Once elected, each continuing non-executive director seeks reelection by shareholders every three years at an AGM, subject to the recommendation of the Nomination Committee and support of the Board. The Board’s recommendation in relation to each director seeking re-election is disclosed in the AGM Notice of Meeting.

At the 2024 AGM, one director is seeking election and four directors are seeking re-election.

The Board Renewal Policy is set out in the Board Charter, which is available in the Governance & policies section of our website.

Learn more[1]

Director induction and education

New non-executive directors meet with the Board Chairman, the Group CEO, members of the ELT, other relevant senior managers (including the Suncorp Group Customer Advocate) and the external auditor, to gain knowledge about Suncorp’s structure, business activities, strategic priorities and key risks.

Ongoing director education is provided through regular management presentations on key business activities and issues that are topical for Suncorp, including areas that are subject to regulatory or operational change. Directors also engage with, and receive presentations from:

Ά employees throughout Suncorp, including customer-facing employees
Ά external experts, where relevant and required.

Directors supplement their understanding, beyond that facilitated by Suncorp, on topical issues of broader significance.

Directors’ access to information and independent advice

Directors have full access to Suncorp’s internal records, to the ELT and to other relevant senior management.

The Board collectively and each director individually, are entitled to obtain independent professional advice, if considered necessary to fulfil their duties and responsibilities. Where the advice is sought by an individual director, the Chairman’s prior approval is required, and a copy of any professional advice received by the director is made available to all other Board members, except where the circumstances would make that inappropriate.

Board performance evaluation

The Board undertakes an annual evaluation of its performance, as well as the performance of its Committees and each director individually, including the Chairman. The Board and Committee Chairmen facilitate group discussions, and the Chairman meets individually with each director. Insights obtained from questionnaires completed by each director and ELT member inform this process. The Board then discusses and considers the outcomes of the evaluation and agrees any necessary recommendations.

In addition, the Board periodically engages the assistance of an external consultant to facilitate the evaluation process, as was the case for the evaluation completed during 2024. During the 2024 review, the external consultant met with each director and member of the ELT to discuss Board performance, interactions with management and continuous improvement opportunities. The Board is progressively addressing the insights obtained.

The above structured evaluation processes supplement an ongoing focus at Board and Committee meetings on continuous improvement opportunities, including in relation to workplans, agendas and materials to support effective meeting discussions between Directors and management.

Board Committee composition and responsibilities

The Board currently has five standing Board Committees to assist it in discharging its responsibilities:

Ά Audit Committee
Ά Customer Committee
Ά Nomination Committee
Ά People and Remuneration Committee
Ά Risk Committee.

During FY25, the Board will give consideration to the optimal structure and remit of the Board Committees for Suncorp as a Trans- Tasman insurer.

The Board Committees are comprised of:

Ά non-executive directors only
Ά at least three members, a majority of whom must be independent
Ά a chairman, who must be independent. For all standing Committees other than the Nomination Committee, the Board Chairman does not serve as Committee chairman.
suncorpgroup.com.au/about/corporate-governance

FY24 Annual Report 37

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Board Committee composition and responsibilities (continued)

The Board, at the Nomination Committee’s recommendation, reviews and confirms Board Committee composition at least annually, to ensure that each Committee has the requisite skills and expertise to remain effective in carrying out its role. The Board also has a practice of periodically changing the Chairmen of its Committees.

The Board may also establish other ad-hoc Board Committees as required, to deal with specific matters and for a specific duration of time. For example, during FY24, the Board determined it necessary to hold Board Sub-Committee meetings to supplement the Board’s oversight of the sale of Suncorp Bank. Looking forward, it is the Board’s current intent to oversee ongoing matters relating to the transition of the Bank directly and through its standing Board Committees.

To ensure directors remain informed in relation to material matters that are discussed at Board Committee meetings:

Ά there is a standing invitation for directors who do not serve as members of a given Board Committee to attend meetings of that Committee
Ά copies of Board Committee meeting papers and minutes are provided to all directors, regardless of whether they currently serve as a member of the relevant Committee
Ά a written report from the Chairman of each Board Committee is submitted to the next Board following the relevant Committee meeting.

A summary of each standing Board Committee’s role, as set out in the relevant Committee Charter, follows. Each Committee regularly reviews its Charter, and any proposed enhancements are subsequently approved by the Board.

The number of Board and standing Board Committee meetings held during FY24 (and director attendance at those meetings) is disclosed in the Directors’ Report on page 48. Membership of standing Board Committees is detailed in the Director biographies, which are disclosed in the Directors’ Report on page 43 and on our website.

Learn more[1]

The standing Board Committee Charters are available in the Governance & policies section of our website.

Learn more[2]

Ά reviewing related reports from management, the Appointed Actuary, and the external auditor in relation to matters impacting Suncorp’s statutory and regulatory financial reporting
Ά reviewing the appointment, compensation, performance, effectiveness, and independence of the external and internal auditors, including:
oversight of annual work plans
reviewing the provision of non-audit services by the external auditor to ensure there is no actual or perceived impact on the external auditor’s independence
discussions with the auditors in the absence of management
Ά assessing the adequacy of any actions taken by management where the internal or external auditors have identified weaknesses in controls or procedures.

Customer Committee

The Board established the Customer Committee in 2018, following the Financial Services Royal Commission, to assist the Board in promoting its collective vision of Suncorp’s customer obsession aspirations and culture. Specific matters addressed through the year, in accordance with its Charter, include:

Ά oversight of customer complaints, appropriate root cause analysis, and management’s actions to address them
Ά monitoring and guiding management’s specific activities to support customers experiencing vulnerability
Ά receiving regular reports from the Suncorp Group Customer Advocate, including in relation to the effectiveness of Suncorp’s engagement with customers and their representatives.

Nomination Committee

The Nomination Committee assists the Board in achieving the optimal composition of the Board and Board Committees, by:

Ά making recommendations to the Board in relation to:
succession planning for non-executive directors, including the consideration of potential new candidates and confirming support for the re-election of non-executive directors
the composition of Board Committees
Ά periodically reviewing the Board skills matrix categories, to ensure that they remain appropriate
Ά ensuring that appropriate processes are in place to support:
director induction and continuing education

Audit Committee

The Audit Committee assists the Board in its oversight of Suncorp’s financial and operational control environment. Specific matters addressed through the year, in accordance with its Charter, include:

an annual review of the performance and effectiveness of the Board, its committees and individual directors.
Ά overseeing the integrity of the half-year and annual financial statements prior to consideration by the Board
Ά overseeing compliance with all disclosure requirements associated with Suncorp’s statutory and regulatory financial and taxation reporting, including Australian Accounting Standards, and APRA and the Australian Securities and Investments Commission’s requirements
suncorpgroup.com.au/about/committees
suncorpgroup.com.au/about/corporate-governance

38 FY24 Annual Report

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

People and Remuneration Committee

The People and Remuneration Committee assists the Board in overseeing that Suncorp’s people and remuneration frameworks support the achievement of Suncorp’s strategic and cultural objectives and are fair, transparent and responsible. Specific matters addressed through the year, in accordance with its Charter, include:

Ά reviewing and making recommendations to the Board in relation to:
Suncorp’s remuneration framework, including an assessment of the effectiveness of the remuneration framework and its compliance with any applicable legal and regulatory requirements
the remuneration arrangements and outcomes for the Group CEO, senior executives and other specified roles
the structure and operation of equity-based plans, including performance measures and outcomes in relation to short and long-term incentive grants for the Group CEO, senior executives and other accountable persons
the size of the annual short-term incentive and fixed pay increase pools across the Group
recruitment, retention and termination for senior executives
development and succession planning for senior executives
decisions relating to deferral of variable remuneration, and application of malus and/or clawback if applicable
the remuneration of non-executive directors
measurable objectives for achieving diversity in the composition of the Board, senior executives and employees generally
Ά reviewing management’s implementation of organisational culture, diversity and inclusion initiatives
Ά reviewing management’s employee engagement and talent management strategies.

Risk Committee

The Risk Committee assists the Board with oversight across all categories of risk and risk culture. Specific matters addressed throughout the year, in accordance with its Charter, include:

Ά ensuring that Suncorp’s risk and compliance frameworks and management policies remain appropriate to the size, business mix and complexity of Suncorp, and are consistent with Suncorp’s business plan
Ά overseeing management’s processes for the identification, assessment and management of financial and non-financial risk and compliance, in accordance with Suncorp’s related policies and frameworks
Ά reviewing, approving and making recommendations to the Board (as appropriate) in relation to Suncorp’s risk management strategies, Risk Appetite Statements (RAS), the Enterprise Risk Management Framework (ERMF) and other policies in relation to specific categories of risk
Ά overseeing management’s implementation of the ERMF and adherence to RAS and other internal risk and compliance management policies
Ά reviewing and considering Suncorp’s risk profile, including emerging risks and risk culture, through regular reports from management
Ά undertaking all risk-related activities required of the Board or Risk Committee by APRA and other regulators.

Company Secretaries

The Company Secretaries provide advice and support, and are directly accountable, to the Board through the Chairman, for all corporate governance matters relating to the Board’s efficient functioning. The Company Secretaries are appointed and removed by the Board, and each director can communicate directly with each Company Secretary.

Darren Solomon was appointed by the Board as Company Secretary in 2010. Cassandra Hamlin was appointed by the Board as Company Secretary in 2022. Darren’s and Cassandra’s biographical details are disclosed in the Directors’ Report on page 48.

Suncorp’s purpose, values and culture

The Board and management believe that how we achieve our purpose of ‘building futures and protecting what matters’ is equally as important as the results we deliver.

Our Being @ Suncorp behaviours provide everyone at Suncorp with clear and consistent behavioural expectations that will support the achievement of our desired culture.

Further detail about Suncorp’s purpose and values, which work together with our Code of Conduct, are disclosed in our How we create value section on page 11.

Suncorp’s alignment of remuneration outcomes with consequence management is disclosed in the Remuneration Report on page 68. Material breaches of the Code are also reported to the Board.

Whistleblower protection

Suncorp supports and promotes a culture where our people feel able to report instances of wrongdoing. Suncorp’s Whistleblower Policy describes additional protections and support that are provided to people in circumstances where the nature of the reportable conduct requires it.

A summary of de-identified incidents that are reported under the Whistleblower Policy are disclosed to the Board.

Anti-bribery and corruption policy

Suncorp has zero tolerance for illegal activity and requires compliance with all anti-bribery and corruption laws in all markets and jurisdictions in which we operate or conduct transactions.

Suncorp’s Code of Conduct and Anti-Bribery and Corruption Policy prohibit our people from:

Ά offering, accepting, soliciting or paying any bribe in any form (including facilitating payments)
Ά engaging in any form of corruption, regardless of the intended beneficiary of the activity.

Any material breaches of the Anti-Bribery and Corruption Policy would be reported to the Board. If evidence of illegality were to be identified, the matter would also be referred to the relevant law enforcement agency.

Political engagement

Suncorp’s policy continues to prohibit direct cash donations to political parties or candidates, and any political expenditure reflects a non-partisan approach to political engagement.

Learn more[1]

suncorpgroup.com.au/about/corporate-governance

FY24 Annual Report 39

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Trading in Suncorp securities

The Corporations Act and Suncorp’s Securities Trading Policy prohibit directors, executives and all employees from trading in Suncorp securities at any time while in possession of price sensitive information. In addition:

Ά directors and prescribed persons are prohibited from trading in Suncorp securities at certain times including prior to the release of Suncorp’s half-year and full-year financial results to the ASX, and the AGM
Ά directors and employees must not enter into a hedging transaction that is designed to limit the economic risk of holding in Suncorp securities.

Continuous disclosure

Suncorp’s Disclosure Policy and associated procedures set out Suncorp’s approach to ensure awareness of, and compliance with, our legal continuous disclosure obligations. This includes the disclosure of required material information about Suncorp’s activities in a timely and balanced manner to all market participants equally, through lodgement with the ASX.

The Group Chief Financial Officer (Group CFO) is Suncorp’s Corporate Disclosure Officer. Management’s Disclosure Committee assists the Corporate Disclosure Officer with ensuring compliance with Suncorp’s continuous disclosure obligations. The Disclosure Committee meets regularly, and is engaged otherwise as required, to consider matters that may require disclosure, and to review and approve the content of proposed material for lodgement with the ASX. In the case of significant ASX announcements, Board engagement, or where required Board approval, is facilitated (and the Board receives copies of all such announcements).

The Whistleblower, Anti-Bribery and Corruption, Political Engagement, Securities Trading and Disclosure Policies are available in the Governance & policies section of our website.

Learn more[1]

Engaging with our shareholders

Shareholder communication

Copies of all Suncorp ASX announcements are available to all shareholders, and other market participants and interested stakeholders, via the ASX and on our website.

In addition to the specific corporate governance-focused materials that are outlined in this Statement, Suncorp also publishes other relevant information about the Suncorp Group on our website.

We encourage Suncorp shareholders to register to receive shareholder communications electronically, by contacting our share registry, Link Market Services (Link). Link is also available to assist with other shareholder-related matters.

Further, shareholders can subscribe to receive email news updates from Suncorp. Suncorp’s Investor Relations team also:

Ά maintains a list of Frequently Asked Questions on our website
Ά responds to questions from shareholders that are submitted to the email address on our website.

Investor relations program

Suncorp’s investor relations program enables ongoing two-way communication with institutional investors, retail shareholders, market analysts and proxy advisors.

Consistent with Suncorp’s broader approach to continuous disclosure, when investor presentations are held (including those that accompany the announcement of our half-year and full-year results) the presentation materials are lodged with the ASX prior.

These materials, and access to webcast recordings, are also made available on our website.

Learn more[2]

Suncorp’s practice is to implement blackout periods prior to the announcement of our half-year and full-year results, during which time Suncorp does not discuss any non-public financial performance or forecast information with market participants or other external parties.

Annual General Meeting

The AGM is a key two-way engagement opportunity for the Suncorp Board, ELT and our shareholders, particularly our retail shareholders. An accompanying Notice of Meeting is made available to shareholders at least 28 days prior to each AGM and clearly sets out:

Ά the ways in which shareholders can participate in the AGM
Ά the business to be considered and voted on during the AGM
Ά that voting on each proposed resolution is conducted by poll, rather than by a show of hands.

Suncorp provides a range of means through which shareholders can vote and ask questions, both ahead of and during the AGM, and observe the meeting proceedings.

Since 2022, Suncorp has adopted a hybrid format for its AGMs, to facilitate attendance by shareholders in person and virtually.

For those shareholders and other interested stakeholders who are unable to participate during the live AGM, a webcast recording is made available on our website.

Learn more[3]

Integrity of corporate reporting

Board oversight of Suncorp’s financial reporting

The role of the Audit Committee is set out in the Board Committee composition and responsibilities section of this Statement.

The Board has approved an Auditor Independence Policy, which outlines the processes that are in place to ensure that Suncorp’s external auditor is independent and is perceived to be independent.

The Auditor Independence Policy is appended to the Audit Committee Charter, which is available in the Governance & policies section page of our website.

Learn more[1]

Learn more[2]

suncorpgroup.com.au/about/corporate-governance
suncorpgroup.com.au/investors
suncorpgroup.com.au/investors/agm

40 FY24 Annual Report

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

External audit

KPMG is Suncorp’s external auditor and acted in that role throughout FY24.

KPMG’s role is to provide an independent opinion that Suncorp’s financial reports are true, fair and comply with applicable accounting standards and regulations. KPMG also provides an independent opinion that Suncorp’s Remuneration Report complies with the Corporations Act.

The Audit Committee meets regularly with KPMG without management being present.

KPMG’s lead audit partner attends each AGM to answer questions from shareholders regarding the conduct of its audit, its audit report and independence, and the accounting policies adopted by Suncorp in preparing its financial statements.

In support of KPMG’s independence for FY24, its declaration, together with details of non-audit services provided by KPMG during FY24, are included in the Directors’ Report, on page 53 and page 52 respectively.

Supporting declarations from management

In addition, and before the Board approves Suncorp’s half-year or full-year financial statements, it receives a declaration from the Group CEO, Group CFO and the Group Chief Risk Officer, that states:

Ά in their opinion:

the financial records of Suncorp have been properly maintained in accordance with the Corporations Act
the financial statements comply with applicable accounting standards and give a true and fair view of the financial position and performance of Suncorp
Ά the above statements are founded on sound systems of risk management and internal control and that the systems are operating effectively in all material respects in relation to financial reporting risks.

As the Group CFO is unavailable to provide this declaration for the FY24 full-year results having undergone a recent minor surgical procedure, it has been provided by the Acting Group CFO as delegate and who, in the Group CFO’s absence, is performing the chief financial officer function for the purpose of section 295A of the Corporations Act.

The above declaration is supported by a broader management certification process, where other senior executives provide attestations for their respective areas of responsibility.

Other periodic corporate reports

All Suncorp periodic corporate reports that are lodged with the ASX (including those that are not audited or reviewed by KPMG) are subject to a thorough management review, verification and approval process.

Risk management

Board oversight of Suncorp’s risk management framework

The Risk Committee:

Ά reviews an independent report on the appropriateness, effectiveness and adequacy of Suncorp’s ERMF at least every three years, including during FY24
Ά oversees regular internal reviews of Suncorp’s ERMF, including updates during FY24
Ά endorses for Board approval an annual declaration to APRA in relation to risk management, as required by APRA’s Prudential Standard CPS 220 Risk Management.

Further information about Suncorp’s approach to risk management, including the structure and objectives of the Internal Audit function, is provided in the risk management section on page 30.

Management of environmental and social risks and sustainability governance

The Board is responsible for approval of the sustainability strategy and policies to address ESG risks and opportunities for Suncorp. This includes new policy development, climate strategy, materiality assessments, key disclosures, and the setting of metrics and targets for non-financial performance reporting.

During FY24, the ESG topics considered by the Board included:

Ά progress toward development of a Climate Transition Plan, including Scope 3 target setting
Ά oversight of climate governance pathways
Ά endorsement of climate-related disclosure planning
Ά approval of Suncorp’s Human Rights Statement for public disclosure
Ά approval of Suncorp’s FY23 Modern Slavery Statement
Ά oversight of Suncorp’s refreshed Innovate Reconciliation Action Plan
Ά approval of non-financial ESG targets for FY25 and updates to the full suite of non-financial metrics.

Further detail on Suncorp’s approach to climate governance is outlined in the 2023-24 Climate-related Disclosure Report.

Further information about Suncorp’s sustainability initiatives, including performance against our targets, is provided in the How we create value section of this report, our Climate-related Disclosure Report and the FY24 Sustainability Data Pack.

Learn more[1]

Suncorp’s Disclosure Committee reviews the content of all material documents for lodgement with the ASX. The Disclosure Committee in turn relies on a verification process that involves the relevant senior management confirming that the disclosure is accurate, not misleading and is supported by appropriate source documents or personal knowledge and expertise. The verification process for this report (including this Statement) is overseen by a specific management steering committee.

suncorpgroup.com.au/corporate-responsibility

FY24 Annual Report 41

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Remunerating fairly and responsibly

Board oversight of Suncorp’s remuneration framework

As set out in the Board Committee composition and responsibilities section of this Statement, the People and Remuneration Committee’s role includes assisting the Board in ensuring that Suncorp’s remuneration framework:

Ά is fair, transparent and responsible
Ά reinforces executive accountability, as expected by our shareholders, customers, employees and the wider community
Ά maintains an ongoing focus on the attraction, motivation and retention of key talent to deliver for our shareholders, customers and our people, taking into account the competition for skills and expertise, and talent shortages, across the financial services industry and more broadly.

Further information about Suncorp’s remuneration framework, including our policies and practices for remunerating directors and senior executives, and evaluating the performance of executives, is provided in the Remuneration Report on page 54.

Fostering diversity and inclusion

At Suncorp we recognise that each of our employees has a unique experience of intersectional identities, which may include identifying with groups that have been historically marginalised or discriminated against. We therefore place a high priority on diversity, equity and inclusion initiatives and interventions, which includes embedding systems and processes that help to remove bias and ensure a more equitable experience for all staff, regardless of their diverse identities, experiences and requirements. The Suncorp Diversity and Inclusion Policy is available in the Governance & policies section of our website.

Learn more[1]

Gender diversity

Suncorp’s commitment to gender equality is reflected in Suncorp’s progress towards our gender equality goals.

Suncorp has complied with our 2024 reporting obligations under the Workplace Gender Equality Act.

Learn more[2]

suncorpgroup.com.au/about/corporate-governance
suncorpgroup.com.au/uploads/Suncorp-Group-WGEA-Questionnaire-2024.pdf

42 FY24 Annual Report

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Directors’ report

The directors present their report together with the financial report of the Suncorp Group (the Suncorp Group, Suncorp or Group), being Suncorp Group Limited (SGL, the Company) and its subsidiaries, for the financial year ended 30 June 2024 (FY24) and the auditor’s report thereon.

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Christine McLoughlin, AM BA, LLB (Hons), FAICD Non-executive Chairman

Christine McLoughlin, AM has been a director of the Suncorp Group since 2015 and Chairman since September 2018. She is Chairman of the Nomination Committee and an ex-officio member of the Audit, Customer, People and Remuneration, and Risk Committees.

Christine’s extensive experience as a director spans boards of ASX Top 50 companies in the financial services, resources, health, medical devices and infrastructure sectors over the past 15 years.

Her executive career was in leadership roles in financial services and telecommunications sectors in ASX Top 20 companies with businesses in the Australian, UK and Southeast Asian markets. Christine continues to take a proactive interest in technology and climate change with a focus on the impact on customers, creating value for shareholders and the broader economy. She is also a non-executive director of ASX listed Cochlear Limited (since November 2020) and Co-Founder and Chairman of the Minerva Network, a not-for-profit supporting professional athletes.

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Steve Johnston
BBus (Mgt), BBus (Public Administration)
Group Chief Executive Officer and Managing Director
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Steve Johnston was appointed Group Chief Executive Officer (Group CEO) of Suncorp and Managing Director in September 2019.

Steve joined Suncorp in 2006 and has held various executive positions. Prior to his appointment, Steve was the Group Chief Financial Officer (CFO) with responsibility for financial reporting and management, legal and company secretariat, taxation, investor relations, corporate affairs and sustainability. Steve’s previous roles include Deputy CFO and Executive General Manager Investor Relations and Corporate Affairs. Prior to joining Suncorp, Steve held senior positions at Telstra and the Queensland Government.

Steve is also a Director of the Insurance Council of Australia.

Christine was previously the Chancellor of the University of Wollongong, the elected Australian private sector representative to the G20 EMPOWER Council and inaugural Chairman of the Australian Payments Council.

In June 2021, Christine was awarded a Member of the Order of Australia in the Queen’s Birthday Honours for her services to business, the not-for-profit sector, and women.

Annual Report 2023-24 43

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

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Gillian Brown LLB (Hons) Grad Dip Applied Finance and Investment Non-executive director

Gillian Brown was appointed a director of Suncorp Group in February 2024 and is a member of the Audit and Customer Committees.

With a career spanning nearly 40 years, Gillian brings to Suncorp broad skills in financial services law, infrastructure, investments, and finance. Gillian has extensive experience in environmental, social and governance (ESG) initiatives and complex corporate transactions, including mergers and acquisitions, business restructures and disposals and public private partnerships, strategy and risk allocation and workplace health and safety.

In addition to her role at Suncorp, Gillian holds non-executive director positions with the High Speed Rail Authority, Electricity Retained Interest Corporation Ausgrid (ERIC-A) and group entities, QIC Limited, BRIC Housing Limited and Queensland Community Foundation. Her previous board roles include serving as Chairman of Minter Ellison lawyers and as a director of Queensland Treasury Corporation and DBCT Holdings Pty Ltd, a Queensland Government owned lessor of Dalrymple Bay coal export terminal in Mackay. Gillian is also a former director of Australian Rail Track Corporation Limited (ARTC), the owner and operator of Australia’s largest rail freight network.

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Sylvia Falzon
MIR (Hons), BBus, FAICD, SFFin
Non-executive director
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Sylvia Falzon has been a director of the Group since September 2018. She is Chairman of the People and Remuneration Committee and a member of the Risk Committee.

Sylvia has held senior positions within the financial services sector having worked for major life insurance and asset management organisations over a 30-year career. Through her executive career and now as a non-executive director, she has gained valuable insights working in large consumer-facing and highly regulated businesses within the financial services, healthcare, retail and aged care sectors.

Sylvia is a non-executive director of listed company Premier Investments (since March 2018). Sylvia is also Chairman of the Governing Board of Cabrini Australia Limited, a diversified not-forprofit, health and technology care provider, and a member of the Australian Government Takeovers Panel.

Sylvia was previously a non-executive director of listed companies Perpetual Limited and Regis Healthcare (September 2014 – October 2021), and de-listed company Zebit Inc (August 2020 – March 2022). Sylvia held senior executive roles with Aviva Investors Australia (a wholly owned subsidiary of global insurer Aviva plc), Alpha Investment Management, and major life insurer National Mutual/AXA.

Throughout her career, Gillian has held appointments as Chair of Audit and Risk Committees and member of Environment, Health and Safety Committees.

44 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

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Elmer Funke Kupper BBA, MBA

Non-executive director

Elmer Funke Kupper has been a director of the Group since January 2020. He is a member of the Audit and People and Remuneration Committees.

Elmer is a respected business leader and company director. He has significant financial services experience and has served as Chief Executive Officer of two listed companies. Elmer brings to Suncorp significant leadership experience in transforming business models through the adoption of technology and digital services. The companies he led offered their services through retail and wholesale technology platforms, supported by significant data and data analytics capabilities. He brings considerable experience in the management of technology programs and technology risk, including cyber security.

Elmer also brings experience in navigating demanding regulatory environments, and has worked closely with state and federal governments, regulators, customers and shareholders. Elmer was previously Managing Director and CEO of the Australian Securities Exchange (ASX Limited), and a director of the Business Council of Australia. Prior to that he was Managing Director and CEO of Tabcorp. He held senior executive positions at ANZ Bank over more than 10 years and was a member of its Management Board. He started his career as a management consultant with McKinsey & Company.

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Ian Hammond BA (Hons), FCA, FCPA, FAICD Non-executive director

Ian Hammond has been a director of the Group since October 2018. He is Chairman of the Audit Committee, and a member of the Risk Committee.

Ian brings to Suncorp extensive knowledge of the financial services industry, and expertise in financial reporting and risk management. He has deep experience across the insurance, banking, wealth management and property sectors, and a keen interest in digital and technology trends.

Ian is a non-executive director of listed company Perpetual Limited (since March 2015) where his board roles include Chairman of the Audit, Risk and Compliance Committee. He is also Chairman of Mission Australia.

Previously Ian was a non-executive director of Citigroup Pty Limited and Venues NSW. Ian spent more than 35 years at PwC, including 26 years as a partner. He was lead partner for several of Australia’s major financial institutions and was previously a member of the Australian Accounting Standards Board and the International Accounting Standards Board.

Elmer is currently a non-executive director of MYOB Group Co Pty Ltd, the Australian holding company of the MYOB Group.

Annual Report 2023-24 45

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

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Simon Machell BA (Hons), FCA Non-executive director

Simon Machell has been a director of the Group since April 2017. He is a member of the Customer and People and Remuneration Committees.

Simon is a non-executive director of Prudential Assurance Company Singapore. He is also Chairman of the Pacific Life Re Limited Australian entity board, and a director of its Bermuda entity boards. As a non-executive director of Tesco Bank and Chairman of Tesco Underwriting in the UK, Simon has considerable insight into changing customer expectations and engaging customers through digital channels.

Simon brings to Suncorp an international perspective on current industry trends in insurance, and insights into the risks and opportunities associated with emerging technologies and new business models. He has deep operational and strategic knowledge of the insurance industry and has planned and delivered significant change programs. In his executive career, Simon spent 10 years in CEO roles at Norwich Union / Aviva and has extensive skills in day to day management of an insurance business. He has expertise in claims management, sales and finance and gained his experience in Asia Pacific and Europe. This domain knowledge allows him to both support and challenge management on all insurance related matters. Simon’s other insurance related roles outside of Australia ensure that the Suncorp approach remains globally competitive and best in class.

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Sally Herman, OAM BA, GAICD Non-executive director

Sally Herman has been a director of the Group since October 2015. She is Chairman of the Customer Committee and a member of the Risk Committee.

Sally brings to Suncorp strong expertise in running retail banking and insurance products, setting strategy for financial services businesses, and working with customers, shareholders, regulators and government. She has deep executive experience running customer facing financial services businesses in Australia and the United States of America. She has held board positions (including on subsidiary boards) of financial services organisations for over 20 years, with a focus on governance, regulation and compliance. Sally’s current listed company directorships include Breville Group Limited (since March 2013) and Premier Investments Limited (since December 2011). She is also a director of Abacus Property Group. Sally was previously a director of listed company E & P Financial Group Limited (May 2018 – November 2021) and a director of Irongate Funds Management Limited, responsible entity of listed trust Investec Australia Property Fund (July 2013 – July 2022).

During her senior executive career at Westpac, Sally oversaw stakeholder engagement including customers, shareholders, government and regulators. Her Westpac experience also included running the product function of retail and business banking, including general insurance and internet banking.

46 Annual Report 2023-24

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FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

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Lindsay Tanner BA (Hons), LLB (Hons), MA (Melb) Non-executive director

Lindsay Tanner has been a director of the Group since January 2018. He is a member of the Risk Committee and is also a director of Suncorp’s New Zealand licensed entities. Lindsay brings to Suncorp an acute appreciation of the technological, regulatory and political changes shaping the financial services industry. He has worked at the highest levels of government and business for over 35 years, including as Minister for Finance and Deregulation from 2007 to 2010, where he played a significant role in regulatory reform in the financial services sector. He also served as Minister for the Future Fund during the Global Financial Crisis.

Lindsay is currently Chairman of AFL Victoria, and a director of Industry Super Holdings Pty Ltd, IFM Investors Pty Ltd and the Future Skills Organisation.

Lindsay is a recognised authority on corporate governance and was a Special Adviser for financial advisory firm Lazard Australia for more than 10 years, where he had extensive involvement in the financial sector and with mergers and acquisitions.

Lindsay was also previously Chairman of Certane Group Pty Ltd and a non-executive director of Covata Limited and Lifebroker, the life insurance broking company. He began his professional career as a lawyer representing consumers in disputed personal injury and motor insurance claims.

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Duncan West BSc (Econ) (Hons), ANZIIF (Snr Assoc), CIP, FCII (UK), GAICD Non-executive director

Duncan West has been a director of the Group since September 2021. He is Chairman of the Risk Committee and a member of the Audit Committee.

Duncan is a highly experienced company director with 40 years of experience in the general insurance and financial services sectors, in both director and senior executive roles, in Australia and overseas. His financial services expertise spans general and life insurance, banking and wealth management.

Duncan is Chairman of listed company Challenger Limited (since October 2022) and a non-executive director of listed company Helia Group Ltd (since September 2018). He is also a director of Avant Mutual Group Limited (Australia’s largest medical indemnity insurer) and Chairman of Habitat for Humanity Australia.

Duncan was previously Chairman and a director of The Hollard Insurance Company Pty Limited and Lawcover Insurance Pty Limited.

Duncan’s previous executive roles include CEO of Vero Insurance, CEO of CGU Insurance, and Executive General Manager of Insurance for NAB Wealth and MLC. He also previously worked with Royal Sun Alliance in its UK and Indian operations and is a past President of the Australia and New Zealand Institute of Insurance and Finance.

Doug McTaggart BEcon (Hons), MA, PhD, DUniv, FAICD, SFFin

Doug McTaggart retired from the Board in December 2023. Mr McTaggart had been a non-executive director of the Group since April 2012.

Annual Report 2023-24 47

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Directors’ meetings

The number of directors’ meetings (including meetings of committees of directors) and number of meetings attended by each director (or former director) of the Company during the financial year ended 30 June 2024 are set out in the table below.

	Board of Directors Audit Committee Risk Committee People and Remuneration Committee Customer Committee Nomination Committee
	A B A B A B A B A B A B
C McLoughlin S Johnston1 G Brown S Falzon E Funke Kupper I Hammond S Herman S Machell Dr D McTaggart L Tanner D West	18 18 6 6 7 7 6 6 2 2 2 2 18 18 6 6 7 7 6 5 3 2 2 2 6 6 1 1 - - - - 2 2 1 1 18 18 - - 7 6 6 6 - - 2 2 18 18 6 6 - - 6 6 - - 2 2 18 18 6 6 7 7 - - - - 2 2 18 18 - - 7 7 - - 3 3 2 2 18 18 5 5 - - 6 6 1 1 2 2 9 9 - - - - - - 1 1 1 1 18 18 - - 7 7 - - 1 1 2 2 18 18 6 6 7 7 - - - - 2 2

A. Number of meetings held during the year while the director was a member of the Board or Committee.
B. Number of meetings attended by the director during the year while the director was a member of the Board or Committee.
All non-executive Directors are members of the Nomination Committee.
The Group CEO and Managing Director attends Audit Committee, Risk Committee, Nomination Committee, People Remuneration Committee and Customer Committee meetings at the invitation of those committees. There are no management representatives appointed as members of any Board Committee.

Directors’ interests as at 30 June 2024

The Directors’ interests as at 30 June 2024 can be found in the Remuneration Report on page 54.

Performance rights and share rights

As at 30 June 2024, there are 1,457,390 performance rights and 2,400,856 share rights outstanding in relation to Suncorp’s fully paid ordinary shares. No exercise price is payable for performance rights or share rights. The latest dates for exercise of the performance rights and share rights range between 1 July 2022 and 30 June 2025.

Persons holding performance rights and share rights are not entitled to participate in capital actions by Suncorp (such as rights issues or bonus issues). For the period from 30 June 2024 to 19 August 2024, no fully paid Suncorp ordinary shares were issued as a result of the exercise of a performance right or a share right. For further details on performance and share rights refer to note 30 Share-based payments of the consolidated financial statements on page 133 and the Remuneration Report on page 54.

Company secretaries

Darren Solomon, LLB was appointed Company Secretary in March 2010, having joined Suncorp in 1989 as a senior lawyer in the legal department before moving to Company Secretariat in 2006.

Cassandra Hamlin, BCom, CA, FGIA, Grad Dip (GIA) was appointed Company Secretary in August 2022. She joined Suncorp’s Company Secretariat team in 2019 and was previously Group Company Secretary of Qantas and a Senior Company Secretary at AMP. Cassandra completed LLB studies in 2024 (currently awaiting conferral).

Principal activities

The principal activities of the Suncorp Group during FY24 were the provision of insurance and banking products and services to retail, corporate and commercial customers in Australia and New Zealand. There were no significant changes in the nature of the Suncorp Group’s activities during FY24, other than as set out in the ‘Significant changes in Suncorp Group’s state of affairs’ section below. More detail on the Group’s activities is included in the How we create value and Financial performance sections on pages 10 to 31.

Dividends

A fully franked FY23 final ordinary dividend of $342 million (27 cents per share) was paid on 25 September 2023.

A fully franked FY24 interim ordinary dividend of $432 million (34 cents per share) was paid on 11 April 2024. The directors determined a fully franked FY24 final ordinary dividend of $560 million (44 cents per share).

Further details of dividends on ordinary shares provided for or paid are set out in note 14 to the consolidated financial statements.

Operating and Financial Review

The operating and financial review can be found in the ‘How We Create Value’ section on pages 18 to 41 and Financial Performance section on pages 12 to 17.

Remuneration report

The Remuneration Report can be found on page 54 and forms part of the FY24 Directors’ Report.

48 Annual Report 2023-24

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FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Significant changes in Suncorp Group’s state of affairs

Sale of Suncorp Bank

On 18 July 2022, following a comprehensive strategic review, the Group announced it had signed a share sale and purchase agreement (SPA) with Australia and New Zealand Banking Group Limited (ANZ) to sell Suncorp Bank. The transaction received approvals from the Australian Competition Tribunal on 20 February 2024 and the Federal Treasurer under the Financial Sector (Shareholdings) Act on 28 June 2024. The Queensland Government also passed legislation in June 2024 to amend the State Financial Institutions and Metway Merger Act (Metway Merger Act), with an effective proclamation upon completion of sale.

The sale of Suncorp Bank to ANZ completed subsequent to end of financial year on 31 July 2024. In accordance with the signed SPA with ANZ, a cash consideration of $6,247 million was paid on 31 July 2024, including a payment of $1,170 million for the internal loan notes issued by Suncorp Bank to Suncorp Group pre-completion. The completion payment is subject to customary adjustments, which are expected to be finalised in the half-year ending 31 December 2024. The transaction is anticipated to result in net proceeds of around $4,100 million and an accounting gain of $235 million to be recognised in the half-year ending 31 December 2024.

Group outlook

Growth: GWP growth is expected to be in the mid to high single digits, primarily driven by increases in AWP albeit with moderating premium rates, as the reinsurance market stabilises and inflationary pressures ease slightly in some portfolios.

Underlying ITR: The Group’s underlying ITR is supported by the continued earn through of elevated premium rates as inflation begins to moderate. Investment yields are expected to reduce as market expectations for interest rates decline in anticipation of a stabilisation in inflation. For FY25, prior year reserve releases in CTP are expected to be around 0.4% of Group net insurance revenue, with releases in other portfolios expected to be neutral over the year. An UITR towards the top of the 10% to 12% range is targeted.

Operating expenses: Expense ratios are expected to be broadly flat including the investment required to support strategic investments and continue to grow the business.

Capital: The Group will maintain its disciplined approach to active capital management, with a payout ratio at the mid-point of the 60% to 80% range.

Strategic targets: The Group is focused on delivering a growing business with a sustainable return on equity above the through-thecycle cost of equity.

Sale of Asteron Life

On 4 April 2024, the Group announced it had signed a SPA with Resolution Life NOHC, Resolution Life Group’s holding company in Australia and New Zealand (Resolution Life) to sell its New Zealand life insurance business, Asteron Life Limited (Asteron Life) for a cash consideration of NZ$410 million.

The sale is subject to regulatory approval from the Reserve Bank of New Zealand (RBNZ) and the sale is expected to be complete around the end of January 2025.

Event subsequent to reporting date

The sale of Suncorp Bank to ANZ was completed subsequent to end of financial year on 31 July 2024. In accordance with the signed SPA with ANZ, a cash consideration of $6,247 million was paid on 31 July 2024, including a payment of $1,170 million for the internal loan notes issued by Suncorp Bank to Suncorp Group pre-Completion. The completion payment is subject to customary adjustments, which are expected to be finalised in the half-year ending 31 December 2024. The transaction is anticipated to result in net proceeds of around $4,100 million and an accounting gain of $235 million to be recognised in the half-year ending 31 December 2024.

In the directors’ opinion, between the end of the financial year and the date of this report, no other transaction or event of a material and unusual nature has arisen to significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Company in future financial years.

Annual Report 2023-24 49

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Key strategic risks

The effective identification and management of strategic risks is integral to Suncorp’s strategy and decision-making process. Further detail on strategic risks is contained in the risk management section on page 30.

Impacts of legislation and other external requirements

Suncorp operates across a number of highly regulated industry sectors. There have been, and continue to be, significant domestic and global legislative and regulatory reforms and proposals, as well as numerous government and regulator consultations, reviews and inquiries which may result in changes that may impact Suncorp Group and its operations in Australia and New Zealand.

There are also various proposals and changes from global regulatory advisory and standard-setting bodies such as the International Association of Insurance Supervisors and the International Organisation of Securities Commissions which, if adopted or followed by domestic regulators, may increase operational and capital costs or requirements.

Suncorp is committed to embracing these regulatory changes and is well placed to respond. Suncorp is taking active steps to implement the changes with a number of improvements already in place. Suncorp is engaging with regulators, the government and industry bodies to provide feedback and guide the policy direction. Suncorp Group and its insurance businesses in Australia and New Zealand are set out below.

Matters which may impact

Suncorp Group

Ά The Financial Accountability Regime (FAR) replacing the Banking Executive Accountability Regime (BEAR) from March 2024 and applying from March 2025 for General Insurers.
Ά The Suncorp Group has completed its remediation following the review into pay and leave entitlements in Australia. Remediation payments to all impacted employees were finalised in August 2022. In June 2023, Suncorp concluded an Enforceable Undertaking (EU) with the Fair Work Ombudsman (FWO), which is available on the FWO website. Key terms of the EU include that Suncorp make a $520,000 contrition payment to the Commonwealth consolidated revenue fund, and that Suncorp conduct two external and independent pay and leave audits in 2023 and 2024. The first audit is now complete, and preparations for the second audit are underway. Suncorp also continues to invest in a range of systems enhancements.

with a right to efficiently and conveniently access specified data in relation to them held by businesses.

Ά APRA’s prudential standards (CPS 190 and CPS 900) on recovery and exit planning and resolution planning which strengthen crisis preparedness, and came into effect on 1 January 2024.
Ά Increasing expectations from each of APRA and ASIC relating to climate-change risk management and disclosure, along with potential changes proposed by the Australian Accounting Standards Board on disclosure of climate-related information within general financial reporting by companies. The latter is currently under consultation, the outcomes of which remain uncertain.
Ά Continued monitoring by APRA of the enhanced obligations for remuneration frameworks, practices, and disclosures (CPS 511 & FAR).
Ά APRA’s review of CPS 510 Governance, entailing expectations of boards, which may result in revisions to requirements in 2024.
Ά APRA’s continuing focus on risk culture, including conducting risk culture surveys to benchmark perceived risk behaviours and the effectiveness of risk structures within entities.
Ά Future legislation resulting from the Quality of Advice Review recommendations, into the accessibility and affordability of quality advice, and particularly how banks and general insurers engage with their customers. The Commonwealth Government provided their final response to the review in December 2023 and the introduction of the Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Bill 2024, which seeks to implement half of the Review recommendations. Further consultation steps will occur on the remaining recommendations.
Ά Amendments to the Privacy Act 1988 (Cth), following a review and the Commonwealth Government’s response in September 2023, likely to result in enhanced transparency and consent obligations, use of personal information needing to be fair and reasonable, new individual data subject rights, and requirements for privacy impact assessments. The full outcome of future amendments remains uncertain. Additionally, penalties have already been substantially increased for a serious or repeated breach of privacy as per the Privacy Legislation Amendment (Enforcement and Other Measures) Act 2022.
Ά Suncorp Group is currently, and has previously been, subject to other specific regulator activities (including reviews, information requests, investigations, and assistance with inquiries) across its insurance businesses. This is due to the company’s diverse offering of financial services products and breadth of operations. It is expected that Suncorp will be involved in a variety of supervisory activities of regulators in future.
Ά Commencement of substantial changes to obligations on operational risk management and resilience from 1 July 2025 (CPS 230), including for critical operations, business continuity management, and provision of services by external providers.
Ά Sustained attention from APRA on cyber security and resilience as per CPS 234 requirements.
Ά ASIC administering its product intervention power, which allows ASIC to temporarily intervene, including to ban financial products when there is a risk of significant consumer detriment.
Ά ASIC supervising financial product Design and Distribution Obligations (DDO), which require financial product firms to develop products that meet the needs of the consumers in their intended target market.
Ά Consumer Data Rights which provides individuals and businesses

50 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Insurance Operations Australia

Ά ASIC’s ongoing focus into complaints handling and associated resourcing, and more specifically, compliance with enforceable paragraphs within Regulatory Guide 271 Internal Dispute Resolution. Along with other industry participants, Suncorp has been subject to end-to-end surveillance of its complaints handling practices.
Ά Potential new regulatory reforms such as significantly increased data collections, due to the ongoing work across governments of all levels, as well as regulatory agencies such as APRA, ACCC and ASIC, to address the broad issues of availability, affordability and sustainability of general insurance. This includes the modernisation of prudential architecture by APRA with the goal of making data collection clearer, simpler and more adaptable for institutions. The complexity of these changes adds uncertainty to changes which might be needed to Suncorp’s operations.
Ά Oversight by APRA and embeddedness of AASB 17 Insurance Contracts, the accounting standard which requires new measurement models to be applied and introduced significant changes to the presentation and disclosure of insurance contracts.
Ά The ACCC monitoring of the Cyclone Reinsurance Pool (CRP) effectiveness, and compliance by participants including Suncorp. The ACCC continues to consider insurance prices, costs and profits before and after the introduction of the CRP, and ensure savings are passed through to customers. Suncorp has responded to the ACCC with policy, claims and financial data, and pricing information relating to the relevant insurance products. The ACCC’s second annual report was released in December 2023, noting the full effect of the CRP is yet to be realised. The outcomes of these activities remain uncertain.
Ά Supervision by ASIC of claims handling practices, with assistance from Suncorp on areas of interest.
Ά Further administration by ASIC of the unfair contract terms legislation for insurance. New reforms commenced on 10 November 2023 and included larger penalties and remedies available, an augmented definition of small business, and a new breach provision.
Ά Reserve Bank of New Zealand is reviewing the Insurance (Prudential Supervision) Act 2010 (IPSA) and Solvency Standards. An interim solvency standard which takes into account IFRS 17 changes came into effect in January 2023 and is expected to be amended effective from March 2025. An exposure draft of the IPSA Amendment Bill is expected for consultation in the second half of 2025. Proposals being considered include empowering the Reserve Bank to issue standards for outsourcing and connected exposures and concentrated exposures for subsidiaries of an overseas parent group.
Ά Financial Sector (Climate-related Disclosure and Other Matters) Amendment Act 2021 requires mandatory climate-related financial disclosures for certain entities including large insurers. Disclosures apply to accounting periods starting on or after 1 January 2023.
Ά The Natural Hazards Insurance Act 2023 comes into force on 1 July 2024 and will replace the current Earthquake Commission Act 1993. The Act aims to reduce the impact of natural hazards on the community by contributing to improving resilience and uptake of insurance, as well as clarifying the nature and extent of cover provided.
Ά The Fire and Emergency New Zealand levy is increasing by 12.8% across all levied insurance policies for the 2024/25 and 2025/26 financial years, taking effect from 1 July 2024. Government is to make further decisions on levy changes by end of 2024 with changes coming into effect on 1 July 2026.

Environmental reporting

Suncorp conducts business in a way which sustains and protects the environment for both current and future generations. Through transparent environmental performance reporting and target setting we have continued to reduce our environmental impact over the past year. For more information, please refer to the Climent and environment approach section on page 27 and our FY24 Sustainability Data Pack.

Ά Expected recommendations for new legislative reforms which may impact our insurance business, emanating from the House of Representatives Standing Committee on Economics Inquiry into Insurers’ responses to 2022 major floods claims. The Inquiry will also consider findings from Deloittes’s external review of Insurers’ responses to the 2022 floods and ASIC’s claims handling review. The Committee report is anticipated on 30 September 2024.

Insurance Operations New Zealand

Ά Financial Markets (Conduct of Institutions) Amendment Act 2022 requires insurers, banks and non-bank deposit takers be licensed and have a fair conduct program to ensure consumers are treated fairly. Licence applications opened on 25 July 2023 and the Act will come into force on 31 March 2025.
Ά The Contracts of Insurance Bill has been introduced to Parliament to modernise insurance contracts law and addresses a number of areas including disclosure, unfair contract terms and several technical issues. The Bill is expected to be passed by the end of 2024 and there may be up to three years for implementation.

Annual Report 2023-24 51

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Non-audit services

During the year, KPMG, the Company’s auditor, performed certain services in addition to the audit and review of the financial statements. The Board has considered the non-audit services provided during the financial year by the auditor and, having received the appropriate confirmations from the Audit Committee, is satisfied the auditor’s provision of those non-audit services is compatible with, and did not compromise, the auditor independence requirements of the Corporations Act 2001 for the following reasons:

Ά the non-audit services provided do not undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants, as they did not involve reviewing or auditing the auditor’s own work, acting in a management or decision-making capacity for the Company, acting as an advocate for the Company or jointly sharing risks and rewards.

The amounts paid or due and payable to KPMG and its related practices for non-audit services provided during FY24 (and FY23 are set out below.

Services other than statutory audit

	FY24	FY23
	$000	$000
Audit-related fees (regulatory)
APRA reporting	782	752
Australian fnancial services licences	66	96
Other regulatory compliance services	1,001	1,157
	1,849	2,005
Audit-related fees (non-regulatory)
Other assurance services1	853	1,063

Other services
Other non-audit related services2	259	115
	2,961	3,183

Other assurance services are assurance services other than regulatory assurance services and primarily relate to services for emissions reporting review, Investor Pack review, and external peer reviews.
Other non-audit services include advisory services for loan capital issued by the Group and agreed upon procedure engagements.

Indemnification and insurance of officers and directors

Under rule 39 of the Company’s Constitution, the Company indemnifies each person who is or has been a director, secretary or officer of the Company (each an officer for the purposes of this section). The indemnity relates to liabilities to the fullest extent permitted by law to another party (other than the Company or a related body corporate) that may arise in connection with the performance of their duties to the Company and its subsidiaries, except where the liability arises out of conduct involving a lack of good faith.

The Constitution stipulates the Company will meet the full amount of such liabilities, including costs and expenses incurred in defending civil or criminal proceedings or in connection with an application, in relation to such proceedings, in which relief is granted under the Corporations Act.

The Company has also executed deeds of access, indemnity and insurance with each officer of the Company’s subsidiaries, and deeds of indemnity and insurance with the officers of related bodies corporate and joint venture companies. Those deeds, which are subject to certain conditions and limitations, provide an indemnity to the full extent permitted by law for liabilities incurred by that person as an officer, including reasonable legal costs incurred in respect of certain legal proceedings and an entitlement to directors’ and officers’ liability insurance. The deeds containing access rights provide access to company records following the cessation of the officer’s position with the relevant company.

During FY24 the Company paid insurance premiums in respect of a directors’ and officers’ liability insurance contract. The contract insures each person who is or has been an officer of the Company against certain liabilities arising in the course of their duties to the Company and its subsidiaries. The directors have not included details of the nature of the liabilities covered by or the amount of the total premium paid in respect of the insurance contract as such disclosure is prohibited under the terms of the contract.

Lead Auditor’s Independence Declaration

The Lead Auditor’s Independence Declaration can be found on page 53.

Rounding of amounts

As the Company is of a kind referred to in Australian Securities and Investments Commission (ASIC) Corporations (Rounding in Financial/Directors’ report) Instrument 2016/191, all financial information presented in the Directors’ Report and the consolidated financial statements have been rounded to the nearest million dollars, unless otherwise stated.

52 Annual Report 2023-24

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FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Lead Auditor’s Independence Declaration

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Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001

To the Directors of Suncorp Group Limited

I declare that, to the best of my knowledge and belief, in relation to the audit of Suncorp Group Limited for the financial year ended 30 June 2024 there have been:

i. no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and

ii. no contraventions of any applicable code of professional conduct in relation to the audit.

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==> picture [60 x 30] intentionally omitted <==

KPMG Scott Guse

Partner

Brisbane

19 August 2024

KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation.

Annual Report 2023-24 53

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Remuneration report

1.	Executive remuneration overview	57
2.	Executive remuneration structure	61
3.	Remuneration governance, risk and
	consequences	67
4.	Executive remuneration outcomes	70
5.	Non-executive director fees	74
6.	Contractual arrangements
	and statutory remuneration	75

Letter from the Chairman of the Board People and Remuneration Committee

On behalf of the Board, I am pleased to present the 2024 Remuneration Report.

In FY24 we continued to progress the delivery of our People Strategy in support of our ambition to be the leading Trans-Tasman insurer. We also focused on ensuring our people are equipped for a changing way of work with significant investment in learning and development. This saw us continuing our Reskill program which targets people who work in areas likely to be disrupted and gives them the opportunity to be reskilled in capabilities needed in the future.

We recognise the dedication and commitment of our people and the continued high level of employee engagement underpinning our customer obsession culture.

Performance outcomes

Group performance is assessed in a balanced way against both financial and non-financial measures. Both Adjusted Net Profit After Tax (Adjusted NPAT) and Cash Return on Tangible Equity (Cash RoTE) were above FY23 performance levels. Adjusted NPAT was solid at $1,121 million, however was slightly below target in the Short-Term Incentive (STI) Group Scorecard. Cash RoTE was 16.0% and was above target. Total shareholder return was strong over FY24 with Suncorp delivering a 35% return to shareholders, compared to the S&P / ASX 100 of 12% and the S&P / ASX 100 Financials of 29%[1] .

Suncorp performed well against its people and culture measures. As measured by Workday Peakon Employee Voice[2] , employee engagement is in the top 25% of the Finance industry. This is a pleasing result given the protracted uncertainty around the Suncorp Bank sale to ANZ during the year. Progress and focus are continuing in relation to our workforce for the future as well as reducing our Gender Pay Gap.

Customer outcomes were mixed. Suncorp Bank Main Financial Institution NPS (Consumer) was at target, however the NPS measures across our Consumer Insurance portfolios in Australia and New Zealand were below target.

Despite the Group’s continued improvement in its risk and compliance maturity, building a moderate risk environment and enhancing controls, the overall risk outcome was below target. See section 4 of this report for further information on the STI outcomes.

Source: Deloitte Touche Tohmatsu.
Workday Peakon Employee Voice is a product of Workday, an independent company and separate entity to Suncorp.

54 Annual Report 2023-24

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FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Remuneration outcomes

There was no increase in the Group CEO’s fixed pay over FY24 and the average increase in fixed pay for the other executives was 3%. The Group CEO’s STI opportunity for FY24 was 120% of target ($2.484 million) including an additional one-off 20% STI opportunity related to the successful execution of the Bank Transition Program. Following the Board’s performance assessment, the Group CEO’s FY24 STI outcome was $2,028,600. This consisted of 78% relating to overall FY24 performance and 20% related to the Bank Transition Program, being a total of 98% out of the 120% STI opportunity or 82% overall.

The FY24 STI outcomes for the other executives ranged between 50%-82% of target based on business performance. The other executives were also eligible to receive the additional one-off 20% STI opportunity in relation to the successful execution of the Bank Transition Program and the STI outcomes against this measure ranged between 0% and 20% depending upon their individual contribution. Combined, the STI outcome range for the other executives was between 42% and 83% of target inclusive of the additional STI opportunity.

As foreshadowed in the 2023 Remuneration Report, due to the complexities with the expected separation of Suncorp Bank, the FY22 Long-Term Incentive (LTI) performance rights were tested early at 30 June 2022 and 55.5% of the rights met the performance measures at that time. These rights vested and an additional one year holding lock was imposed to incentivise executive stability until 30 June 2025. While the vesting outcomes would have been 27.8% higher at 83.3% if these rights were tested in the normal course at 30 June 2024, the Board upheld the original vesting level of 55.5%.

Any changes to the remuneration structure will continue to comply with all regulatory requirements.

Non-executive director fees (excluding the legislated increases in the superannuation guarantee contribution) will not be increased. However, shareholder approval will be sought at the 2024 Annual General Meeting (AGM) to increase the aggregate amount of the non-executive director fee pool from $3.5 million to $4.0 million.

The last increase in the fee pool was approved by shareholders 17 years ago at the Company’s 2007 Extraordinary General Meeting. Given the average non-executive director tenure post AGM will be 6 years, this increase in the fee pool will provide the necessary flexibility to continue to facilitate Board renewal and Board and Committee composition changes in an orderly manner. Particularly, this flexibility will enable the Board to continue its renewal process to ensure it has the appropriate composition to meet the needs of the business as a leading Trans-Tasman insurer underpinned by technology and transformation capability.

Thank you for the opportunity to present our 2024 Remuneration Report. We value our ongoing engagement with our shareholders and other stakeholders, and we look forward to your feedback ahead of our AGM.

Sylvia Falzon

Chairman of the People and Remuneration Committee 19 August 2024

Also included in the 2023 Remuneration Report were the changes made to the executive remuneration framework in FY24 to ensure compliance with APRA’s Remuneration Prudential Standard (CPS 511). These included changes in the Group CEO’s remuneration mix and the incorporation of non-financial measures into the LTI plan. See section 2 of this report for further information.

Looking ahead to FY25

The Board increased the Group CEO’s fixed pay by 3.5% for FY25 in light of his strong capability and market remuneration levels.

As the Suncorp Bank sale did not complete until early FY25, minimal changes have been made to the executive remuneration structure in FY25. The key change is the LTI performance period will be extended from three years to four years to create alignment between executive reward outcomes and the shareholder experience over a longer period. LTI deferral continues beyond this, with the total Group CEO LTI deferral period being over 4-6 years and the total LTI deferral period for other executives being over 4-5 years, ensuring compliance with CPS 511. It is also worth noting from a regulatory perspective the Board and management will be regulated by the Financial Accountability Regime which takes effect for our insurance business from 15 March 2025.

The Board intends to undertake a review of the existing variable remuneration structure for FY26. This is to ensure the structure best supports Suncorp’s strategy as a leading Trans-Tasman insurer as well as continuing to attract, reward and retain our people to successfully execute on our strategy.

Annual Report 2023-24 55

DIRECTORS' REPORT

OVERVIEW HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Executives covered in this report

This report covers the remuneration arrangements of Key Management Personnel (KMP). KMP are the people who have the authority and responsibility for planning, directing and controlling the activities of the Suncorp Group and includes the non-executive directors. For the purposes of this report, “executive”, refers to the Group Chief Executive Officer and Managing Director (Group CEO) and the Executive Leadership Team (Senior Executives). Unless otherwise indicated below, all non-executive directors and executives were KMP over all of FY24.

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Non-executive directors Position People and Remuneration Committee
Christine McLoughlin, AM Chairman Ex officio member
Gillian Brown Director from 27 February 2024 -
Sylvia Falzon Director Chairman
Elmer Funke Kupper Director Member
Ian Hammond Director -
Sally Herman, OAM Director -
Simon Machell Director Member
Lindsay Tanner Director -
Duncan West Director -
Former Non-executive directors
Douglas McTaggart Former Director, retired from the Board on 14 December 2023
Group CEO and Senior Executives
Steve Johnston Group CEO
Adam Bennett GE Technology & Operations (GE T&O) from 4 September 2023
Previously Chief Information Officer
Lisa Harrison CEO Consumer Insurance from 4 September 2023
Previously CEO Insurance Product & Portfolio
Jimmy Higgins CEO Suncorp New Zealand (CEO SNZ)
Bridget Messer Group Chief Risk Officer (Group CRO)
Michael Miller CEO Commercial & Personal Injury Insurance (CEO C&PI) from 4 September 2023
Jeremy Robson Group Chief Financial Officer (Group CFO)
Bruce Rush CEO Suncorp Bank from 4 December 2023
Mr Rush ceased employment on 31 July 2024 due to the sale of Suncorp Bank.
Belinda Speirs Group Executive Completion & Transition (GE C&T)
Fiona Thompson Group Executive People, Culture & Advocacy (GE PC&A)
Former Senior Executives
Paul Smeaton Former Chief Operating Officer (COO) – Insurance until 3 September 2023
Clive van Horen Former CEO Suncorp Bank until 3 December 2023
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56 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

1. Executive remuneration overview

Our Purpose

Building futures and protecting what matters

Our Being @ Suncorp behaviours

Doing the right thing

Caring for others

Being courageous

Our reward principles

Align to Suncorp’s Promote accountability, Reward fairly, Deliver high Attract and Purpose, strategy and the doing the right thing and competitively and performance retain talent shareholder experience effective risk management responsibly

Our remuneration structure[1]

Fixed pay

Ά Consists of base salary, superannuation (or KiwiSaver) and any salary sacrificed benefits.
Ά Reflects the role scope and individual’s capability and is set in the context of internal relativities and external market data.
Ά External market data is based on a comparator group of selected financial services companies in the S&P / ASX 100 (excluding Real Estate Investment Trusts (REITs)).

Short-term incentive (STI)

Long-term incentive (LTI)

Ά Rewards the achievement of Ά Rewards the creation of long-term Group, Function and individual sustainable shareholder value. performance over a 12-month Ά LTI opportunity of 150% of fixed pay for the period. Group CEO and 100% of fixed pay for most
Ά Standard target STI opportunity of Senior Executives. 100% for the Group CEO and most Ά Delivered as performance rights which are Senior Executives.[2] tested for performance after a three-year
Ά Delivered as a mix of cash and period (after a four-year period for the share rights. Share rights are FY25 award). deferred over a 1-2 year period: Ά There are four performance measures: • Group CEO: 50% cash and • Relative total shareholder return (TSR) 50% share rights against S&P / ASX 100 companies
• Most Senior Executives: 65% (35% weighting) cash and 35% share rights. • Relative TSR against 15 S&P / ASX 100 financial organisations that are domiciled
Ά Outcomes are based on a in Australia (35% weighting) scorecard of People & Culture, • Relative Suncorp Group Insurance Customer Customer, Risk and Financial NPS (Consumer AU) (20% weighting)
measures, also considering • Relative Trust and Reputation
demonstration of the Being @ (10% weighting).
Suncorp behaviours.
Ά Outcomes can be scaled down Ά Total LTI deferral period is 4-6 years for the (to nil) if there is not adherence Group CEO and 4-5 years for eligible to the Code of Conduct. Senior Executives.

Risk adjustment

Variable pay is subject to in-year adjustment, malus and clawback criteria if there have been any significant risk or conduct matters. This ensures that remuneration outcomes appropriately reflect risk performance. See section 3 for further detail.

Mandatory shareholding requirement

The Group CEO and most Senior Executives are required to hold Suncorp shares at least equivalent to 100% of fixed pay within four years following their appointment. See section 2 for further detail.

See section 2 for further detail.
For FY24, the target STI opportunity for the Group CEO and Senior Executives was increased by 20% on a one-off basis to achieve performance measures related to the successful execution of the Bank Transition Program. See section 2 for further detail.

Annual Report 2023-24 57

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

1. Executive remuneration overview [continued]

Remuneration mix[1]

The below diagram shows the strong emphasis placed on variable pay to ensure strong alignment between pay, performance and the shareholder experience. As seen, the Group CEO’s remuneration opportunity is the same at target and at maximum. This change was made in FY24 to enable compliance with the deferral requirements under APRA’s Remuneration Prudential Standard (CPS 511) through the LTI component.

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Target 29% 14% 14% 43%
Group CEO
Maximum 29% 14% 14% 43%
Most Senior Target 33% 22% 12% 33%
Executives [2]
Maximum 29% 27% 15% 29%
Fixed pay STI Opportunity - Cash STI Opportunity - Deferred Equity LTI Opportunity - Equity
Variable pay
----- End of picture text -----

The above remuneration mix reflects the standard remuneration mix for the Group CEO and Senior Executives. See section 2 for details on the additional one-off 20% STI opportunity that was provided related to the successful execution of the Bank Transition Program.
The CEO Suncorp Bank, GE C&T and Group CRO have a different remuneration mix. See section 2 for further detail.

Remuneration structure and time horizons

The below diagram shows the long time horizons over which variable pay is determined and deferred as related to FY24 awards. For FY25, the LTI performance measures will be assessed over a four year period, with an additional 1-2 year LTI deferral period for the Group CEO and an additional one-year LTI deferral period for other eligible Senior Executives.

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Fixed pay
Cash STI
Group CEO:
50% of total STI
Senior Executives:
65% of total STI
Deferred STI
(one-year deferral)
Group CEO:
25% of total STI
Senior Executives:
17.5% of total STI
Deferred STI (two-year deferral)
Group CEO: 25% of total STI
Senior Executives: 17.5% of total STI
LTI performance measures assessed over a three-year Group CEO: Additional 1-3 year LTI deferral period
period (total LTI deferral period of 4-6 years)
Financial
• Relative TSR against S&P / ASX 100 organisations (35%) Tranche 1
• Relative TSR against 15 S&P / ASX 100 financial organisations
that are domiciled in Australia (35%) Tranche 2
Non-Financial
• Relative Suncorp Group Insurance Customer NPS Tranche 3
(Consumer AU) (20%)
• Relative Trust and Reputation (10%) Eligible Senior Executives:
Additional 1-2 year LTI deferral period
(total LTI deferral period of 4-5 years)
Tranche 1
Tranche 2
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
STI
LTI
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58 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

FY24 remuneration outcomes

Fixed pay

STI outcomes[1]

LTI outcomes[2]

0[%]

Group CEO’s fixed pay increase

82[%] of target Group CEO STI outcome

55.5[%]

FY22 LTI reward outcome

3[%]

Average Senior Executive fixed pay increase

42[%] 83[%] Range of Senior Executive STI outcomes

of target

The STI outcomes and target opportunities are inclusive of the additional one-off 20% STI opportunity related to the successful execution of the Bank Transition Program. Executive incentive outcomes against this additional measure were determined in light of Group performance as well as individual contribution and ranged from 0% to 20%.
LTI outcomes are shown for the FY22 LTI rights as these would have ordinarily been tested against the performance measures in the normal course at 30 June 2024. Due to complexities with the Bank sale, these rights were tested early at 30 June 2022 (where the performance outcome was 55.5%). As part of hindsight reflection, the performance of these rights was tested in the ordinary course at 30 June 2024. As at this date 83.3% of the rights had satisfied the performance measures. While testing the FY22 LTI rights in the ordinary course at 30 June 2024 would have resulted in a further 27.8% vesting compared to when the FY22 LTI rights were tested early at 30 June 2022, the Board upheld the original vesting level of 55.5% and this was therefore the reward outcome to the executives. See section 2 for further detail.

Annual Report 2023-24 59

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

1. Executive remuneration overview [continued]

FY24 actual remuneration realised

		Realised remuneration		2,070	1,014	1,228	1,228				$4,312
Steve Johnston		Maximum opportunity		2,070	1,242			1,242	3,105		$7,659

		Realised remuneration		1,033	663	436		585			$2,718
Adam Bennett1		Maximum opportunity		1,033		1,012		545		1,038	$3,628

		Realised remuneration		945	559	373					$1,876
Lisa Harrison		Maximum opportunity		945		931			501	955	$3,332

Jimmy Higgins2		Realised remuneration		794	433	296					$1,523
		Maximum opportunity		794		744			401	763	$2,702

		Realised remuneration		905		273	36				$1,213
Bridget Messer
		Maximum opportunity		905		444		239	100	683	$2,370

		Realised remuneration		617		370		138			$1,125
Michael Miller3		Maximum opportunity		617		601			324	706	$2,248

		Realised remuneration		924	585		374				$ 1,883
Jeremy Robson
		Maximum opportunity		924		912			491	935	$3,261

Bruce Rush4		Realised remuneration		445			263	114			$821
		Maximum opportunity		445				400	267	250	$1,362

Belinda Speirs		Realised remuneration		772		377	179				$1,328
		Maximum opportunity		772			570		307	559	$2,208

Fiona Thompson		Realised remuneration		840	501	278					$1,618
		Maximum opportunity		840		823			443	844	$2,950
Former Executives
Paul Smeaton5		Realised remuneration	167	55	397						$619
		Maximum opportunity	167	164	89				950		$1,370

Clive		Realised remuneration		403	390		101				$894
van Horen6		Maximum opportunity		403				397		214	$1,013
	Fixed pay ($000) Cash STI ($000)7		Deferred STI ($000)7			Other cash		($000)	Other equity ($000)		LTI ($000)8

Mr Bennett’s other equity relates to a special incentive award for benefits forgone at his prior employer.
Mr Higgins’ remuneration (paid in New Zealand dollars) has been converted to Australian dollars based on the average exchange rate from 1 July 2023 to 30 June 2024.
Mr Miller’s remuneration reflects his role as CEO C&PI from 4 September 2023.
Mr Rush’s remuneration reflects his role as CEO Suncorp Bank from 4 December 2023. Other cash relates to Mr Rush’s Bespoke LTI Award granted in FY24.
Mr Smeaton’s remuneration reflects his role as COO – Insurance up to 3 September 2023. Mr Smeaton’s maximum LTI reflects his full LTI allocation. This was pro-rated upon his retirement from Suncorp and may vest in the normal course.
Mr van Horen’s remuneration reflects his role as CEO Suncorp Bank up to 3 December 2023. Other equity relates to a special incentive award for benefits forgone at his prior employer.
The realised Cash STI refers to the actual cash component of the FY24 STI. The realised Deferred STI refers to Deferred STI awards granted in prior years that vested in FY24. The maximum Cash and Deferred STI figures refer to the maximum Cash and Deferred STI opportunities for FY24 and include the additional one-off 20% STI opportunity related to the successful execution of the Bank Transition Program. See section 2 for further detail.
No LTI was realised by executives in FY24.

60 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

2. Executive remuneration structure

Fixed pay

Fixed pay
	Consists of base salary, superannuation (or KiwiSaver) and any salary sacrifced benefts.
Structure	Refects the role scope and the individual’s capability and is set in the context of internal relativities and external market data.
	External market data is based on a comparator group of selected fnancial services companies in the S&P / ASX 100
	(excluding REITs).

Short-term incentive

Short-term incentive
Purpose	To provide a short-term incentive for executives to achieve stretching performance measures aligned with the one-year business plan. The performance measures have been set having regard to Suncorp’s diverse stakeholders including shareholders, regulators, customers and our people.
STI opportunity	In FY24, the Group CEO’s remuneration mix changed. This enabled compliance with the deferral requirements under CPS 511 through the LTI component.
	Executives Target STI Maximum STI
	Group CEO 100% of fxed pay 100% of fxed pay
	Senior Executives (excluding GE C&T and Group CRO) 100% of fxed pay 150% of fxed pay
	GE C&T 75% of fxed pay 112.5% of fxed pay
	Group CRO 50% of fxed pay 75% of fxed pay

In addition to the opportunities outlined above, all executives received an additional one-off 20% STI opportunity for FY24 related to the successful execution of the Bank Transition Program. Inclusive of the additional one-off 20% STI opportunity, the FY24 Group CEO STI target and maximum opportunities were 120% of fixed pay. The target STI opportunity for most Senior Executives was 120% of fixed pay, excluding the GE C&T and the Group CRO where the target STI opportunity was 90% and 60% of fixed pay respectively. There was no change in the maximum STI opportunity for the Senior Executives.

Performance period 1 July 2023 – 30 June 2024

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Group Scorecard performance measures
Group CEO
The Group CEO is primarily assessed
15% against the Group Scorecard performance
measures.
People and Culture The Group Scorecard is intentionally
20% weighted to incentivise executives
Customer to focus on both financial and non-
Risk financial measures and this also ensures
50% compliance with CPS 511. Further detail on
15% Financial the Group Scorecard measures is outlined
Performance measures further below.
and assessment
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Senior Executives

Senior Executive performance outcomes are dependent on the Group Scorecard outcome and their own Function Scorecard outcome.

In addition to the above scorecard measures, all executives were subject to additional measures related to the successful execution of the Bank Transition Program. See further below for detail.

In assessing performance, the Board also considers other relevant factors. These include significant risk matters identified by management’s Remuneration Oversight Committee and determined by the Board Risk Committee, the shareholder experience, demonstration of the Being @ Suncorp behaviours and holistic Group and individual performance.

Annual Report 2023-24 61

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

2. Executive remuneration structure [continued]

Short-term incentive [continued]

Gateway and modifer A STI gateway and modifer linked to the Code of Conduct applies. Where an Conduct, their STI may be reduced (down to nil).	executive has not adhered to the Code of	executive has not adhered to the Code of
Delivery mechanism 50% 65% Cash Deferred over one year Deferred over two years Group CEO Most Senior Executives The CEO Suncorp Bank’s STI is delivered 60% as cash and 40% deferred into
	25% 25%
		~~Share rights~~

		17.5% 17.5%
	share rights w	~~Share rights~~
		hich vest after four years.
Share rights allocation methodology The number of share rights is determined by dividing the portion of the STI th price (VWAP) of Suncorp’s ordinary shares over the fve days preceding the s A Dividend Equivalent Payment (DEP) is paid on any vested share rights that deferral period. No DEP is paid on any share rights that lapsed.	at is deferred by the volume weighted average tart of the deferral period. convert to shares at the end of the relevant
Remuneration consequences The Board has discretion to apply an in-year reduction to STI outcomes to refect any signifcant risk or conduct matters. In addition, all share rights are subject to malus and clawback criteria. See section 3 for further detail.
Termination of employment See section 6 for the treatment of STI awards on termination of employment.

62 Annual Report 2023-24

REMUNERATION REPORT FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Group Scorecard performance measures

The performance measures are outlined below and the performance outcomes are outlined in section 4.

Scorecard category	Scorecard measure Weighting	Rationale
People and Culture	Workforce of the Future 15% Gender Pay Gap	The achievement of Suncorp’s strategy requires a signifcant focus on four future workforce shifts related to capacity, composition, capability and culture.
		The Gender Pay Gap is aligned to Suncorp’s desire for a diverse and inclusive workforce and workplace. It is an indicator of equal opportunities and equal pay between the genders. Suncorp’s Board has committed to reducing the Gender Pay Gap.
Customer	Suncorp Group Insurance Customer Net Promoter Score (NPS) (Consumer AU) 20% AU Claims NPS (Home and Motor) SNZ General Insurance Claims NPS Suncorp Bank Main Financial Institution (MFI) NPS (Consumer)	NPS measures align to Suncorp’s Purpose of building futures and protecting what matters and Suncorp’s goal to drive customer obsession through a focus on the customer experience. NPS is a standard and accepted market measure used to gauge customer advocacy. It provides insight into the customer experience and is reliably measured through external surveys.
Risk	Building a moderate risk environment 15% Enhancement of controls Operating within risk appetite	The three measures support a balanced assessment across the use of risk appetite and maintaining strong core risk and compliance practices. The measures provide insights to the Board on the Group’s risk culture, compliance practices, regulatory matters, adherence to Suncorp’s Risk Appetite Statement, incidents and the control environment. The assessment incorporates Board Risk Committee feedback.
Financial	Adjusted NPAT 25%	Adjusted NPAT provides stakeholders with a clear view of the Group’s underlying results. It is a useful measure to shareholders in evaluating the underlying operating performance of the business. The adjustments that applied to Adjusted NPAT in FY24 are outlined in section 4. In FY24, the Adjusted NPAT weighting was reduced from 30% to 25% to place more emphasis on the unadjusted Cash Return on Tangible Equity (Cash RoTE) measure.
	Cash RoTE 25%	Cash RoTE is a measure of Suncorp’s overall return to shareholders. It illustrates how efective Suncorp is at turning the cash put into the business into greater gains and growth for the organisation and investors. Compared to Cash Return on Equity, this measure is more relevant for current shareholders and the management team and is more closely aligned to return on incremental capital. It is also a more comparable measure across peers. In FY24, the Cash RoTE weighting was increased from 20% to 25% to place further emphasis on this measure.
	Total 100%
Successful execution of the Bank Transition Program To provide an additional incentive for the Group CEO and Senior Executives to achieve performance measures related to the succesful execution of the Bank Transition Program, the target STI opportunity for these roles was increased by 20% in FY23. As the completion of the Bank sale did not complete in FY23, this additional incentive opportunity was rolled into FY24 to enable the Board to appropriately assess performance. The performance measures are outlined below and the performance outcomes are outlined in section 4. Scorecard category Scorecard measure Weighting Rationale
Successful execution of the Bank Transition Program	Successful separation of Suncorp Bank Ά Obtaining relevant regulatory approvals Ά Maintenance of Bank employee engagement Ά Appropriate management of separation costs Ά Efective management of risks associated with the transition within risk appetite Ά Smooth transition process and planning leading up to separation Ά Value of Suncorp prior to, and post, completion. 20% This additional STI opportunity was provided to: Ά incentivise executives to collectively drive completion of the Bank Transition Program. This program presented additional complexity and required signifcant efort in addition to the achievement of the Group and Function Scorecard measures. An example of this is the physical separation that was required of Bank and Insurance customer data to enable both the Bank and Insurance businesses to focus on the longer-term strategic priorities, Ά assist with executive retention during a period of high uncertainty, and Ά focus the executives on developing a 3-year plan to set Suncorp up to deliver its FY27 ambition to be a leading Trans-Tasman insurer post-Bank sale. Setting the post-Bank sale Group up for success Ά Development of post-Bank sale 3-year plan Ά Progress towards resolution of stranded costs.

Annual Report 2023-24 63

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

2. Executive remuneration structure [continued]

Long-term incentive

Purpose	To provide executive reward outcomes which align to the creation of long-term sustainable shareholder value. Performance measures consist of relative TSR which is directly aligned to the shareholder experience, along with relative Customer NPS and relative Trust & Reputation which are drivers of long-term sustainable shareholder value. Performance measures have been selected having regard to Suncorp’s diverse stakeholders including shareholders, regulators, customers, and community.
Allocation	Executives Allocation
	Group CEO 150% of fxed pay
	Senior Executives (excluding GE C&T and Group CRO) 100% of fxed pay
	GE C&T and Group CRO 75% of fxed pay
	In light of the expected separation of Suncorp Bank, the CEO Suncorp Bank did not receive a standard LTI allocation. Instead, he received a bespoke LTI award of $250,000. This award was subject to the CEO Suncorp Bank meeting the required performance standards of his role, demonstrating the Being @ Suncorp behaviours, and continued service up to the separation date of Suncorp Bank. As these conditions were satisfed, the award vested on 31 July 2024. 60% of the award was paid at this time, with the remaining 40% payable in two equal tranches after 4 and 5 years from the award date.
Allocation methodology	The LTI allocation is divided by the VWAP of Suncorp’s ordinary shares over the fve days preceding the start of the performance period. No discount is applied for the probability of achieving the performance measures.
Instrument	Performance rights. If the performance rights achieve the performance measures, they will become vested rights until they convert to shares or are cash settled (in limited circumstances) at the end of the relevant deferral period.
Performance period	Three years from 1 July 2023 - 30 June 2026. A performance period of three years operated in FY24 as this aligned to the business planning process. From FY25, the performance period will be extended from three years to four years to create alignment between executive reward outcomes and the shareholder experience over a longer period.
Deferral period	Group CEO The LTI rights are allocated in three equal tranches which vest over a 4-6 year deferral period: Tranche 1: 1 July 2023 – 30 June 2027 Tranche 2: 1 July 2023 – 30 June 2028 Tranche 3:1 July 2023 – 30 June 2029
	Senior Executives The LTI rights are allocated in two equal tranches which vest over a 4-5 year deferral period: Tranche 1:1 July 2023 – 30 June 2027 Tranche 2:1 July 2023 – 30 June 2028
	To more closely align executive reward outcomes with the shareholder experience, a DEP is paid at the end of the relevant deferral period. This DEP is only paid on any vested rights that met the performance measures and service conditions and converted to shares or were cash settled (in limited circumstances). No DEP is paid on any rights that lapsed.
Performance measures	There are four performance measures: Ά Relative TSR against S&P / ASX 100 companies (35% weighting) Ά Relative TSR against 15 S&P / ASX 100 fnancial organisations domiciled in Australia (35% weighting) Ά Relative Suncorp Group Insurance Customer NPS (Consumer AU) (20% weighting) Ά Relative Trust and Reputation (10% weighting) Detail on these performance measures is outlined over the following page.
Vesting schedule	Each performance measure is subject to the below vesting schedule.
	Relative performance outcome Percentage of LTI award subject to the relevant performance measure that may vest
	Below 50th percentile Nil
	50th percentile 50%
	Between the 50th and 75th percentiles Straight line vesting between 50% and 100%
	At or above the 75th percentile 100%
Remuneration consequences	All performance rights and vested rights are subject to malus and clawback criteria. See section 3 for further detail.
Termination of employment	See section 6 for information on the treatment of LTI awards on termination of employment.

64 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

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LTI performance measures
To reward balanced performance and to comply with CPS 511, non-financial measures were incorporated into the
10% FY24 LTI plan with a collective weighting of 30%. Engagement with APRA occurred as part of the process for selecting
the non-financial measures. There were no changes to the Relative TSR measures which were in place in FY23,
however the weighting on these measures reduced to 70%.
35%
20%
Relative TSR against S&P / ASX 100 companies
Relative TSR against 15 S&P / ASX 100 financial organisations that are domiciled in Australia
Relative Suncorp Group Insurance Customer NPS (Consumer AU)
35%
Relative Trust and Reputation
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Performance measure	Weighting	Rationale
Relative TSR against		Relative TSR closely aligns LTI outcomes to the shareholder experience.
S&P / ASX 100 companies (broad-based comparator group)	35%	The broad-based comparator group provides a relative indicator of changes in shareholder value by comparing the Company’s return to shareholders against the returns of companies of a similar size and investment profle.
		The customised comparator group provides a relative indicator of changes in shareholder value by comparing the
Relative TSR against 15 S&P / ASX 100 fnancial organisations that are domiciled in Australia (customised comparator group)	35%	Company’s return to shareholders against the returns of large companies in the same industry that are exposed to similar external factors. The customised comparator group consists of AMP Limited, ASX Limited, Australia and New Zealand Banking Group Limited, Bank of Queensland Limited, Bendigo and Adelaide Bank Limited, Challenger Limited, Commonwealth Bank of Australia, Insurance Australia Group, Macquarie Group Limited, Medibank Private Limited, National Australia Bank Limited, NIB Holdings Limited, QBE Insurance Group Limited, Steadfast Group Limited and Westpac Banking Corporation. Performance is assessed based on Suncorp’s relative TSR over the performance period.
		Net Promoter Score (NPS) is a standard and accepted market measure of customer advocacy and provides insight into
		the customer experience.
		Suncorp Group’s NPS score is the weighted aggregated score across customers of the Australian insurance brands
		(AAMI, APIA, GIO, Suncorp, Shannons, Bingle, Terri Scheer and CIL Insurance). The weighting is based on contribution of
		each brand’s customers to total Group customers. Performance is assessed based on the absolute change in NPS score
		against a comparator group of eight insurance brands over the performance period. The comparator group covers the
		‘autoclub’ and ‘price challenger’ general insurers and consists of Budget Direct, Coles Insurance, NRMA, RACQ, RACV,
		Woolworths Insurance and Youi, as well as Allianz Australia.
		The Board believes this measure is robust for inclusion in the LTI plan given:
		Ά it is strategically aligned. The measure is consistent with Suncorp’s multi-brand strategy and long-term goal to
		improve customer experiences across all brands against competitor brands.
Relative Suncorp Group Insurance Customer NPS	20%	Ά it is independently sourced and vesting outcomes are verifed by Suncorp Internal Audit.
(Consumer AU)		Ά NPS outcomes are objective, quantifed and are assessed on a relative basis.
		Ά the measure aligns to APRA’s principles in respect of prudent risk taking and long-term soundness. This is because
		any signifcant risk matter that arises over the performance period is expected to be refected in customer advocacy
		and the NPS outcome. In addition, strong customer advocacy is needed to create a sustainable business.
		Ά the measure is stretching. Outcomes are based on relative performance and it is challenging to lift NPS scores in the
		face of current insurance afordability challenges and ongoing infationary pressures such as rising input costs.
		NPS scores are currently determined by RFI Global - Atlas through an online survey of customers of each brand. The
		survey is performed continuously throughout the year enabling regular reporting of outcomes.
		RFI Global - Atlas uses a representative sample of Australian consumers, weighted against Australian Bureau of Statistic
		data to provide quality and robust sampling that allows for comparisons at high levels of granularity across state, product, channel and customer demographic profles.

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2. Executive remuneration structure [continued]

Long-term incentive [continued]

Performance measure	Weighting	Rationale
		Trust and reputation play a key role in the extent to which a broad range of stakeholders view Suncorp as trustworthy
		and reliable. Trust and reputation are assessed using the RepTrak methodology which includes the sentiment of
		customers and non-customers.
		The Board believes this measure is robust for inclusion in the LTI plan given:
		Ά it is strategically aligned and focuses executives on Suncorp’s reputation in the community with existing and
		prospective customers and employees. This drives both customer and employee attraction and retention and, in
		turn, contributes towards a sustainable business.
		Ά the measure is based on a reputation score which is independently assessed by The RepTrak Company.
		Ά the reputation score is objective, quantifed and assessed on a relative basis. Suncorp’s fnal rank at the end of
		the performance period is compared against a comparator group of ten Group level or subsidiary companies
Relative Trust and Reputation	10%	in the insurance sector that are facing similar external factors, regulatory requirements and / or customer and community expectations. The comparator group is Allianz Australia, Budget Direct, Bupa, HCF, Insurance Australia
		Group, Medibank Private, NIB Holdings Limited, QBE Insurance Group, Youi and Zurich.
		Ά the measure aligns to APRA’s principles in respect of prudent risk taking and long-term soundness because
		sustainable businesses are underpinned by strong trust and reputation. Any signifcant risk matter that arises over
		the performance period is expected to be refected in the reputation score.
		Ά the measure is stretching because Suncorp’s business model has fundamentally changed following the sale of
		Suncorp Bank. It is important for Suncorp to maintain and enhance its strong reputation as it cements itself as a
		stand-alone, leading, Trans-Tasman insurer.
		The RepTrak score gauges the level of trust, admiration and respect, esteem, and positive sentiment towards a
		company. A reputation score (between 0 and 100) is calculated based on responses to a survey from a nationally
		representative sample of Australians aged 18 and over, screened for their level of knowledge about each company
		before qualifying to participate.

Mandatory shareholding requirement (MSR)

To further align executive interests with those of shareholders and to encourage prudent risk taking, the Group CEO and most Senior Executives are required to have a shareholding in the Company equivalent to at least 100% of fixed pay. The MSR for the GE C&T and Group CRO is at least 75% of fixed pay.

Executives are required to meet the MSR four years from the October following their appointment, with 50% to be achieved after two years. The value of the shares for the purposes of this requirement is the five-day VWAP up to 30 June in the relevant year. The Board has discretion to alter the VWAP in any particular year in light of any business decisions or external factors materially impacting the share price.

Based on their shareholding as at 30 June 2024, all executives have either met their MSR, or are on track to meet this, within the required timeframes. Detailed share ownership information for executives is outlined in section 6.

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SHAREHOLDER INFORMATION

3. Remuneration governance, risk and consequences

Remuneration governance

The People and Remuneration Committee endorses the Group’s people and remuneration frameworks and practices to the Board for approval. It assists the Board in fulfilling its responsibilities by ensuring that frameworks are in place that enable the Group to attract, motivate and retain talent and support the achievement of Suncorp’s strategic objectives and cultural aspirations.

Remuneration outcomes for the Group CEO are recommended by the Chairman of the Board, endorsed by the People and Remuneration Committee, and approved by the Board. For Senior Executives, these are recommended by the Group CEO, endorsed by the People and Remuneration Committee, and approved by the Board.

The People and Remuneration Committee receives input from the Remuneration Oversight Committee (ROC), Board Risk Committee (BRC), external advisers and management as illustrated below.

People and Remuneration Committee

The People and Remuneration Committee’s members as at 30 June 2024 are:

Chairman Sylvia Falzon Members Elmer Funke Kupper Simon Machell Ex officio member Christine McLoughlin, AM

The People and Remuneration Committee’s responsibilities are outlined in its charter available at suncorpgroup.com.au/about/corporategovernance. The Committee held six meetings during FY24. The biographies of the Committee Chairman and members are outlined in the Directors’ Report.

Remuneration Oversight Committee

The ROC is a management committee which consists of the GE PC&A (Chairman), Group CRO and Group CFO. It is responsible for recommending significant risk matters (such as significant risk incidents, breaches and adverse internal audit or regulatory reports) to the BRC which may lead to remuneration consequences.

Board Risk Committee

The BRC considers the matters raised by the ROC and recommends any significant risk matters that should be considered for remuneration consequences to the People and Remuneration Committee.

The BRC Chairman joins the People and Remuneration Committee for discussion on remuneration consequences in light of any significant risk matters.

External advisers

External advisers provide independent advice, as requested, to the People and Remuneration Committee. No remuneration recommendations were made by a remuneration consultant during FY24.

Management

Management advises the People and Remuneration Committee based on specific expertise and business knowledge. Any potential conflicts of interest are appropriately managed.

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3. Remuneration governance, risk and consequences [continued]

Alignment of remuneration with risk outcomes

Key elements of how risk and conduct are incorporated into the remuneration framework are outlined below:

Ά The Board approves the Remuneration Policy and is responsible for the effectiveness of the remuneration framework. The Remuneration Policy is underpinned by a number of Remuneration Standards. The remuneration framework is subject to an annual compliance review and a triennial effectiveness review.
Ά The Board has overall discretion over remuneration outcomes. Board discretion is an important part of the remuneration framework as it ensures that remuneration outcomes reflect the Board’s holistic assessment of performance as opposed to a purely formulaic outcome.
Ά The Enterprise Risk Management Framework (ERMF) lays the foundation for all Suncorp’s risk management processes. The ERMF seeks to ensure the integration of risk management in the Group’s decisions and business processes. Employees are educated on the importance of managing risk and the link between risk management and the outcomes for Suncorp’s shareholders, customers and people. Any breaches of risk management processes, including the Code of Conduct, can lead to remuneration consequences.
Ά There is a Board approved risk culture target state which sets out the individual and collective attitudes and behaviours towards risk that Suncorp wishes to foster amongst its people. The remuneration framework is designed to incentivise the desired risk culture which enables Suncorp to deliver better business and customer outcomes.
Ά A Consequence Management Guideline ensures that remuneration consequences are determined in a fair and consistent way across the Group. Remuneration consequences are determined in relation to the below hierarchy:

Nature of risk adjustment tool	Description	Application
In-year STI adjustment	This refers to the Board’s ability to scale down STI awards (to nil) before they are paid as a result of a signifcant risk or conduct matter.	All employees
Malus	This refers to the Board’s ability to scale down any unvested equity (to nil) as a result of a signifcant risk or conduct matter.	Group CEO, Senior Executives and senior employees who receive deferred incentives
Clawback	This refers to the Board’s ability to recover in part or in whole variable remuneration that has already been paid or vested for up to two years from the date of payment or vesting. This risk adjustment tool would only be used in exceptional circumstances after the ability to apply an in-year STI adjustment or malus has been exhausted.	Group CEO, Senior Executives and a small number of other senior employees

Ά There is a hedging prohibition. Suncorp Group’s Securities Trading Policy regulates dealing by directors, employees and contractors in Suncorp securities and prohibits hedging transactions to limit the economic risk of a holding in the Company’s securities including unvested rights. Any subsequent dealing in those shares is subject to the terms of the Securities Trading Policy. Further detail can be found in the 2024 Corporate Governance Statement at suncorpgroup.com.au/about/corporate-governance.

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Alignment of remuneration with risk outcomes [continued]

Ά Risk and conduct are embedded in the operation of the STI and LTI Plan as outlined below:

STI LTI	Year 1	Year 2	Year 3	Year 4 back	Year 5	Year 6
	Performance period Ά The Board sets the Group and Function Scorecards at the start of the performance period which have a material weighting on risk measures. Ά The Board assesses the Group and Function Scorecards at the end of the performance period. STI outcomes are based on both “the what and the how” and are determined having regard to holistic performance. This includes achievement against performance measures as well as a judgement overlay which takes into account individual demonstration of the Being @ Suncorp behaviours, Code of Conduct compliance and any signifcant risk or conduct matter. In-year STI adjustment	A signifcant the STI awar into share rig vest over 1-2 (50% for Gr and 35% for Senior Execu The Board is for approvin release of all rights. This is if the Board it is appropri regard to an risk or condu Ma	portion of d is deferred hts which years oup CEO most tives). responsible g the share only done considers ate having y signifcant ct matter. lus Claw
	Performance period Ά The Board sets the LTI performance measures with a material weighting on non- fnancial measures. Non-fnancial outcomes are expected to be impacted by any signifcant risk or conduct failure. Ά The Board assesses LTI awards against the performance measures at the end of a 3 year performance period (4 years from FY25). Malus

Risk matters considered by the Remuneration Oversight Committee and Board Risk Committee

Over FY24, 59 matters were considered by the ROC. The Board Risk Committee had visibility over all these matters and recommended to the People and Remuneration Committee the significant matters that should be considered for remuneration consequences. 15 matters led to a remuneration consequence recommendation of an in-year STI adjustment. No matters led to a malus or clawback investigation or recommendation.

Conduct matters considered by leaders

Over FY24, in addition to the matters considered by the ROC, 207 employees breached the Code of Conduct where formal consequences were applied. This included:

Ά 125 employees leaving Suncorp
Ά 14 employees[1] receiving nil variable rewards
Ά 68 employees[1] receiving a minimum 20% reduction in variable rewards.
Pending the finalisation of the 2024 Annual Review.

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4. Executive remuneration outcomes

Group performance

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Group NPAT ($m) Adjusted NPAT ($m) [1] Group cash earnings ($m) Closing share price ($) [2] Dividend per share (cents)
17.41
1,372
1,148 1,197 1,062 1,121 1,254 13.49 74
1,033 921 991 1,064 11.11
913 830 10.98
749 9.23
44
681 673 36 38
27
FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24
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Suncorp’s TSR over the five financial years to 30 June 2024 was 63%. This compares to the S&P / ASX 100 index of 44% and S&P / ASX 100 Financials of 51%[3] .

Suncorp Group Limited, S&P/ASX 100 Index and S&P/ASX 100 Financials Total Shareholder Return Performance (based on daily accumulated price) 1 July 2019 - 30 June 2024

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200
150
100
50
Suncorp Group Limited
S&P / ASX 100 Financials
S&P / ASX 100 Index
0
Date
Accumulation Index Performance
Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 Jan-24 Apr-24 Jul-24
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Source: Deloitte Touche Tohmatsu
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Adjusted NPAT is the profitability figure used in the STI plan. See section 2 for further detail.
The closing share price is generally at 30 June. Where 30 June falls on an ASX non-trading day, the closing share price of the preceding trading day is used. The opening share price at 1 July 2019 was $13.45.
Source: Deloitte Touche Tohmatsu.

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Group Scorecard outcomes

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Actual
performance
outcome
People and Culture
Creating the
environment Suncorp maintained strong engagement scores throughout FY24 whilst also
Workforce of the Future continuing to evolve its ways of working (including hybrid working), building a strong
for people to
thrive while 15% culture and delivering a variety of capability and reskilling programs.
delivering a
workforce Gender Pay Gap Suncorp successfully reduced its Gender Pay Gap from 17.8% to 16.8% during
reimagined FY24, albeit performance was below the target of 16.5%.
Customer
Suncorp Group Insurance Customer NPS (Consumer AU) was between threshold
Suncorp Group Insurance and target reflecting weaker perceptions of price, claims and loyalty recognition
Customer NPS (Consumer AU) over FY24. A program of work is underway to focus on improving customer
retention and communications.
AU Claims NPS (Home and Motor) was below threshold. A program of work is
AU Claims NPS (Home and
underway to reduce the backlog of claims and to deliver a faster customer
Motor)
experience.
Create
value for 20% SNZ GI Claims NPS was impacted from unprecedented cost of living issues in
customers New Zealand as well as a program of work which commenced to simplify how
SNZ GI Claims NPS SNZ manages large volume claims. While the program of work was expected
to place temporary downward pressure on NPS during FY24 implementation,
the temporary impact on NPS will yield significant customer benefits once
embedded fully from FY25 onwards.
Suncorp Bank MFI NPS (Consumer) was at target. This result was supported by
Relative Suncorp Bank MFI NPS
an uplift and consistency in the grade of service and targeted investments in
(Consumer) improving technology resilience and digital self-service capability.
Risk
Building a moderate risk The Group made progress towards building a moderate risk environment
environment and has driven improvements in the enhancement of controls. Performance
Manage risk against operating within risk appetite was impacted by some adverse audit
within agreed Enhancement of controls 15% and regulatory reports. Over the year there were many examples of sound risk
parameters culture and risk management, including favourable regulatory reviews, robust
management of risks relating to the Bank sale and good progress against the
Operating within risk appetite Group’s Risk Strategy.
Financial
The Group delivered an Adjusted NPAT result of $1,121 million which was 91%
of the target of $1,226 million. The actual Group NPAT was $1,197 million.
Adjustments were made for investment market impacts (including GI investment
Adjusted NPAT 25% income, Life market adjustments for Suncorp NZ), natural hazard claim costs and
associated risk margin and CHE movements, prior year natural hazard and
run-off / historical portfolio claims adjustments, impacts of corporate
Deliver development activities (including a small number of Bank sale related impacts),
targeted profit after tax restructuring costs and IFRS 17 loss component movements beyond budget.
and improve While Adjusted NPAT was below target, Cash RoTE was 16.0% being above the
shareholder target of 15.8%. The strong headline performance was driven by both cash
returns earnings and tangible equity being slightly higher than budget.
Higher cash earnings were predominantly driven by natural hazard experience
Cash Return on Tangible Equity 25% below allowance and higher investment income partially offset by higher
reorganisation and remediation costs. Downside from higher net incurred claims
was mostly offset by higher net insurance revenue and a higher loss component
release. The higher tangible equity is primarily driven by the average equity
movement in Bank (reserves movements) and GI (retained profits).
Overall Group Scorecard outcome
Strategic Driver Measures Weighting Below threshold Threshold to target Target Target to stretch Stretch FY24 Performance Summary
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4. Executive remuneration outcomes [continued]

Successful execution of the Bank Transition Program

Actual performance outcome

Additional one-off STI opportunity

Successful separation of Suncorp Bank

Ά Obtaining relevant regulatory approvals

Ά Maintenance of Bank employee engagement

Ά Appropriate management of separation costs

Ά Effective management of risks associated with the Successful transition within risk appetite execution Ά Smooth transition process of the Bank and planning leading up to Transition separation Program Ά Value of Suncorp prior to, and post, completion

Setting the post-Bank sale Group up for success

Ά Development of post-Bank sale 3 year plan

Ά Progress towards resolution of stranded costs

20%

The sale of Suncorp Bank to ANZ was successfully executed and completed on 31 July 2024 following the navigation of a comprehensive regulatory approval process.

The Bank Transition Program was oversighted and prioritised by the Group CEO and Senior Executives. It involved a significant program of work focused on the separation of the Bank including data separation, minimising brand uncertainty and customer confusion, maintaining strong employee engagement, as well as implementing tailored change plans for transitioning teams.

Engagement levels within Suncorp Bank ended the year at 8.4 out of 10, being in the top 25% of the Finance industry. The complex separation of the Bank and Insurance customer data pre-completion mitigated execution risk and enabled a more seamless customer transition.

The establishment of a robust post completion operational management framework will help to preserve deal value and mitigate risks, positioning Suncorp for continued success in the future.

The FY25-27 plan was developed and approved by the Board in May 2024. It will enable Suncorp to deliver on its FY27 ambition across five portfolios. The plan is centered around Suncorp Group’s customers, while at the same time delivering appropriate shareholder returns within a moderate risk environment. Finally, it makes targeted investments particularly in technology, setting Suncorp up for its FY30 ambition.

The plan also addresses post-Bank sale stranded costs supported by a more stream-lined business and operational efficiency / transformation investments.

Outcome

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SHAREHOLDER INFORMATION

Short-term incentive outcomes

The Group CEO’s FY24 maximum STI is 120% of the target STI opportunity, whereas the Senior Executives’ maximum STI is 150% of their target STI opportunity.

Group CEO and Senior Executives[1]

S Johnston
Actual STI	$1,014,300	$1,014,300		$2,028,600
Maximum STI		82% of maximum STI achieved (18% forfeited)			$2,484,000
A Bennett
Actual STI	$663,000	$357,000	$1,020,000
Maximum STI		66% of maximum STI achieved (34% forfeited)			$1,557,000
L Harrison
Actual STI	$559,000	$301,000	$860,000
Maximum STI		60%of maximum STI achieved (40% forfeited)			$1,432,500
J Higgins2
Actual STI	$432,947	$233,125	$662,072
Maximum STI		58% of maximum STI achieved (42% forfeited)			$1,144,811
B Messer
Actual STI	$273,000	$147,000	$420,000
Maximum STI		62% of maximum STI achieved (38% forfeited)			$682,500
M Miller3
Actual STI	$370,098	$199,284	$569,382
Maximum STI		62% of maximum STI achieved (38% forfeited)			$925,205
J Robson
Actual STI	$585,000	$315,000	$900,000
Maximum STI		64% of maximum STI achieved (36% forfeited)			$1,402,500
B Rush3
Actual STI	$262,588	$175,059	$437,647
Maximum STI		66% of maximum STI achieved (34% forfeited)			$667,008
B Speirs
Actual STI	$377,000	$203,000	$580,000
Maximum STI		66% of maximum STI achieved (34% forfeited)			$877,500
F Thompson
Actual STI	$500,500	$269,500	$770,000
Maximum STI		61% of maximum STI achieved (39% forfeited)			$1,266,000
Former Senior Executives
P Smeaton4
Actual STI	$54,811	$29,514	$84,324
Maximum STI		33% of maximum STI achieved (67% forfeited)			$253,074
C van Horen5
Actual STI	$0
Maximum STI		100% of Mr van Horen’s STI was forfeited on resignation			$610,574
Cash STI	Deferred share rights

The maximum STI opportunity includes the additional one-off 20% STI opportunity related to the successful execution of the Bank Transition Program. See section 2 for further detail.
The above STI figures for Mr Higgins’ have been converted to Australian dollars based on the average exchange rate from 1 July 2023 to 30 June 2024.
Mr Miller and Mr Rush’s STI outcome reflects their time as a KMP from 4 September 2023 and 4 December 2023 respectively.
As Mr Smeaton retired, he was eligible to receive a pro-rata STI based on his performance. The above figures reflect his STI up to 3 September 2023.
Mr van Horen’s maximum STI reflects the maximum STI he could have earned over his FY24 service period of 1 July 2023 - 3 December 2023.

Long-term incentive outcomes

As foreshadowed in the 2023 Remuneration Report, due to complexities with the expected separation of Suncorp Bank, the FY22 LTI rights were tested early at 30 June 2022 compared to their original test date of 30 June 2024. The performance rights that met the performance measures were converted to share rights and a further one-year service condition was also imposed to incentivise stability in the executive team.

Based on performance as at 30 June 2022, 55.5% of FY22 LTI rights had satisfied the performance measures. These rights remain subject to restrictions until 30 June 2025. As part of hindsight reflection, the performance of these FY22 LTI rights was tested in the ordinary course at 30 June 2024. As at this date, 83.3% of the rights had satisfied the performance measures and would have vested. While testing the FY22 LTI rights in the ordinary course at 30 June 2024 would have resulted in a further 27.8% vesting compared to when the FY22 LTI rights were tested early at 30 June 2022, the Board upheld the original vesting level of 55.5%.

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5. Non-executive director fees

Remuneration component	Description
	Fees are based on a number of factors, including the requirements of the role, the size and complexity of the Suncorp
Fee structure	Group and market practice. Non-executive directors receive fxed pay only, paid as director fees, and do not participate in any performance-based
	incentive plans.
	Compulsory superannuation guarantee contributions (SGC) are paid on the director’s fee on behalf of all eligible non-
	executive directors, unless a non-executive director is receiving SGC from more than one employer and has elected to
	opt out of receiving the contributions.
Superannuation	The Company’s general practice is to cap SGC at 11% of the Maximum Contribution Base (MCB) (11.5% in FY25).
	Superannuation in excess of the MCB is delivered in the form of fees, unless the non-executive director has elected to
	make voluntary additional superannuation contributions.
	If a non-executive director ceases to be eligible for SGC payments, the equivalent amount is paid in fees.
	Non-executive director aggregate fees are within the shareholder-approved maximum aggregate total remuneration
Aggregate annual fee pool	pool of $3.5 million including SGC. There was no increase in the FY24 fee pool. An increase in the FY25 fee pool is
	proposed. See further below.
	Non-executive directors have four years from the October following their appointment to achieve the MSR, equivalent
	to 100% of their base fees. A 50% shareholding is required to be achieved after two years. Base fees refer to the Board
Mandatory shareholding	Chairman fee or Board Member fee only (excluding Committee fees and SGC).
requirement	Based on their shareholding as at 30 June 2024, all non-executive directors have either met, or are on track to meet, the
	MSR within the required timeframes.
	Detailed share ownership information for the non-executive directors is outlined in section 6.

Outlined below are the non-executive director fees for FY24. These fees have remained the same since 2016 (excluding any legislated increase in the SGC).

	Chairman ($)1 Members ($)
	Fee excluding SGC Fee including SGC Fee excluding SGC Fee including SGC
Board Audit Committee Risk Committee People and Remuneration Committee Customer Committee	600,000 666,000 220,000 244,200 60,000 66,600 30,000 33,300 60,000 66,600 30,000 33,300 60,000 66,600 30,000 33,300 40,000 44,400 20,000 22,200

The Board may also establish other ad-hoc Board Committees as required to deal with specific matters and for a specific duration of time. From July 2023 to February 2024, there was a Completion and Separation Board Sub-Committee. This Committee became the Completion and Transition Committee from March 2024. This Committee met regularly to oversee management’s program of work and received timely information updates in relation to the sale of Suncorp Bank. There is no Chairman fee and the Member fee is $20,000 excluding SGC and $22,100 including SGC.

Changes for FY25

Non-executive director fees (excluding the legislated increases in the SGC) will not be increased. However, shareholder approval will be sought at the 2024 AGM to increase the aggregate amount of the non-executive director fee pool from $3.5 million to $4.0 million.

The Chairman receives a fee for chairing the Board and is not paid any additional fees for chairing the Nomination Committee and Completion and Transition Committee meetings or attending the Audit, Risk, People and Remuneration, and Customer Committee meetings as an ex officio member.

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SHAREHOLDER INFORMATION

6. Contractual arrangements and statutory remuneration

Employment agreements and Incentive Plan Rules

A summary of the executive employment agreements, including key terms outlined in relevant Incentive Plan documentation, is outlined below.

	Group CEO Senior Executives
Notice period	Termination with notice:9 months Resignation:6 months Termination with notice:9-12 months Resignation:3 months
	Suncorp can immediately terminate the executive’s employment in the case of serious misconduct. In this case, the executive would be entitled to fxed pay up to their termination date and their statutory entitlements.
Treatment of STI cash on termination	Resignation or immediate dismissal:No cash STI will be awarded. Redundancy:A cash STI award may be awarded, subject to performance, at Board discretion. All other cases:Board discretion.
Treatment of STI deferred share rights on termination	Resignation or immediate dismissal:All unvested share rights are forfeited. Redundancy:Any unvested share rights will generally remain on-foot and vest at the end of the deferral period and will remain subject to malus and clawback criteria. All other cases:Board discretion.
Treatment of LTI on termination	Unvested rights:Unvested rights are ordinarily forfeited on resignation. The Board has discretion to determine that any unvested rights will continue until the relevant vesting dates and remain subject to the performance measures and malus and clawback criteria. All unvested rights are forfeited on immediate dismissal. Vested rights subject to a holding lock:Any vested rights will continue beyond cessation of employment and may convert into shares or be cash settled at the end of the original deferral period, subject to malus and clawback criteria. Vested rights are forfeited on immediate dismissal.
Change of control	Impact of a change of control on remuneration is at Board discretion.

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6. Contractual arrangements and statutory remuneration [continued]

Executive statutory remuneration

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Year Short-term benefits Post-employment benefits Long-term benefits Share-based payments remunerationTotal Performance related
Non-
Cash monetary Superannuation Termination Deferred
Salary STI benefits [1] Other [2] benefits [3] Other [4] Other [5] benefits STI [6] LTI [7]
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 %
Executive director
S Johnston 2024 2,043 1,014 - 21 27 - 30 - 1,153 2,499 6,788 69%
Group CEO 2023 2,026 828 - (4) 25 - 52 - 982 309 4,218 50%
Senior Executives
A Bennett 2024 1,006 663 - 24 27 - 16 - 397 1,113 3,247 67%
GE T&O 2023 984 525 - 1 25 - 17 - 337 243 2,132 52%
L Harrison 2024 917 559 5 (14) 27 - 27 - 351 898 2,771 65%
CEO Consumer
Insurance 2023 873 481 8 (30) 25 - 27 - 298 116 1,798 50%
J Higgins [8] 2024 731 433 15 (4) 62 - 3 - 276 793 2,310 65%
CEO SNZ 2023 715 365 15 (1) 60 - 16 - 234 84 1,488 46%
B Messer 2024 877 273 - (3) 27 - 14 - 152 467 1,807 49%
Group CRO 2023 854 234 - 8 25 - 14 - 75 243 1,454 38%
M Miller 2024 596 370 11 11 21 - 8 - 166 137 1,320 51%
CEO C&PI [9] 2023 - - - - - - - - - - - -
J Robson 2024 897 585 20 (32) 27 - 22 - 358 936 2,813 67%
Group CFO 2023 852 463 25 (34) 25 - 20 - 298 105 1,754 49%
B Rush 2024 426 263 - 13 14 5 5 - 121 - 846 45%
CEO Suncorp Bank [10] 2023 - - - - - - - - - - - -
B Speirs 2024 741 377 7 21 27 3 17 - 215 513 1,922 57%
GE C&T 2023 703 286 11 26 25 3 16 - 154 69 1,294 39%
F Thompson 2024 813 501 5 0 27 - 20 - 312 835 2,512 66%
GE PC&A 2023 794 426 13 (21) 25 - 24 - 246 103 1,610 48%
Former Senior Executives
P Smeaton 2024 160 55 4 14 7 - (22) - 259 140 617 74%
COO – Insurance [11] 2023 908 474 20 19 25 - 6 - 308 108 1,869 48%
C van Horen 2024 384 - - (10) 16 3 8 - (193) (352) (144) 0%
CEO Suncorp Bank [12] 2023 902 476 - 502 25 5 16 - 214 128 2,270 36%
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Non-monetary benefits include costs met by the Suncorp Group for rebates on insurance premiums and tax advice for the executives based overseas.
Other short-term benefits refer to movements in annual leave accruals and, where applicable, annual leave loading in the case of Mr Higgins in line with New Zealand legislation.
Mr Higgins’ superannuation benefits also include KiwiSaver contributions.
Other post employment benefits refers to superannuation above the maximum contribution base that was paid in cash.
Other long-term benefits refer to movements in long service leave accruals.
Deferred STI includes the amortised value of any on-foot share rights that were delivered as part of the STI related to FY24 or prior to this time. FY23 amounts have been restated to reflect the true up of actual amortisation.
LTI refers to the amortised value of grants under the LTI Plan. Awards are expensed to the profit & loss statement based on the fair value at grant date over the period from grant date to vesting date. The assumptions underpinning these valuations are set out in note 30 to the financial statements.
Mr Higgins’ remuneration (paid in New Zealand dollars) has been converted to Australian dollars based on the average exchange rate from 1 July 2023 to 30 June 2024.
Mr Miller’s FY24 remuneration relates to his role as CEO C&PI from 4 September 2023.
Mr Rush’s FY24 remuneration relates to his role as CEO Suncorp Bank from 4 December 2023.
Mr Smeaton’s FY24 remuneration relates to his role as COO – Insurance up to 3 September 2023.
Mr van Horen’s FY24 remuneration relates to his role as CEO Suncorp Bank up to 3 December 2023.

76 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Movement in awards under employee equity plans

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Employee equity awards granted [1] Fair value yet to vest
Market value at Vested Forfeited Vested
Number Grant date Min [2] Max [3] date of grant [4] in year in year in year
$ $ $ % % Number
Executive director
S Johnston 77,031 22 October 2020 - 677,873 677,873 - - -
48,738 11 August 2021 - - - 100% - 48,738
101,038 23 September 2021 - 1,249,840 1,249,840 - - -
42,777 8 August 2022 - - - 100% - 42,777
42,777 8 August 2022 - 498,352 498,352 - - -
187,152 19 October 2022 - 1,020,914 1,989,426 - - -
230,867 1 July 2023 - 2,203,346 3,114,396 - - -
39,704 10 August 2023 - 545,136 545,136 - - -
39,703 10 August 2023 - 545,122 545,122 - - -
85,398 10 August 2023 - 1,172,515 1,172,515 - - -
Senior Executives
A Bennett 43,399 1 July 2020 - - - 100% - 43,399
40,655 1 July 2020 - 359,797 359,797 - - -
49,761 1 July 2021 - 546,376 546,376 - - -
17,645 11 August 2021 - - - 100% - 17,645
14,473 8 August 2022 - - - 100% - 14,473
14,473 8 August 2022 - 168,610 168,610 - - -
92,039 19 October 2022 - 502,072 978,375 - - -
77,178 1 July 2023 - 736,574 1,041,131 - - -
13,561 10 August 2023 - 186,193 186,193 - - -
13,560 10 August 2023 - 186,179 186,179 - - -
45,071 10 August 2023 - 618,825 618,825 - - -
L Harrison 28,886 1 July 2020 - 255,641 255,641 - - -
43,699 1 July 2021 - 479,815 479,815 - - -
14,594 11 August 2021 - - - 100% - 14,594
12,859 8 August 2022 - - - 100% - 12,859
12,859 8 August 2022 - 149,807 149,807 - - -
82,274 19 October 2022 - 448,805 874,573 - - -
71,007 1 July 2023 - 677,676 957,884 - - -
12,419 10 August 2023 - 170,513 170,513 - - -
12,419 10 August 2023 - 170,513 170,513 - - -
32,024 10 August 2023 - 439,690 439,690 - - -
J Higgins 1,175 19 August 2020 - - - 100% - 1,175
28,557 15 October 2020 - 255,300 255,300 - - -
36,211 1 July 2021 - 397,597 397,597 - - -
1,446 11 August 2021 - - - 100% - 1,446
1,446 11 August 2021 - 18,509 18,509 - - -
8,620 11 August 2021 - - - 100% - 8,620
10,606 8 August 2022 - - - 100% - 10,606
10,606 8 August 2022 - 123,560 123,560 - - -
65,890 19 October 2022 - 359,430 700,411 - - -
56,047 1 July 2023 - 534,901 756,074 - - -
9,415 10 August 2023 - 129,268 129,268 - - -
9,414 10 August 2023 - 129,254 129,254 - - -
31,660 10 August 2023 - 434,692 434,692 - - -
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Annual Report 2023-24 77

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

6. Contractual arrangements and statutory remuneration (continued)

Movement in awards under employee equity plans (continued)

	Employee equity awardsgranted1	Employee equity awardsgranted1	Fair valueyet to vest	Fair valueyet to vest
					Market value at	Vested	Forfeited	Vested
	Number	Grant date	Min2	Max3	date ofgrant4	inyear	inyear	inyear
			$	$	$	%	%	Number
B Messer	25,874	31 January 2022	-	285,649	285,649	-	-	-
	2,595	8 August 2022	-	-	-	100%	-	2,595
	2,595	8 August 2022	-	30,232	30,232	-	-	-
	60,146	19 October 2022	-	328,096	639,352	-	-	-
	7,435	1 July 2023	-	100,298	100,298	-	-	-
	50,746	1 July 2023	-	484,310	684,564	-	-	-
	6,042	10 August 2023	-	82,957	82,957	-	-	-
	6,041	10 August 2023	-	82,943	82,943	-	-	-
M Miller	1,539 4,548 4,548 4,219 4,217 4,217 52,457 4,353 4,353 4,353	19 August 2020 11 August 2021 11 August 2021 8 August 2022 8 August 2022 8 August 2022 1 July 2023 10 August 2023 10 August 2023 10 August 2023	- - - - - - - - - -	- - 58,169 - 46,851 46,851 500,638 59,767 59,767 59,767	- - 58,169 - 46,851 46,851 707,645 59,767 59,767 59,767	100% 100% - 100% - - - - - -	- - - - - - - - - -	1,539 4,548 - 4,219 - - - - - -
J Robson	32,524 3,588 42,940 14,366 13,192 13,192 80,195 69,520 11,949 11,949 36,057	1 July 2020 19 August 2020 1 July 2021 11 August 2021 8 August 2022 8 August 2022 19 October 2022 1 July 2023 10 August 2023 10 August 2023 10 August 2023	- - - - - - - - - - -	287,837 31,036 471,481 - - 153,687 437,464 663,484 164,060 164,060 495,063	287,837 31,574 471,481 - - 153,687 852,473 937,825 164,060 164,060 495,063	- - - 100% 100% - - - - - -	- - - - - - - - - - -	- - - 14,366 13,192 - - - - - -
B Rush	1,500 3,519 3,519 3,471 3,469 3,469 2,685 2,685 2,685	19 August 2020 11 August 2021 11 August 2021 8 August 2022 8 August 2022 8 August 2022 10 August 2023 10 August 2023 10 August 2023	- - - - - - - - -	- - 45,008 - 38,541 38,541 36,865 36,865 36,865	- - 45,008 - 38,541 38,541 36,865 36,865 36,865	100% 100% - 100% - - - - -	- - - - - - - - -	1,500 3,519 - 3,471 - - - - -

78 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

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Employee equity awards granted [1] Fair value yet to vest
Market value at Vested Forfeited Vested
Number Grant date Min [2] Max [3] date of grant [4] in year in year in year
$ $ $ % % Number
B Speirs 1,287 19 August 2020 - - - 100% - 1,287
15,971 1 December 2020 - 161,786 161,786 - - -
25,574 1 July 2021 - 280,803 280,803 - - -
2,272 11 August 2021 - - - 100% - 2,272
2,272 11 August 2021 - 29,082 29,082 - - -
4,305 11 August 2021 - - - 100% - 4,305
5,390 8 August 2022 - - - 100% - 5,390
5,389 8 August 2022 - 62,872 62,872 - - -
48,144 19 October 2022 - 262,626 511,771 - - -
41,544 1 July 2023 - 396,486 560,429 - - -
7,385 10 August 2023 - 101,396 101,396 - - -
7,384 10 August 2023 - 101,382 101,382 - - -
17,705 10 August 2023 - 243,090 243,090 - - -
F Thompson 27,945 1 July 2020 - 247,313 247,313 - - -
40,415 1 July 2021 - 443,757 443,757 - - -
8,642 11 August 2021 - - - 100% - 8,642
11,761 8 August 2022 - - - 100% - 11,761
11,761 8 August 2022 - 137,016 137,016 - - -
74,770 19 October 2022 - 407,870 794,805 - - -
62,754 1 July 2023 - 598,910 846,551 - - -
10,993 10 August 2023 - 150,934 150,934 - - -
10,992 10 August 2023 - 150,920 150,920 - - -
30,980 10 August 2023 - 425,355 425,355 - - -
Former Senior Executives
P Smeaton 36,764 1 July 2020 - 325,361 325,361 - - -
45,972 1 July 2021 - 504,773 504,773 - - -
16,072 11 August 2021 - - - 100% - 16,072
13,159 8 August 2022 - - - 100% - 13,159
13,158 8 August 2022 - 153,291 153,291 - - -
85,167 19 October 2022 - 233,135 454,305 - 50% -
70,635 1 July 2023 - 113,789 160,828 - 83% -
12,235 10 August 2023 - 167,987 167,987 - - -
12,234 10 August 2023 - 167,973 167,973 - - -
40,759 10 August 2023 - 559,621 559,621 - - -
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Annual Report 2023-24 79

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

6. Contractual arrangements and statutory remuneration (continued)

Employee	equity awardsgranted1	Fair valueyet to vest	Fair valueyet to vest
				Market value at	Vested	Forfeited	Vested
Number	Grant date	Min2	Max3	date ofgrant4	inyear	inyear	inyear
		$	$	$	%	%	Number
C van Horen 7,132 39,099 45,719 14,670 14,057 14,057 84,625 12,302 12,301 43,347	4 August 2020 4 August 2020 1 July 2021 11 August 2021 8 August 2022 8 August 2022 19 October 2022 10 August 2023 10 August 2023 10 August 2023	- - - - - - - - - -	- - - - - - - - - -	- - - - - - - - - -	100% - - 100% 100% - - - - -	- 100% 100% - - 100% 100% 100% 100% 100%	7,132 - - 14,670 14,057 - - - - -

Employee equity awards are the remaining rights on foot for each individual at the start of the financial year and include performance rights and share rights. The fair value per right can be found in note 24.2 to the financial statements.
The minimum value yet to vest is nil since the service condition or performance measure (as applicable) may not be met and consequently the performance rights or share rights may not vest.
The maximum value yet to vest is determined as the fair value at grant date, assuming all performance measures are met.
Market value at date of grant is calculated based on the number of securities granted multiplied by the closing share price as traded on the ASX on the date of grant. Where the date of grant falls on an ASX non-trading day, the closing share price of the preceding trading day is used.

Related party transactions

Loans to KMP and their related parties

Loans to KMP and their related parties are secured housing loans and asset lines provided in the ordinary course of the banking business. All loans have normal commercial terms, which may include employee discounts on the same terms available to all employees of the Suncorp Group. No amounts have been written down or recorded as provisions as the balances are considered fully collectable.

Details regarding loans outstanding at the reporting date to KMP and their related parties are outlined below.

	Opening	Closing	Interest	Interest not
	balance	balance	charged1	charged
FY24	$000	$000	$000	$000
Total for KMP and their relatedparties	1,395	554	48	-

The loans may have offset facilities, in which case the interest charged is after the offset.

The closing balance includes loans issued to executives and their related parties.

	Balance	Balance	Interest	Interest not	Highest
	1 July 2023	30 June 2024	charged1	charged	balance
FY24	$000	$000	$000	$000	$000
Senior Executives
J Higgins	630	554	41	-	630
Former Senior Executives
P Smeaton	-	-	-	-	1
C van Horen	765	-	6	-	765

The loans may have offset facilities, in which case the interest charged is after the offset.

80 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Movement in securities

The movement during the reporting period in the number of securities in the Company held directly, indirectly or beneficially by each executive, including their related parties, is outlined below.

		Balance	Received as	Purchases	Other	Balance
		1 July 2023	remuneration	(sales)	changes1	30 June 2024
1 July 2023 – 30 June 2024		Number	Number	Number	Number	Number
Executive Director2
	Ordinary shares	272,129	91,515	-	-	363,644
S Johnston
	Unvested securities	499,513	395,672	-	(91,515)	803,670
Senior Executives2
	Ordinary shares	43,401	75,517	-	-	118,918
A Bennett
	Unvested securities	272,445	149,370	-	(75,517)	346,298
	Ordinary shares	92,826	27,453	(77,599)	-	42,680
L Harrison
	Unvested securities	195,171	127,869	-	(27,453)	295,587
	Ordinary shares	37,964	21,847	(3,500)	-	56,311
J Higgins
	Unvested securities	164,557	106,536	-	(21,847)	249,246
	Ordinary shares	-	2,595	-	-	2,595
B Messer
	Unvested securities	91,210	70,264	-	(2,595)	158,879
	Ordinary shares	-	10,306	-	-	10,306
M Miller
	Unvested securities	23,288	65,516	-	(10,306)	78,498
	Ordinary shares	61,776	27,558	-	-	89,334
J Robson
	Unvested securities	199,997	129,475	-	(27,558)	301,914
	Ordinary shares	31,115	8,490	-	-	39,605
B Rush
	Unvested securities	18,947	8,055	-	(8,490)	18,512
	Ordinary shares	31,502	13,254	(42,000)	-	2,756
B Speirs
	Unvested securities	110,604	74,018	-	(13,254)	171,368
	Ordinary shares	73,771	20,403	-	-	94,174
F Thompson
	Unvested securities	175,294	115,719	-	(20,403)	270,610
Former Senior Executives2
	Ordinary shares	118,112	29,231	(20,015)	-	127,328
P Smeaton
	Unvested securities	210,292	135,863	-	(130,373)	215,782
	Ordinary shares	-	35,859	-	(35,859)	-
C van Horen
	Unvested securities	219,359	67,950	-	(287,309)	-

Executives of the Company and their related parties received normal distributions on these securities.

Other changes in unvested securities relate to equity awards that vested or were forfeited during FY24.

Unvested securities for the Executive Director, Senior Executives and Former Senior Executives refer to the performance rights granted under the LTI Plan and share rights granted as part of the STI award or Share Rights Plan (as applicable). Accordingly, beneficial entitlement of those unvested securities remains subject to satisfaction of specified service conditions and performance measures (as applicable).

Annual Report 2023-24 81

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

6. Contractual arrangements and statutory remuneration (continued)

Non-Executive Director statutory remuneration

	Year Short-term benefts Post-employment benefts Total
	Salary and fees Non-monetary benefts Superannuation – Statutory Superannuation – Other1 $000 $000 $000 $000 $000
Non-executive directors
Christine McLoughlin, AM Chairman	2024 600 - 27 39 666 2023 600 - 25 38 663
Gillian Brown2 Director	2024 84 - 8 - 92 2023 - - - - -
Sylvia Falzon Director	2024 324 - 27 8 359 2023 324 - 25 9 358
Elmer Funke Kupper Director	2024 289 - 27 4 321 2023 280 - 25 4 309
Ian Hammond Director	2024 319 - 27 8 354 2023 310 - 25 7 342
Sally Herman, OAM Director	2024 302 - 27 6 335 2023 300 - 25 6 331
Simon Machell Director	2024 279 - 27 3 310 2023 280 - 25 4 310
Lindsay Tanner Director	2024 345 - 27 12 385 2023 323 - 25 9 357
Duncan West Director	2024 301 - 27 6 334 2023 280 - 25 4 309
Former Non-executive directors
Douglas McTaggart3 Director	2024 151 - 4 - 156 2023 345 - 25 11 381

Superannuation in excess of the MCB is delivered in the form of fees. Non-executive directors may elect to make voluntary additional superannuation contributions.

Ms Brown’s FY24 fees reflect time served from 27 February 2024.

Dr McTaggart’s FY24 fees reflect time served up to his retirement on 14 December 2023.

82 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Movement in securities

The movement during the reporting period in the number of securities in the Company held directly, indirectly or beneficially by each non-executive director, including their related parties, is outlined below.

		Balance	Purchases	Other	Balance
		1 July 2023	(sales)	changes1	30 June 2024
1 July 2023 – 30 June 2024		Number	Number	Number	Number
Non-executive directors
C McLoughlin, AM	Ordinaryshares	52,550	-	-	52,550
	SUNPH Capital Notes	700	-	-	700
G Brown	Ordinaryshares	481	-	-	4812
S Falzon	Ordinaryshares	31,913	-	379	32,292
E Funke Kupper	Ordinaryshares	47,500	-	-	47,500
I Hammond	Ordinaryshares	45,574	-	1,935	47,509
S Herman, OAM	Ordinaryshares	45,000	-	-	45,000
S Machell	Ordinaryshares	60,000	-	-	60,000
L Tanner	Ordinaryshares	20,068	-	-	20,068
D West	Ordinaryshares	24,680	-	-	24,680
Former Non-executive directors
D McTaggart	Ordinaryshares	46,607	-	(46,607)	N/A

Other changes in ordinary shares relate to dividend plan allotments as part of the Dividend Reinvestment Plan during FY24. D McTaggart’s balance reduced to nil as a result of his retirement from the Board during the financial year.
Ms Brown joined the Board on 27 February 2024 and has two years to acquire a Suncorp shareholding of 50% of her Board Member fee.

Directors and executives of the Company and their related parties received normal distributions on these securities.

Other KMP transactions

Financial instrument transactions

Financial instrument transactions (other than loans and shares disclosed within this report) between the Suncorp Group and executives and their related parties during the financial year were in the nature of normal personal banking, investment and deposit transactions. These transactions were on arm’s length terms and conditions no more favourable than those given to other Suncorp Group employees and are deemed trivial or domestic in nature.

Transactions other than financial instrument transactions

No director or Senior Executive has entered into a material contract with the Company or Suncorp Group since the end of the previous financial year and there were no material contracts involving directors’ interests existing at year-end. Other transactions with executives and their related parties are conducted on arm’s length terms and conditions that are no more favourable than those given to other Suncorp Group employees and are deemed trivial or domestic in nature. These transactions are in the nature of personal investment, general insurance and life insurance policies.

Directors’ signatures to the Directors’ Report

Signed in accordance with a resolution of the Board of Directors:

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Christine McLoughlin, AM

Chairman

19 August 2024

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Steve Johnston

Group Chief Executive Officer and Managing Director 19 August 2024

Annual Report 2023-24 83

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Suncorp Group Limited and subsidiaries ABN 66 145 290 124

Consolidated financial report

For the financial year ended 30 June 2024

Consolidated statement of comprehensive income	85
Consolidated statement of fnancial position	86
Consolidated statement of changes in equity	87
Consolidated statement of cash fows	88
Notes to the consolidated fnancial statements	89
Overview
1. Reporting entity	90
2. Basis of preparation	90
Financial performance
3. Segment reporting	94
4. Income tax	96
5. Earnings per share	98
Insurance activities
6. Insurance revenue	99
7. Net insurance fnancial result	99
8. Insurance and reinsurance contracts	100
Investment and fnancial instruments
9. Trading and investment securities	110
10. Derivative fnancial instruments	111
11. Financial instruments, master netting
and transfer of fnancial assets	112
Capital structure
12. Share capital	115
13. Reserves	116
14. Dividends	117
15. Loan capital	117
16. Group capital management	119

Risk management

Risk management
17. Risk management	120
18. Insurance risk management	121
19. Financial risk management	122
Group structure and consolidation
20. Parent entity and composition of the Group	127
21. Goodwill and other intangible assets	129
Other disclosures
22. Notes to the consolidated
statement of cash fows	131
23. Employee benefts	132
24. Share-based payments	133
25. Key management personnel and
related party disclosures	136
26. Commitments	137
27. Sale of Suncorp Bank	137
28. Provisions and employee beneft liabilities	144
29. Contingent assets and liabilities	146
30. Auditors’ remuneration	149
31. Subsequent events	149
Consolidated entity disclosure statement	150
Directors’ Declaration	153
Independent Auditor’s Report to the
Shareholders of Suncorp Group Limited	154

84 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Consolidated statement of comprehensive income

For the financial year ended 30 June 2024

		Restated
	2024	2023
	Note $M	$M
Insurance revenue	6 13,697	12,081
Insurance service expense	8.1.1 (11,321)	(11,343)
Reinsurance premium expense	8.1.2 (1,514)	(1,422)
Reinsurance recoveries	8.1.2 135	1,477
Insurance service result	997	793
Insurance investment income	7 1,024	608
Insurance fnance expense	7 (373)	(156)
Reinsurance fnance income	7 58	31
Net insurance fnancial result	7 1,706	1,276
Net gains on fnancial assets and liabilities at fair value through proft or loss from non-insurance activities	10	1
Fees and other income	110	119
Fees, overheads and other expenses	(190)	(193)
Amortisation and depreciation expense	(236)	(203)
Proft before income tax	3.2 1,400	1,000
Income tax expense	4.1 (429)	(297)
Proft after tax from continuing operations	971	703
Proft after tax from discontinued operation – SuncorpBank	27.1 258	379
Proft for the fnancialyear	1,229	1,082
Proft for the fnancial year attributable to:
Owners of the Company	1,197	1,071
Non-controllinginterests	32	11
Other comprehensive income
*Items that may be reclassifed subsequently to proft or loss*
Net change in fair value of held-for-sale fnancial assets	13 77	(37)
Exchange diferences on translation of foreign operations	13 (6)	12
Related income tax(expense)beneft	(23)	7
*Items that will not be reclassifed subsequently to proft or loss*
Actuarial gains on defned beneft plans	6	4
Net change in equity investments at fair value through other comprehensive income	13 -	(6)
Related income tax(expense)beneft	(2)	5
Total other comprehensive income(loss)	52	(15)
Total comprehensive income for the fnancialyear	1,281	1,067
Total comprehensive income for the fnancial year attributable to:
Owners of the Company	1,249	1,056
Non-controllinginterests	32	11
Earnings per share	Cents	Cents
Basic earnings per share	5 94.39	84.82
Diluted earnings per share	5 93.64	82.85
Basic earnings per share from continuing operations	5 74.05	54.81
Diluted earningsper share from continuingoperations	5 74.05	54.79

The consolidated statement of comprehensive income is to be read in conjunction with the accompanying notes.

Comparative information has been restated to reflect the Group’s adoption of AASB 17 Insurance Contracts from 1 July 2023 and adjusted for discontinued operation – Suncorp Bank as detailed in note 2.3 and 27, respectively.

Annual Report 2023-24 85

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Consolidated statement of financial position

As at 30 June 2024

		Restated	Restated
	2024	2023	1 July 2022
	Note $M	$M	$M
Assets
Cash and cash equivalents	734	3,908	1,418
Receivables due from other banks	-	1,788	2,490
Trading securities	9 -	2,218	2,722
Assets held for sale – Suncorp Bank	27.2 85,166	-	-
Derivatives	10 81	606	741
Investment securities	9 18,147	23,049	20,957
Loans and advances	-	67,102	61,856
Insurance contract assets	8.1.1 180	180	174
Reinsurance contract assets	8.1.2 1,158	1,995	2,525
Property, plant and equipment	484	604	712
Deferred tax assets	4.3 208	377	592
Goodwill and other intangible assets	21 5,006	5,294	5,268
Other assets	546	916	749
Total assets	111,710	108,037	100,204
Liabilities
Payables due to other banks	-	121	165
Deposits	-	51,178	47,875
Liabilities directly associated with assets held for sale – Suncorp Bank	27.2 79,614	-	-
Derivatives	10 75	682	783
Payables and other liabilities	2,538	3,071	1,913
Insurance contract liabilities	8.1.1 12,542	12,583	12,384
Provisions and employee beneft liabilities	28 483	464	537
Deferred tax liabilities	4.3 49	51	172
Borrowings	-	24,009	20,910
Loan capital	15 2,525	2,544	2,622
Total liabilities	97,826	94,703	87,361
Net assets	13,884	13,334	12,843
Equity
Share capital	12 12,469	12,384	12,325
Reserves	13 (11)	(46)	(28)
Retainedprofts	1,386	962	516
Total equity attributable to owners of the Company	13,844	13,300	12,813
Non-controllinginterests	40	34	30
Total equity	13,884	13,334	12,843

The consolidated statement of financial position is to be read in conjunction with the accompanying notes.

Comparative information has been restated to reflect the Group’s adoption of AASB 17 Insurance Contracts from 1 July 2023 as detailed in note 2.3. In accordance with AASB 5 Non-Current Assets Held for Sale and Discontinued Operations , comparatives have not been restated for the Suncorp Bank sale.

86 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Consolidated statement of changes in equity

For the financial year ended 30 June 2024

Note	Equity attributable to owners of the Company Share capital $M Reserves $M Retained profts $M Total $M Non-controlling interests $M Total equity $M
Balance as at 1 July 2022, as previously reported	12,325 (28) 456 12,753 30 12,783
Adjustment on initial application of AASB 17, net of tax	- - 60 60 - 60
Restated balance as at 1 July 2022	12,325 (28) 516 12,813 30 12,843
Proft for the fnancial year Other comprehensive (loss) income for the fnancialyear	- - 1,071 1,071 11 1,082 - (18) 3 (15) - (15)
Restated total comprehensive (loss) income for the fnancialyear	- (18) 1,074 1,056 11 1,067
Transactions with owners, recorded directly in equity Dividends paid 14 Shares issued 12 Share-based payments 12 Treasury share movements 12 Other movements	- - (632) (632) (7) (639) 48 - - 48 - 48 10 - - 10 - 10 1 - - 1 - 1 - - 4 4 - 4
Restated balance as at 30 June 2023	12,384 (46) 962 13,300 34 13,334
Proft for the fnancial year Other comprehensive income for the fnancialyear	- - 1,197 1,197 32 1,229
	- 48 4 52 - 52
Total comprehensive income for the fnancialyear	- 48 1,201 1,249 32 1,281
*Transactions with owners,* *recorded directly in equity* Dividends paid 14 Shares issued 12 Share-based payments 12 Treasury share movements 12 Transfers Other movements
	- - (774) (774) (26) (800)
	82 - - 82 - 82
	5 - - 5 - 5
	(13) - - (13) - (13)
	- (13) 13 - - -
	11 - (16) (5) - (5)
Balance as at 30 June 2024	12,469 (11) 1,386 13,844 40 13,884

The consolidated statement of changes in equity is to be read in conjunction with the accompanying notes.

Comparative information has been restated to reflect the Group’s adoption of AASB 17 Insurance Contracts from 1 July 2023 as detailed in note 2.3.

Annual Report 2023-24 87

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Consolidated statement of cash flows

For the financial year ended 30 June 2024

			Restated
		2024	2023
	Note	$M	$M
Cash fows from operating activities
Premiums received		16,233	14,445
Insurance acquisition costs paid		(2,223)	(1,895)
Claims and insurance service expenses paid		(11,070)	(10,947)
Interest received		4,698	3,353
Interest paid		(2,838)	(1,506)
Reinsurance recoveries received		1,415	2,239
Reinsurance premiums paid		(1,814)	(1,560)
Fees and other operating income received		318	281
Dividends and trust distributions received		57	46
Fees and operating expenses paid		(1,945)	(1,864)
Income tax paid		(360)	(333)
Changes in operating assets and liabilities arising from cash fow movements
Trading securities		66	505
Loans and advances		(2,617)	(5,192)
Deposits		2,577	3,303
Net cash from operating activities	22.1	2,497	875
Cash fows used in investing activities
Proceeds from the sale or maturity of investment securities		29,954	19,429
Payments for acquisition of investment securities		(34,228)	(20,403)
Payments for other investingactivities		(376)	(273)
Net cash used in investing activities		(4,650)	(1,247)
Cash fows (used in) from fnancing activities
Proceeds from borrowings	22.2	24,259	20,964
Repayment of borrowings, including transaction costs	22.2	(23,867)	(18,185)
Proceeds from issue of loan capital, including transaction costs	22.2	760	248
Payment on call of loan capital, including transaction costs	22.2	(786)	(330)
Proceeds from other fnancing activities		119	181
Payments for other fnancing activities		(126)	(88)
Dividendspaid		(692)	(584)
Net cash(used in) from fnancing activities		(333)	2,206
Net (decrease) increase in cash and cash equivalents		(2,486)	1,834
Cash and cash equivalents at the beginning of the fnancial year		5,575	3,743
Efect of exchange rate fuctuations on cash held		8	(2)
Cash and cash equivalents at the end of the fnancialyear1		3,097	5,575

The consolidated statement of cash flows is to be read in conjunction with the accompanying notes and is inclusive of cash flows pertaining to discontinued operation – Suncorp Bank (refer to note 27.3).

Comparative information has been re-presented to reflect the Group’s adoption of AASB 17 Insurance Contracts from 1 July 2023 as detailed in note 2.3.

Includes $739 million (2023: $1,788 million) of receivables due from other banks and $118 million (2023: $121 million) of payables due to other banks pertaining to discontinued operation – Suncorp Bank. Current year balances have been classified to held for sale (refer to note 27.2).

88 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS SHAREHOLDER INFORMATION

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

Overview

Suncorp Group Limited (SGL, the Company) is listed on the Australian Securities Exchange (ASX) and is a for-profit entity. The Company and its subsidiaries (referred to as the “Group” or “Suncorp”) offer insurance products and services through some of Australia’s and New Zealand’s most recognisable brands.

The financial report includes information that is considered most relevant to the users’ understanding of the operations, financial position and performance of the Group.

Information in the notes to the consolidated financial statements is only included if it is material and relevant to the understanding of the consolidated financial statements and results of the Group. Information is considered material and relevant if:

Ά the amount is significant in size or nature
Ά it is essential to understanding the Group’s results
Ά it is critical in explaining significant changes in the Group’s business operations
Ά it relates to an aspect of the Group’s operations that is important to its future performance
Ά it is required under the relevant reporting and legislative frameworks applied by the Group.

Sale of Suncorp Bank

The sale of Suncorp Bank to ANZ completed subsequent to end of financial year on 31 July 2024. A timeline of the sale of Suncorp Bank and its disclosure in the financial statements has been included in note 27.

On completion date, in accordance with the SPA, related Restructure Agreement and Hardware Purchase Agreement, the Group and Suncorp Bank restructured by transferring certain agreements, securities and assets (collectively referred to as “items”) required to complete the sale. The items and the corresponding accounting balances were transferred at their respective carrying values, resulting in nil impact on the net asset position of the Group at the point of transfer.

The items include:

Ά Suncorp Bank’s dedicated software assets, hardware assets, employment agreements and the corresponding liabilities transferred from Suncorp Group to Suncorp Bank; and
Ά Dormant and non-core entities transferred from Suncorp Bank to Suncorp Group (refer to the consolidated entity disclosure statement).

In connection with the Restructure Agreement, intellectual property rights were assigned to and from Suncorp Group and Suncorp Bank.

In addition to the above, intercompany balances with Suncorp Bank were settled on or immediately prior to completion date (refer to note 27). In accordance with the SPA, ANZ also acquired the internal loan capital from Suncorp Group.

In connection with the sale, Suncorp Group has entered into the following agreements with Suncorp Bank to receive and provide (as specified below) various services and access to trade marks post completion date (collectively referred to as “Service agreements”):

Ά Transitional services agreement (TSA) (Suncorp Group to provide);
Ά Transitional trade mark license agreement (Suncorp Group to provide); and
Ά Banking services agreement (Suncorp Group to receive).

On completion date, Suncorp Bank exited the SGL tax-consolidated group and joined the ANZ tax-consolidated group (refer to note 4).

Sale of Asteron Life

The sale is subject to regulatory approval from the Reserve Bank of New Zealand (RBNZ) and the sale is expected to be and the sale is expected to complete around end of January 2025.

In accordance with AASB 5 Non-Current Assets Held for Sale and Discontinued Operations (AASB 5), the sale of Asteron Life does not meet the criteria to be classified as held for sale in the consolidated statement of financial position (SoFP) as at 30 June 2024.

Annual Report 2023-24 89

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CORPORATE GOVERNANCE

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

1. Reporting entity

The Company is a public company domiciled in Australia. Its registered office is at Level 23, 80 Ann Street, Brisbane, Qld, 4000. The consolidated financial statements for the financial year ended 30 June 2024 comprise the Company and its subsidiaries and were authorised for issue by the SGL Board of Directors (the Board) on 19 August 2024.

2. Basis of preparation

The Group’s consolidated financial statements have been prepared on a historical cost basis, unless the application of fair value measurements is required by the relevant accounting standards.

These consolidated financial statements are presented in Australian dollars, which is the Company’s functional and presentation currency. As the Company is of a kind referred to in Australian Securities and Investments Commission (ASIC) Corporations (Rounding in Financial/ Directors’ report) Instrument 2016/191 , all financial information presented has been rounded to the nearest million dollars, unless otherwise stated.

The consolidated SoFP position is prepared with assets and liabilities presented in the order of liquidity. In the notes to the consolidated financial statements, amounts expected to be recovered or settled no more than 12 months after the reporting period are classified as ‘current’, otherwise they are classified as ‘non-current’.

Where necessary, comparatives have been re-presented to conform to changes in presentation in the current financial year. This includes:

Ά Changes due to the classification of Suncorp Bank as a discontinued operation and a disposal group held-for-sale in accordance with AASB 5. For details on the sale of the Suncorp Bank, refer to note 27.
Consolidated statement of comprehensive income (SoCI): Comparatives are restated to show discontinued operations separately from continuing operations in a separate line item “Profit after tax from discontinued operation – Suncorp Bank”.
Consolidated SoFP: Comparatives are not restated when a disposal group is classified as held-for-sale.
Financial assets disclosed in following notes continue to be measured in accordance with AASB 9 F inancial Instruments as required by AASB 5 and are not restated.
Ά Trading and investment securities (refer to note 9)
Ά Financial instruments (refer to note 9 and note 10)
Other disclosures where comparatives have been restated include Note 5 “Earnings per share” and Note 23 “Employee benefits”.
Ά The adoption of AASB 17 Insurance Contracts from 1 July 2023 introduced significant changes to the presentation and disclosures of the financial statements. Refer to note 2.3 and the Insurance activities section for further details. Comparatives are restated in below financial statements and notes resulting from adoption of the standard.
Primary financial statements: SoCI, SoFP and the statement of changes in equity and statement of cash flows.
Segment reporting (refer to note 3)
Income tax (refer to note 4)
Earnings per share (refer to note 5)
All notes in the Insurance activities section
Reserves (refer to note 13)
Group capital management (refer to note 16)
Credit risk (refer to note 19.1)
Goodwill and other intangible assets (refer to note 21)
Provision and employee benefit liabilities (refer to note 28)

90 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

2.1 Statement of compliance

The consolidated financial statements are general purpose financial statements which have been prepared in accordance with Australian Accounting Standards (including Australian Interpretations) adopted by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001 (Corporations Act). The consolidated financial statements comply with International Financial Reporting Standards and Interpretations issued by the International Accounting Standards Board (IASB).

New and amended Australian Accounting Standards adopted during the period that have a material impact on the Group are detailed in note 2.3. All accounting policies applied by the Group in the consolidated financial statements are the same as those applied in its consolidated financial statements for the financial year ended 30 June 2023, unless otherwise stated.

2.2 Foreign currency

Transactions, assets and liabilities denominated in foreign currencies are translated into Australian dollars using the following applicable exchange rates:

Foreign currency	Applicable exchange rate
Transactions Monetary assets and liabilities Non-monetary assets and liabilities measured at historical cost Non-monetary assets and liabilities measured at fair value Assets and liabilities of foreign operations	Exchange rate at date of transaction Exchange rate at reporting date Exchange rate at date of transaction Exchange rate at date fair value is determined Exchange rate at reporting date
Income and expenses of foreign operations	Approximate exchange rate applicable at the dates of the transactions

Foreign exchange gains and losses resulting from translation of monetary items are recognised as revenue or expenses, except for qualifying cash flow hedges, which are deferred to equity reserves and are recognised in other comprehensive income (OCI). Foreign exchange differences arising on translation of assets, liabilities, income and expenses of foreign operations are recognised in OCI and presented in the foreign currency translation reserve, part of ‘Reserves’ in the consolidated SoFP.

2.3 New Australian accounting standards adopted by the Group

As at the date of this financial report, there are several new or revised accounting standards published by the AASB that will be mandatory in future financial years. The new or revised accounting standard that is expected to have a material impact on the Group’s consolidated financial statements is set out below.

AASB 17 Insurance contracts

AASB 17 Insurance Contracts (AASB 17) is a new accounting standard for all types of insurance contracts and replaces AASB 4 Insurance Contracts , AASB 1023 General Insurance Contracts (AASB 1023) and AASB 1038 Li fe Insurance Contracts (AASB 1038). AASB 17 is effective for the Group’s consolidated financial statements for the reporting period beginning 1 July 2023.

AASB 17 is to be applied retrospectively to all insurance contracts on the transition date unless it is impractical to do so, in which case a modified retrospective or fair value approach may be applied. The Group has applied the full retrospective approach for general insurance contracts and majority of life insurance contracts. Due to the long-term nature of the life insurance business, not all the required information is available to do a full retrospective approach in all circumstances. Accordingly, the Group has used the fair value approach.

The adoption of AASB 17 has resulted in an increase in equity/net assets at 1 July 2022 of $60 million after tax. This amount was recognised as an adjustment to the opening balance of retained profits as shown in the consolidated statement of changes in equity.

Annual Report 2023-24 91

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CORPORATE GOVERNANCE

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

Impact of adopting AASB 17 on the consolidated SoFP as at 1 July 2022

AASB 1023/ AASB 1038 Relevant line items only $M	Reclassif- cations1 Risk adjust- ment2 Changes in discount- ing3 Loss compo- nent4 Changes in deferred acquisition costs5 Others6 Tax impact7 Life NZ adjust- ments8 AASB 17 balance $M $M $M $M $M $M $M $M $M
Assets Cash and cash equivalents 1,418 Receivables due from other banks 2,490 Trading securities 2,722 Derivatives 741 Investment securities 20,957 Premiums outstanding 3,173 Loans and advances 61,856 Insurance contract assets - Reinsurance contract assets - Reinsurance and other recoveries 3,212 Deferred reinsurance assets 1,152 Deferred acquisition costs 796 Property, plant and equipment 712 Deferred tax assets 592 Goodwill and other intangible assets 5,282 Other assets 1,275
	- - - - - - - - 1,418
	- - - - - - - - 2,490
	- - - - - - - - 2,722
	- - - - - - - - 741
	- - - - - - - - 20,957
	(3,172) - - - - - - (1) -
	- - - - - - - - 61,856
	- - - - - - - 174 174
	2,353 145 (17) - - (3) - 47 2,525
	(3,136) - - - - - - (76) -
	(1,152) - - - - - - - -
	(796) - - - - - - - -
	- - - - - - - - 712
	- - - - - - - - 592
	- - - - - (14) - - 5,268
	(440) - - - - - - (86) 749
Total assets 106,378	(6,343) 145 (17) - - (17) - 58 100,204
Liabilities Payables due to other banks 165 Deposits 47,875 Derivatives 783 Amounts due to reinsurers 1,119 Payables and other liabilities 1,741 Insurance contract liabilities - Unearned premium liabilities 6,024 Provisions and employee beneft liabilities 537 Outstanding claims liabilities 11,692 Deferred tax liabilities 127 Borrowings 20,910 Loan capital 2,622
	- - - - - - - - 165
	- - - - - - - - 47,875
	- - - - - - - - 783
	(1,117) - - - - - - (2) -
	26 - - - - - - 146 1,913
	12,300 (388) (65) 55 25 - 457 12,384
	(6,023) - - - - - - (1) -
	- - - - - - - - 537
	(11,529) - - - - - - (163) -
	- - - - - - 145 (100) 172
	- - - - - - - - 20,910
	- - - - - - - - 2,622
Total liabilities 93,595	(6,343) (388) (65) 55 25 - 145 337 87,361
Net assets 12,783	- 533 48 (55) (25) (17) (145) (279) 12,843

The opening balances have been reclassified to comply with the presentation and disclosure requirements of AASB 17.
The adjustment represents the net impact from the derecognition of Risk Margin recorded under AASB 1023, which was measured at 90% probability of adequacy (PoA), and the recognition of Risk Adjustment as required by AASB 17 on liabilities for incurred claims and assets for incurred claims measured at 75% PoA.
The adjustment is driven by the introduction of 30 basis points of Illiquidity premium as per AASB 17 to the discount rates used for discounting the insurance contract liabilities and reinsurance contract assets.
This adjustment includes the recognition of loss component on the onerous contracts and the corresponding loss recovery component from reinsurance contracts. The loss component is computed on the AASB 17 portfolio level.
The insurance contract liabilities under AASB 17 are presented net of deferred acquisition costs (DAC). DAC transition impact relates to the exclusion of non-directly attributable expenses (NDAEs) under AASB 17. NDAEs are primarily corporate costs for projects not related to insurance contracts, corporate development, and remediation.
Other adjustments represent the derecognition of the Outstanding Claims Liabilities and the customer contract intangible assets at the transition date. These would not have been recognised if AASB 17 was effective at the transition date due to the recognition of non-performance risk as required by AASB 17.
Tax impact of all the other measurement related adjustments with corresponding impacts posted to opening deferred tax liabilities.
For the New Zealand life insurance business, the impact upon transition is largely driven by accelerated amortisation of DAC and shorter contract boundaries.

92 Annual Report 2023-24

REMUNERATION REPORT FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

Tax impacts

Current tax law in Australia has been amended during the period to align with AASB 17. As a result, the current tax liability, income tax expense and deferred tax balances are prepared on the basis of the law as enacted as at 30 June 2024.

The current income tax settings in New Zealand (NZ) for insurance have largely not changed for NZ International Financial Reporting Standards 17 (NZ IFRS 17). However, there has been legislative change to align the income tax treatment of outstanding claims reserves to the treatment under NZ IFRS 17. Otherwise, differences between the income tax treatment and NZ IFRS 17 give rise to a temporary difference.

2.4 Use of estimates and judgements

The preparation of consolidated financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the amounts reported in the consolidated financial statements. Significant estimates, judgements and assumptions are included in the following notes:

Ά Income tax (refer to note 4).
Ά Measurement of insurance and reinsurance contracts (refer to note 8).
Ά Valuation of financial instruments carried at fair value (refer to note 11.1).
Ά Impairment of goodwill and other intangible assets (refer to note 21.1).
Ά Estimated gain on sale of Suncorp Bank disclosure (refer to note 27).
Ά Provision for impairment on financial assets from discontinued operation – Suncorp Bank (refer to note 27.4).
Ά Provisions and employee benefit liabilities (refer to note 28).
Ά Contingent liabilities (refer to note 29).

Annual Report 2023-24 93

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OVERVIEW

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CORPORATE GOVERNANCE

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

Financial performance

This section provides an analysis of the Group’s financial performance by business segments, its tax breakdown and earnings per share.

The Group comprises three core businesses – Commercial Insurance, Consumer & Personal Injury, and Suncorp New Zealand. The Group earns its revenue from providing a broad range of insurance products and services to retail, corporate and commercial customers in Australia and New Zealand.

3. Segment reporting

Operating segments are identified based on separate financial information which is regularly reviewed by the Group’s Chief Operating Decision Maker (CODM), represented by the Group Chief Executive Officer and Managing Director (Group CEO and MD) and his Executive Leadership Team (ELT), in assessing performance and determining the allocation of resources.

3.1 Operating segments

On 9 August 2023, the Group announced changes in the operating model to the market. Effective from September 2023, ‘Insurance Australia’ was split into two new reportable segments: ‘Consumer Insurance’ and ‘Commercial & Personal Injury’. Suncorp Bank was classified as a disposal group held for sale and as a discontinued operation effective 30 June 2024 in the current financial year. Refer to note 27 for details on the sale of Suncorp Bank.

The Group comprises the following ongoing operating segments:

Reportable segments	Segment information
Consumer Insurance Commercial & Personal Injury Suncorp New Zealand	Ά Provision of insurance products to customers in Australia including home and contents, motor and boat. Ά Provision of insurance products to customers in Australia including commercial motor, commercial property, marine, industrial special risks, public liability and professional indemnity, workers’ compensation and compulsory third party. Ά Provision of general and life insurance products to customers in New Zealand. Ά Key products include home and contents, motor, commercial property, public liability and professional indemnity, life, trauma, total and permanent disablement and income protection.
Corporate & Internal	Ά Investment of the Group’s capital, Suncorp Group business strategy activities (including business combinations,
Reinsurance	divestments and internal reinsurance) and Suncorp Group shared services.

Only profit or loss information is reviewed by the CODM at an operating segment level.

Segment results presented below are measured on a consistent basis to how they are reported to the CODM:

Ά Revenues and expenses occurring between segments are subject to contractual agreements between the legal entities comprising each segment.
Ά Inter-segment transactions, which are eliminated on consolidation, are reported on a gross basis. An exception exists for operating expenses incurred by one segment on behalf of another, which are recharged on a cost-recovery basis, and are presented on a net basis (post allocation basis).
Ά Intra-group dividends are presented net of eliminations.
Ά Consolidated gain or loss on sale of subsidiaries and joint ventures and any amortisation of material business combination acquired intangible assets are allocated to the corporate segment.
Ά Amortisation and depreciation expenses relating to the corporate segment’s property, plant, equipment and non-business combination acquired intangible assets are allocated to other segments based on their utilisation.

94 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS SHAREHOLDER INFORMATION

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

					Corporate
	Consumer	Commercial &	Suncorp Bank	Suncorp	& Internal
	Insurance	Personal Injury	(discontinued)	New Zealand	Reinsurance	Total
	$M	$M	$M	$M	$M	$M
2024
External revenue	7,897	4,376	4,384	2,721	40	19,418
Inter-segment revenue	-	-	-	-	112	112
Total segment revenue	7,897	4,376	4,384	2,721	152	19,530
Segment proft (loss) before income tax	605	543	541	292	(213)	1,768
Segment income tax (expense) beneft	(181)	(162)	(162)	(79)	45	(539)
Segment proft(loss) after income tax	424	381	379	213	(168)	1,229
Other segment disclosures
Interest revenue	268	242	4,207	68	27	4,812
Interest expense	(28)	(25)	(2,839)	(5)	(74)	(2,971)
Amortisation and depreciation expense	(73)	(29)	(57)	(30)	(47)	(236)
Impairment expense on fnancial assets	-	-	(13)	-	-	(13)
Goodwill	2,287	1,892	262	280	-	4,721
2023
(Restated)1
External revenue	6,797	3,928	3,258	3,551	47	17,581
Inter-segment revenue	-	-	-	19	105	124
Total segment revenue	6,797	3,928	3,258	3,570	152	17,705
Segment proft (loss) before income tax	283	626	671	119	(158)	1,541
Segment income tax(expense)beneft	(83)	(183)	(201)	(37)	45	(459)
Segment proft(loss) after income tax	200	443	470	82	(113)	1,082
Other segment disclosures
Interest revenue	197	185	3,075	46	22	3,525
Interest expense	(21)	(19)	(1,667)	(4)	(55)	(1,766)
Amortisation and depreciation expense	(62)	(24)	(67)	(24)	(26)	(203)
Impairment expense on fnancial assets	-	-	(17)	-	-	(17)
Goodwill	2,287	1,892	262	280	-	4,721

Comparative information has been restated to reflect the Group’s adoption of AASB 17 from 1 July 2023 and the changes in goodwill allocations to reflect the new operating segments.

3.2 Reconciliation of reportable segment revenue and profit before tax

	2024 2023 2024 2023
	Revenue Proft before income tax $M $M $M $M
Segment total Attributable to discontinued operation – Suncorp Bank Inter-segment revenue – Internal reinsurance Transaction and separation costs – Sale of Suncorp Bank Other consolidation eliminations	19,530 17,705 1,768 1,541 (4,384) (3,258) (541) (660) (112) (124) - - - - 173 119 - (6) - -
Consolidated total	15,034 14,317 1,400 1,000

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CORPORATE GOVERNANCE

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

4. Income tax

4.1 Income tax expense

4.1 Income tax expense
	Restated
2024	2023
$M	$M
Reconciliation of prima facie to actual income tax expense Proft before tax from continuing operations 1,400 Proft before tax from discontinued operation – SuncorpBank 368	1,000 541
Proft before income tax 1,768	1,541
Prima facie domestic corporate tax rate of 30% (2023: 30%) 530 Efect of tax rates in foreign jurisdictions (6) Tax efect of: Non-deductible expenses 23 Non-deductible expenses – Life companies - Amortisation of intangible assets 4 Dividend adjustments 23 Tax exempt revenues 1 Current year rebates and credits (27) Utilisation of previously unrecognised capital losses (5) Prior year over provision - Other (4)	462 (2) 16 2 4 6 (2) (11) (12) (4) -
Total income tax expense on pre-tax proft 539 Total income tax expense on pre-tax proft from continuing operations 429 Total income tax expense onpre-taxproft from discontinued operation – SuncorpBank 110	459 297 162
Efective tax rate from continuing operations 30.6% Total efective tax rate 30.5%	29.7% 29.8%
Income tax expense recognised in proft consists of: Current tax expense(beneft)
Current tax movement 510 Current year rebates and credits (27) Adjustments for prior fnancial years 23	371 (11) (7)
Total current tax expense 506	353
Deferred tax expense (beneft) Origination and reversal of temporary diferences 56 Adjustments for prior fnancial years (23)	103 3
Total deferred tax expense 33	106
Total income tax expense 539	459

The effective tax rate of 30.5% (2023: 29.8%) has increased relative to the prior comparative period and is consistent with the Australian corporate tax rate of 30%.

Several factors contributed to an effective tax rate of 30.6% (2023: 29.7%) from continuing operations. The most significant factor is interest expense relating to certain convertible instruments which is not deductible for income tax purposes.

96 Annual Report 2023-24

REMUNERATION REPORT FINANCIAL STATEMENTS SHAREHOLDER INFORMATION

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

New Zealand

In New Zealand, a corporate tax rate of 28% (2023: 28%) applies.

4.2 Current tax receivables and liabilities

	2024	2023
	$M	$M
Net current tax receivable at the beginning of the fnancial year	22	42
Income tax paid net of refunds	360	333
Current year tax on operating proft	(483)	(360)
Adjustment for prior fnancial years	(23)	7
Net current tax (liability) receivable at the end of the fnancial year1	(124)	22

Net current tax (liability) receivable balance comprises of current tax receivable of $7 million (2023: $24 million) and current tax liability of $131 million (2023: $2 million) classified as ‘Other assets’ and ‘Payables and other liabilities’ respectively in the consolidated SoFP.

4.3 Deferred tax assets and liabilities

Deferred tax assets and liabilities are attributable to the following:

	Deferred tax assets Deferred tax liabilities Net
	2024 $M Restated 2023 $M 2024 $M Restated 2023 $M 2024 $M Restated 2023 $M
Trading securities and investment securities Property, plant and equipment Intangible assets Provision for impairment on fnancial assets Insurance assets and liabilities1 Employee benefts Other items	- 120 42 2 (42) 118 16 30 - - 16 30 - - 11 19 (11) (19) 3 67 - - 3 67 130 145 192 229 (62) (84) 117 116 - - 117 116 139 98 1 - 138 98
Deferred tax assets and liabilities	405 576 246 250 159 326
Set-of of tax	(197) (199) (197) (199) - -
Net deferred tax assets and liabilities	208 377 49 51 159 326

‘Insurance assets and liabilities’ balance includes deferred tax liabilities for AASB 17 transition impact of $122 million (2023: $162 million).

Movement in deferred tax balances during the financial year:

	Deferred tax assets Deferred tax liabilities
	2024 $M Restated 2023 $M 2024 $M Restated 2023 $M
Balance at the beginning of the fnancial year Movement recognised in proft or loss Movement recognised in OCI and retained profts Acquisition/disposal of subsidiaries Foreign currencyexchange movement and other	576 669 250 249 (37) (104) (4) 2 (24) 12 - - (121) - - - 11 (1) - (1)
Balance at the end of the fnancialyear	405 576 246 250

Accounting policies

Income tax expense comprises current and deferred tax. This is recognised in the profit or loss, except to the extent that it relates to items recognised in equity or in OCI. Current tax consists of the expected tax payable on the taxable income for the year, after any adjustments in respect of previous years.

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax assets and liabilities are offset where they relate to income tax levied by the same taxation authority on either the same taxable entity or different taxable entities within the same tax consolidated group.

Annual Report 2023-24 97

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

4.3 Deferred tax assets and liabilities [continued]

Significant estimates, judgements and assumptions

Deferred tax assets are recognised when it is probable that future taxable profits will be available against which the temporary differences can be utilised.

Tax consolidation

The Company is the head entity in the tax consolidated group comprising all the Australian wholly owned subsidiaries. Consequently, all members of the tax-consolidated group are taxed as a single entity.

The members of the tax-consolidated group have entered into a tax sharing agreement and a tax funding agreement. Under the tax funding agreement, the wholly owned entities fully compensate the Company for any current tax payable assumed. The assets and liabilities arising under the tax funding agreement are recognised as intercompany assets and liabilities, at call.

Each member recognises the current and deferred tax amounts applicable to the transactions undertaken by it, reasonably adjusted for certain intra-group transactions, as if it continued to be a separate taxpayer. The Company also recognises the entire tax-consolidated group’s current tax liability.

Any differences between the current tax liability and any tax funding arrangement amounts are recognised by the Company as an equity contribution to, or distribution from, the subsidiary.

Suncorp Bank left the SGL tax-consolidated group on completion date. As part of the clear exit process, Suncorp Bank entered into a deed of release from SGL’s tax-sharing agreement and tax funding agreement.

5. Earnings per share

release from SGL’s tax-sharing agreement and tax funding agreement. 5. Earnings per share
		Restated
	2024	2023
	$M	$M
Proft attributable to ordinary equity holders of the Company:
Continuing operations	939	692
Discontinued operation – Suncorp Bank	258	379
Proft attributable to ordinary equity holders of the Company (basic)	1,197	1,071
Interest expense on convertible capital and subordinated notes1	73	54
Proft attributable to ordinary equity holders of the Company (diluted)	1,270	1,125
	2024	2023
	No. of shares	No. of shares
Weighted average number of ordinary shares (basic)	1,268,120,472	1,262,641,453
Efect of conversion of convertible capital and subordinated notes1	88,924,017	95,005,950
Weighted average number of ordinary shares (diluted)	1,357,044,489	1,357,647,403

Capital notes and the $250 million SGL subordinated notes issued on 1 March 2023 will only be treated as dilutive when their conversion to ordinary shares would decrease earnings per share or increase loss per share as per AASB 133 Earnings per Share .

Accounting policies

Basic earnings per share (EPS) is calculated by dividing the profit or loss attributable to equity holders of the Company by the weighted average number of ordinary shares outstanding during the period after eliminating shares held within the Group, known as treasury shares. Diluted EPS is calculated by adjusting the profit or loss attributable to equity holders of the Company and the weighted average number of ordinary shares used in the basic EPS calculation, for the effect of dilutive potential ordinary shares.

98 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS SHAREHOLDER INFORMATION

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

Insurance activities

This section (notes 6 to 8) discloses the general and life insurance activities of the Group.

6. Insurance revenue

6. Insurance revenue
		Restated
	2024	2023
	$M	$M
Insurance revenue from contracts measured under the premium allocation approach	13,611	12,000
Insurance revenue from contracts not measured under the premium allocation approach	86	81
Total insurance revenue	13,697	12,081

Accounting policies

For insurance contracts measured under the premium allocation approach (PAA), the Group recognises insurance revenue based on the passage of time over the insurance coverage period, which is considered to closely approximate the pattern of risks underwritten.

For contracts not measured under the PAA, insurance revenue corresponds to the release of the liability for remaining coverage, depending on the quantity of provided services, and an allocation of insurance acquisition cash flows. The amount of insurance revenue recognised in the reporting period reflects the consideration expected to be received for those services.

Insurance revenue includes any implicit or explicit amounts for transaction-based taxes and levies that Suncorp is required to pay on insurance contracts issued, and excludes transaction-based taxes and levies that are levied on the policyholder and collected by Suncorp on behalf of the relevant government authority.

7. Net insurance financial result

The following table analyses the Group’s net insurance financial results in profit or loss.

on behalf of the relevant government authority. 7. Net insurance fnancial result The following table analyses the Group’s net insurance fnancial results in proft or loss.
		Restated
	2024	2023
	$M	$M
Insurance service result	997	793
Insurance investment income:
Interest income	578	429
Dividend and trust distribution income	57	46
Net gains on insurance fnancial assets	389	133
Total insurance investment income	1,024	608
Insurance fnance (expense) income:
Discount unwind on claims liabilities	(433)	(295)
Market rate adjustments on claims liabilities	44	146
Other movements1	16	(7)
Net insurance fnance expense	(373)	(156)
Reinsurance fnance income (expense):
Discount unwind on claims recoveries	71	47
Market rate adjustments on claims recoveries	(5)	(19)
Other movements2	(8)	3
Net reinsurance fnance income	58	31
Net insurance fnancial result	1,706	1,276

Other movements in insurance finance expense include $23 million income (2023: $4 million expense) from changes in the discount rate on contractual service margin of life insurance contracts and a $7 million expense (2023: $3 million expense) from changes in the value of underlying assets of life insurance contracts.
Other movements in reinsurance finance income include $10 million expense (2023: $1 million income) from changes in the discount rate on contractual service margin of life insurance contracts and a net $2 million gain (2023: $2 million gain) from foreign exchange movements.

Annual Report 2023-24 99

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

8. Insurance and reinsurance contracts

8. Insurance and reinsurance contracts
		Restated
	2024	2023
	$M	$M
Liability for remaining coverage	2,682	2,567
Liability for incurred claims	9,881	10,043
Assets for insurance acquisition cash fows	(21)	(27)
Insurance contract liabilities	12,542	12,583
Asset for remaining coverage	(10)	(13)
Asset for incurred claims	29	28
Assets for insurance acquisition cash fows	(199)	(195)
Insurance contract assets	(180)	(180)
Net insurance contracts liabilities	12,362	12,403
Asset for remaining coverage	13	(63)
Asset for incurred claims	1,145	2,058
Net reinsurance contract assets	1,158	1,995

Accounting policies

Measurement of insurance contracts and reinsurance contracts

The Group’s insurance and reinsurance contracts are not measured individually but are aggregated into portfolios, each comprising contracts that are of similar risks and managed together. Insurance contracts are measured and presented separately, comprising the following:

Ά the liability for remaining coverage (LRC) representing coverage for contracts that will be provided after the end of financial year for insured events that have not yet occurred; and
Ά the liability for incurred claims (LIC) representing claims and expenses for insured events that have already occurred. The LIC relates to claims reported and claims not reported (Incurred But Not Enough Reported, Incurred But Not Reported).

Reinsurance contract assets comprise the following:

Ά the asset for remaining coverage (ARC) representing the estimated amounts recoverable from reinsurers in relation to future insured claims that have not yet been incurred; and
Ά the asset for incurred claims (AIC) representing the estimated amounts recoverable from reinsurers in relation to claims that have been incurred on underlying contracts.

Liability for Remaining Coverage (LRC) / Asset for Remaining Coverage (ARC)

AASB 17 features the General Measurement Model (GMM) as its default measurement model but allows a simplified measurement model known as the Premium Allocation Approach (PAA) for contracts with a coverage period of one year or less, or when the LRC/ARC under the PAA does not differ materially from that of the GMM. The Group is required to apply the Variable Fee Approach (VFA) for insurance contracts with direct participation (profit-sharing) features, which represents a small portion of the Group’s life insurance contracts.

100 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS SHAREHOLDER INFORMATION

Notes to the consolidated financial statements For the financial year ended 30 June 2024

(a) Applying PAA

Currently, the Group applies the PAA for all general insurance contracts issued and reinsurance contracts held. The Group applies the PAA to the majority of life insurance contracts issued due to the annual repricing characteristic of these contracts (stepped premiums).

For groups of insurance contracts issued, the LRC is measured as the premiums received less insurance revenue recognised and less acquisition costs deferred. For groups of reinsurance contracts held, ARC is measured as ceding premiums paid less reinsurance expenses recognised for the services received.

When applying the PAA, discounting of LRC and ARC is not required if the time between providing the insurance service and the premium due date is no more than one year. The Group has chosen not to discount the LRC and ARC for contracts measured under the PAA. Acquisition costs relating to insurance contracts issued to policyholders measured under the PAA can either be immediately expensed or capitalised and amortised over the coverage period. For contracts measured under the PAA, the Group includes acquisition costs in the LRC and amortises them based on the passage of time.

(b) Applying GMM

The carrying amount of the LRC and ARC is measured as the expected cash flows related to future service plus a profit margin known as the contractual service margin (CSM). The expected cash flows are the current estimates of the amounts the Group expects to collect from premiums and pay out for claims, benefits and expenses, adjusted to reflect the time value of money and the uncertainty in those amounts. The CSM is recognised in insurance revenue over the coverage period as the Group provides the insurance coverage.

Under the GMM, changes that relates to current or past coverage are recognised in profit or loss. Changes that relate to future coverage are recognised by adjusting the CSM. If the CSM is zero, the changes are recognised in profit or loss.

LRC Loss Component / Loss Recovery Component

AASB 17 requires the identification of groups of onerous contracts issued, with a loss component recognised on initial recognition of the group of contracts and added to the LRC. Under the PAA, the Group assumes that no contracts in the portfolio are potentially onerous at initial recognition unless facts and circumstances indicate otherwise. For contracts not measured under the PAA, an assessment is made at initial recognition to determine if they are onerous.

Where onerous contracts are covered by reinsurance contracts entered into before or at the same time as the onerous contracts, a lossrecovery component representing the reinsurance recoveries attributable to the onerous contract losses is recognised, which reduces ARC and increases reinsurance income. The Group has developed a framework for identifying indicators of possible onerous contracts on recognition and during the life of the contract, using internal information contained in prospective profitability reporting.

The carrying value of loss and corresponding loss-recovery components as at 30 June 2024 are disclosed in note 8.1.

Liability for Incurred Claims (LIC) / Asset for Incurred Claims (AIC)

The LIC comprises discounted estimates of future cash flows for claims incurred, adjusted to account for non-financial risks using risk adjustments. Similarly, the AIC comprise the discounted estimates of future cash flows adjusted to account for non-financial risks being transferred to the reinsurer.

Annual Report 2023-24 101

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Notes to the consolidated financial statements For the financial year ended 30 June 2024

8.1 Movement in insurance and reinsurance contract assets and liabilities

8.1.1 Insurance contracts analysis by remaining coverage and incurred claims

The table below analyses the movements in liability for remaining coverage and liability for incurred claims for insurance contracts issued.

	Liability for remaining coverage	Liability for incurred claims Contracts under the PAA Present value of future cash fows $M Risk adjustment $M Assets for insurance acquisition cash fows $M Total1 $M
	Excluding loss component $M Loss component $M Contracts not under the PAA $M
2024 Opening insurance contract assets Opening insurance contract liabilities
	(13) - -	28 - (195) (180)
	2,412 155 45	9,312 686 (27) 12,583
Net insurance contract liabilities at 1 July	2,399 155 45	9,340 686 (222) 12,403
Insurance revenue	(13,697) - -	- - - (13,697)
Incurred claims and other insurance service expenses Changes that relate to past services Losses and (reversals) of losses on onerous contracts Amortisation of insurance acquisition cash fows Impairment loss of assets for insurance acquisition cash fows	- (5) 77	9,439 251 - 9,762
	- - (1)	(44) (286) - (331)
	- (33) -	- - - (33)
	1,886 - -	- - 26 1,912
	- - -	- - 11 11
Insurance service expense	1,886 (38) 76	9,395 (35) 37 11,321
Investment components	(7) - 7	- - - -
Insurance service result2 Insurance fnance expense Foreign currency translation adjustments3	(11,818) (38) 83	9,395 (35) 37 (2,376)
	4 (17) 1	356 29 - 373
	- - -	(1) - - (1)
Total changes in comprehensive income	(11,814) (55) 84	9,750 (6) 37 (2,004)
Cash fows (net of GST): Premiums received Insurance acquisition costs paid Claims and other insurance service expensespaid
	13,967 - -	- - - 13,967
	(1,980) - -	- - (35) (2,015)
	- - (74)	(9,915) - - (9,989)
Total cash fows	11,987 - (74)	(9,915) - (35) 1,963
Closing insurance contract assets Closing insurance contract liabilities	(10) - -	28 1 (199) (180)
	2,582 100 55	9,147 679 (21) 12,542
Net insurance contract liabilities at 30 June	2,572 100 55	9,175 680 (220) 12,362

The carrying value of contracts not measured under the PAA of $380 million (2023: $375 million) comprises the present value of future cash flows of $157 million (2023: $128 million), a risk adjustment of $43 million (2023: $37 million), and a CSM of $180 million (2023: $210 million).
The movement in insurance contracts reflects $26 million (2023: $3 million) of changes related to future services, $10 million (2023: $24 million) of changes related to current services, and $1 million (2023: $1 million) of changes related to past services.
$112 million (2023: $155 million) of CSM relates to contracts measured under the fair value transition approach. The residual CSM was from other life insurance contracts.
Insurance service result excludes NDAEs of $18 million (2023: $21 million), which are classified as ‘Fees, overheads and other expenses’ in the consolidated SoCI.
Foreign currency translation adjustments are recognised in OCI and are therefore excluded from the net insurance financial result disclosed in note 7.

102 Annual Report 2023-24

REMUNERATION REPORT FINANCIAL STATEMENTS SHAREHOLDER INFORMATION

Notes to the consolidated financial statements For the financial year ended 30 June 2024

	Liability for remaining coverage	Liability for incurred claims Contracts under the PAA Present value of future cash fows $M Risk adjustment $M Assets for insurance acquisition cash fows $M Total1 $M
	Excluding loss component $M Loss component $M Contracts not under the PAA $M
2023 (Restated) Opening insurance contract assets Opening insurance contract liabilities	(13) - - 2,146 115 42	26 - (187) (174) 9,404 705 (28) 12,384
Net insurance contract liabilities at 1 July	2,133 115 42	9,430 705 (215) 12,210
Insurance revenue	(12,081) - -	- - - (12,081)
Incurred claims and other insurance service expenses Changes that relate to past services Losses and (reversals) of losses on onerous contracts Amortisation of insurance acquisition cash fows	- (7) 59 - - (1) - 46 - 1,807 - -	9,683 274 - 10,009 (244) (308) - (553) - - - 46 - - 34 1,841
Insurance service expense	1,807 39 58	9,439 (34) 34 11,343
Investment components	(6) - 6	- - - --
Insurance service result2 Insurance fnance expense Foreign currency translation adjustments3	(10,280) 39 64 (5) 1 - 12 - -	9,439 (34) 34 (738) 147 13 - 156 6 2 (3) 17
Total changes in comprehensive income	(10,273) 40 64	9,592 (19) 31 (565)
Cash fows (net of GST): Premiums received Insurance acquisition costs paid Claims and other insurance service expensespaid	12,354 - - (1,815) - - - - (61)	- - - 12,354 - - (38) (1,853) (9,682) - - (9,743)
Total cash fows	10,539 - (61)	(9,682) - (38) 758
Closing insurance contract assets Closing insurance contract liabilities	(13) - - 2,412 155 45	28 - (195) (180) 9,312 686 (27) 12,583
Net insurance contract liabilities at 30 June	2,399 155 45	9,340 686 (222) 12,403

Annual Report 2023-24 103

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Notes to the consolidated financial statements For the financial year ended 30 June 2024

8.1 Movement in insurance and reinsurance contract assets and liabilities (continued)

8.1.2 Reinsurance contracts analysis by remaining coverage and incurred claims

The table below analyses the movements in asset for remaining coverage and asset for incurred claims for reinsurance contracts held.

	Asset for remaining coverage	Asset for incurred claims Contracts under the PAA Present value of future cash fows $M Risk adjustment $M Total1 $M
	Excluding loss recovery component $M Loss recovery component $M Contracts not under the PAA $M
2024 Opening reinsurance contract assets at 1 July	(84) 21 72	1,867 119 1,995
Reinsurance premium expense	(1,514) - -	- - (1,514)
Recoveries of incurred claims and other insurance service expenses Changes that relate to past services Changes that relate to future services	- (1) 51	258 15 323
	- - -	(113) (71) (184)
	- (5) 1	- - (4)
Reinsurance recoveries	- (6) 52	145 (56) 135
Net income (expense) from reinsurance contracts Efect of changes in non-performance risk of reinsurers Reinsurance fnance income (expense) Foreign currency translation adjustments2	(1,514) (6) 52	145 (56) (1,379)
	- - -	1 - 1
	(14) (2) 1	68 5 58
	1 - -	2 - 3
Total changes in comprehensive income	(1,527) (8) 53	216 (51) (1,317)
Cash fows (net of GST): Reinsurance premiums paid net of ceding commissions Recoveries from reinsurance and other service expenses
	1,611 - -	51 - 1,662
	- - (36)	(1,146) - (1,182)
Total cash fows	1,611 - (36)	(1,095) - 480
Closing reinsurance contract assets at 30 June	- 13 89	988 68 1,158

The carrying value of contracts not measured under the PAA of $59 million (2023: $46 million) comprises the present value of future cash flows of $48 million (2023: $5 million), a risk adjustment of $25 million (2023: $17 million), and a CSM liability of $14 million (2023: $24 million asset).
The movement in reinsurance contracts reflects $5 million (2023: $nil) of changes related to future services, $17 million (2023: $5 million) of changes related to current services, and $1 million (2023: $1 million) of changes related to past services.
$1 million (2023: $30 million) of CSM relates to contracts measured under the fair value transition approach, offset by $15 million (2023: $6 million) of CSM from other life insurance contracts.
Foreign currency translation adjustments are recognised in OCI and are therefore excluded from the net reinsurance financial result disclosed in note 7.

104 Annual Report 2023-24

REMUNERATION REPORT FINANCIAL STATEMENTS SHAREHOLDER INFORMATION

Notes to the consolidated financial statements For the financial year ended 30 June 2024

	Asset for remaining coverage	Asset for incurred claims Contracts under the PAA Present value of future cash fows $M Risk adjustment $M Total1 $M
	Excluding loss recovery component $M Loss recovery component $M Contracts not under the PAA $M
2023 (Restated) Opening reinsurance contract assets at 1 July	(65) 19 73	2,352 146 2,525
Reinsurance premium expense	(1,422) - -	- - (1,422)
Recoveries of incurred claims and other insurance service expenses Changes that relate to past services	- - 40 - - (1)	1,236 61 1,337 232 (91) 140
Reinsurance recoveries	- - 39	1,468 (30) 1,477
Net income (expense) from reinsurance contracts Efect of changes in non-performance risk of reinsurers Reinsurance fnance income (expense) Foreign currency translation adjustments2	(1,422) - 39 - - - (4) 2 (1) 2 - 1	1,468 (30) 55 - - - 31 3 31 - - 3
Total changes in comprehensive income	(1,424) 2 39	1,499 (27) 89
Cash fows (net of GST): Reinsurance premiums paid net of ceding commissions Recoveries from reinsurance and other service expenses	1,405 - - - - (40)	- - 1,405 (1,984) - (2,024)
Total cash fows	1,405 - (40)	(1,984) - (619)
Closing reinsurance contract assets at 30 June	(84) 21 72	1,867 119 1,995

Annual Report 2023-24 105

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

8.2 General insurance contracts claims development table

The following table presents the net claims development for general insurance claims incurred in the ten most recent accident years before the reporting period.

	Accident Year
	Prior $M 2015 $M 2016 $M 2017 $M 2018 $M 2019 $M 2020 $M 2021 $M 2022 $M 2023 $M 2024 $M Total $M
Estimate of undiscounted net ultimate claims c At end of accident year One year later Two years later Three years later Four years later Five years later Six years later Seven years later Eight years later Nine years later	ost (long-tail): 1,432 1,477 1,588 1,519 1,433 1,386 1,429 1,568 1,673 1,840 1,376 1,435 1,503 1,466 1,353 1,267 1,391 1,538 1,657 1,279 1,375 1,412 1,448 1,357 1,249 1,441 1,491 1,196 1,354 1,401 1,464 1,360 1,235 1,443 1,181 1,341 1,399 1,446 1,331 1,237 1,160 1,311 1,414 1,399 1,321 1,160 1,285 1,408 1,400 1,158 1,273 1,394 1,152 1,265 1,156
Current estimate of cumulative claims cost – long-tail Cumulative payments	1,156 1,265 1,394 1,400 1,321 1,237 1,443 1,491 1,657 1,84014,204 (1,100) (1,184) (1,268) (1,245) (1,095) (940) (907) (664) (408) (184) (8,995)
Outstanding claims – undiscounted Discount to present value Outstanding claims – long-tail (discount net) Outstanding claims – short-tail	614 56 81 126 155 226 297 536 827 1,249 1,656 5,823 (165) (8) (12) (17) (20) (25) (29) (48) (79) (136) (198) (737) 449 48 69 109 135 201 268 488 748 1,113 1,458 5,086 2,965
Total discounted net outstanding claims (A) 8,051 Claims handling expenses (B) 417 Non-reinsurance recoveries on outstanding claims 902 Gross risk adjustment (C) 675 Reinsurance recoveries on outstanding claims (D) 843 Reinsurance risk adjustment (E) 68 Other LIC attributable cash fows (F) (271) Other AIC attributable cash fows (G) 145
LIC (A + B + C + D + F) 9,715 AIC (D + E + G) 1,056
Net outstanding claims (LIC - AIC) 8,659

The claims development triangle by accident period for long-tailed claims discloses amounts net of reinsurance and third-party recoveries to give the most meaningful insight into the impact on profit or loss. Short-tail claims are disclosed separately as they are generally subject to less uncertainty since they are normally reported soon after the incident and are generally settled within 12 months following the reported incident.

Under AASB 17, the LIC and AIC contain other elements which are shown below the claims development triangle in order to produce the LIC and AIC. The net outstanding claims is then defined in the table above as LIC less AIC, noting that no such term exists under AASB 17.

106 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Notes to the consolidated financial statements For the financial year ended 30 June 2024

Significant estimates, judgements and assumptions

The estimation of the LIC is based on multiple actuarial techniques that analyse experience, trends and other relevant factors utilising the Group’s specific data, relevant industry data and general economic data. Methods undertaken to determine incurred claims liabilities will vary according to the class of business.

The use of multiple actuarial methods assists in providing a greater understanding of the trends inherent in the historical data. The projections obtained from various methods also assist in setting the range of possible outcomes. The most appropriate method or a blend of methods is selected, considering the characteristics of the class of business and the extent of the development of each past accident period.

The Group’s estimation of the LIC includes the expected future cost of claims notified to the Group as at reporting date as well as claims incurred but not reported (IBNR), claims incurred but not enough reported (IBNER), gross risk adjustments and other LIC attributable cashflows. Projected payments are discounted to present value and an estimate of direct attributable expenses expected to be incurred in settling these claims is determined.

The Group takes all reasonable steps to ensure that it has appropriate information regarding its LIC, with estimates and judgements continually being evaluated and updated based on historical experience and other factors. However, given the uncertainty in the estimation process, it is likely that the final outcome will prove to be different from the original liability established.

The estimation of claims IBNR and claims IBNER is generally subject to a greater degree of uncertainty with claims often not being adequately reported until many years after the events giving rise to the claims have happened. For this reason, long-tail classes of business will typically display greater variations between initial estimates and final outcomes.

Estimation of AIC is also calculated using the above methods. The recoverability is assessed on a periodic basis, taking into consideration factors such as counterparty and credit risk and any related impairment is recognised through the reinsurance non-performance risk. The following key assumptions have been made in determining the LIC excluding ‘other cashflows’:

	2024 2023(Restated)
	Australia New Zealand Australia New Zealand
Weighted average term to settlement (years) Weighted average economic infation rate Superimposed infation rate Discount rate Claims handling expense ratio Risk adjustment	2.6 1.0 2.7 1.0 3.6% 3.7% 3.8% 6.2% 1.7% 1.0% 1.7% 1.1% 4.5% 5.2% 4.4% 5.3% 5.1% 7.5% 5.5% 8.3% 7.3% 8.6% 7.4% 8.5%

Weighted average term to settlement

The weighted average term to settlement is the projected term to final claim payment. The term to settlement is calculated separately by class of business and is based on historical settlement pattern.

Economic and superimposed inflation

Economic inflation is based on economic indicators such as the consumer price index and/or increases in average weekly earnings. Superimposed inflation reflects the tendency for some costs, such as court awards, to increase at levels in excess of economic inflation. Inflation assumptions are set at a class of business level and reflect experience and future expectations.

Claims handling expense ratio

Claims handling expense ratio is calculated with reference to past experience of claims handling costs as a percentage of past payments.

Method of estimating discount rates

To calculate the discount rate, a bottom-up approach is applied, whereby the risk-free yield curve is adjusted to reflect the liquidity characteristics of the insurance cash flows through the addition of an illiquidity premium (ILP) which will increase the discount rate. The derivation of ILP comprises a market ILP and an illiquidity ratio which adjusts the market ILP to reflect the liquidity characteristics of the Group’s insurance and reinsurance contracts.

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OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

8.2 General insurance contracts claims development table [continued]

The Group used the following yield curves to discount cash flows:

	1 year	2 years	3 years	4 years	5+ years
	%	%	%	%	%
2024 Australia New Zealand	4.6 5.6	4.4 5.2	4.3 5.0	4.3 4.9	4.7 5.1
2023 (Restated)
Australia	4.6	4.5	4.3	4.2	4.4
New Zealand	5.8	5.6	5.2	5.0	5.1

Method of estimating the risk adjustment

The Group has adopted an approach to calculate the risk adjustment informed by a cost of capital model, which is sensitive to changes in claims mix, discount rate, reinsurance arrangements, and the Group’s internal view of the level of capital required in order to meet regulatory requirements and the Group’s performance targets. The risk adjustment is then calculated to be the amount that must be added to the central estimate of the insurance liabilities, such that the probability that the actual outcome will be less than the liability (including the risk adjustment). A 75% probability of adequacy is determined by the Group for the risk adjustment as at 30 June 2024, which is similar to the probability of adequacy prescribed by Australian Prudential Regulation Authority (APRA) to meet regulatory capital requirement.

The changes in the risk adjustment due to discount rate effect are disaggregated and presented in ‘Insurance finance income / expense’ in the consolidated SoCI.

Others

There is a heightened level of price inflation being experienced across the community and there is uncertainty as to the ultimate level of timing for this higher inflation to reduce. As a result of this higher price inflation, there is also a risk of potential flow on to increased wage inflation. Allowance has been made in the valuations for potential inflation; however, the extent of future inflation may be different to that assumed, leading to different outcomes in claims costs for future reporting periods.

In addition to price and wage inflation, allowance is made for superimposed (or social) inflation for long-tail classes of business. This represents the tendency for claims costs to increase faster than normal inflation and can be due to a number of factors, such as changes to court awards and precedents, increased costs of medical treatment, and social and environmental pressures. Superimposed inflation experience can have periods of non-existence followed by periods of high superimposed inflation which can have a significant impact on ultimate cost of claims. As for price and wage inflation, allowance has been made for potential superimposed inflation, but experience may be different to that assumed.

108 Annual Report 2023-24

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FINANCIAL STATEMENTS SHAREHOLDER INFORMATION

Notes to the consolidated financial statements For the financial year ended 30 June 2024

8.3 Impact of changes in key variables relating to general insurance contracts

The Group conducts sensitivity analyses to quantify the exposure to the risk of changes in the key underlying actuarial assumptions on Gross and Net outstanding claims reserves. A sensitivity analysis is conducted on each variable while holding all other variables constant. The table below describes how a change in each assumption will affect the profit before tax. There is no impact to equity reserves.

Movement in variable1	Proft(Loss)
	Gross Net
	2024 $M Restated 2023 $M 2024 $M Restated 2023 $M
Weighted average term to settlement (years) +0.5 years -0.5years	(17) (54) (17) (39) 17 54 17 38
Infation rate +100 bps -100 bps	(193) (195) (183) (176) 184 186 174 167
Discount rate +100 bps -100 bps	179 180 170 162 (191) (192) (181) (173)
Claims handling expense ratio +100 bps -100 bps	(88) (89) (79) (71) 88 89 79 71
Risk adjustment +100 bps -100 bps	(91) (90) (83) (75) 91 90 83 75

1 bps – basis points.

The impact on profit or loss before income tax due to changes in interest rate from investment in interest-bearing securities may partially offset the effect of changes in inflation and discount rates on outstanding claims liabilities. Refer note 19.3(b) for the Group’s risk management policies for interest rate risk exposures.

8.4 Maturity profile of insurance contracts

The following table summarises the maturity profile of the Group’s insurance contract liabilities based on the present value estimate of future cash flows. Liability and asset for remaining coverage of contracts measured is excluded.

	1 year or less	1 to 5 years	Over 5 years	Total cash fows
	$M	$M	$M	$M
2024
Insurance contract liabilities	4,842	4,068	971	9,881
2023 (Restated)
Insurance contract liabilities	5,095	3,986	962	10,043

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OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

Investments and financial instruments

The Group’s investment strategy is a key part in achieving an appropriate balance between risk and return. This strategy utilises a diverse range of trading and investment securities. This generates investment income which contributes to the Group’s results, assists in meeting the Group’s cash flow needs to pay claims (part of insurance activities) and the Group’s capital requirements.

Derivatives are used by the Group to manage interest rate and foreign exchange risk exposures.

9. Trading and investment securities

9. Trading and investment securities
	2024	2023
	$M	$M
Trading securities
_Financial assets at FVTPL_1
Interest-bearing securities:
Government securities	2,154	2,218
Less: trading securities reclassifed to held for sale (refer to note 27.2)	(2,154)	-
Total trading securities – current	-	2,218
Investment securities
_Financial assets at FVTPL_1
Interest-bearing securities	16,365	15,026
Equity securities	701	575
Unit trusts	1,081	1,017
	18,147	16,618
Financial assets at FVOCI 2
Interest-bearing securities	9,849	6,431
Less: investment securities measured at FVOCI reclassifed to held for sale (refer to note 27.2)	(9,849)	-
Total investment securities	18,147	23,049
Current	17,298	17,815
Non-current	849	5,234
Total investment securities	18,147	23,049

Fair value through profit or loss (FVTPL).
Fair value through other comprehensive income (FVOCI).

110 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

Accounting policies

The Group determines whether each financial asset’s contractual cash flows are solely payments of principal and interest (SPPI) and how the financial asset is managed when classifying financial assets.

Fair value through profit or loss

Financial assets where contractual cash flows are not SPPI will be classified at FVTPL. Assets that are SPPI that are acquired for the purpose of selling in the near term or holds as part of a portfolio that is managed together for short term profit making. These securities are therefore classified as FVTPL. Where financial assets other than FVTPL back liabilities at FVTPL, this would create an accounting mismatch and the financial assets can be designated at FVTPL to remove this mismatch.

Financial assets at FVTPL are initially recognised on trade date at fair value. Transaction costs are recognised in profit or loss as incurred. Subsequently, the assets are measured at fair value on each reporting date and any gains or losses are taken immediately to profit or loss. The Group has classified financial assets held in portfolios that match the interest rate sensitivity of insurance liabilities, as assets backing general insurance liabilities.

Fair value through other comprehensive income

Debt instruments that are SPPI and are held-to-collect-and-to-sell (regular, but not frequent sales) will be recorded as FVOCI. These will be measured at fair value with subsequent changes going through OCI. On derecognition, the accumulated OCI will be recycled into profit or loss.

10. Derivative financial instruments

	2024 2023
	Asset $M Liability $M Asset $M Liability $M 112 97 131 159 2 2 4 4 28 16 67 34 - - 1 - 1 2 1 2
Derivatives held for trading Interest rate Interest rate and foreign exchange Foreign exchange Equity contracts Credit contracts
Less: derivatives held for tradingreclassifed to held for sale (refer to note 27.2)	(62) (42) - -
	81 75 204 199
Derivatives designated in hedging relationships Interest rate: Fair value hedge Cash fow hedge Interest rate and foreign exchange: Fair value and cash fow hedge	54 21 64 - 167 241 307 483 - - 31 -
Less: derivatives designated in hedging relationships reclassifed to held for sale(refer to note 27.2)	(221) (262) - -
	- - 402 483
Total	81 75 606 682

Derivative financial instruments are contracts whose values are derived from one or more underlying prices, benchmarks or other variables. Derivatives are used by the Group to manage interest rate and foreign exchange risk. Derivatives that are classified as “held for trading” are either not designated in a qualifying hedge accounting relationship, or acquired or incurred principally for the purpose of selling or repurchasing in the near term, or held as part of a portfolio that is managed together for short-term profit or position taking. Hedge accounting derivatives are those derivatives that are designated in a qualifying hedge accounting relationship.

Accounting policies

All derivatives are initially recognised at fair value on trade date and transaction costs are recognised in profit or loss as incurred. Derivatives are classified and measured at FVTPL unless they are being designated as a hedging instrument in an effective hedge relationship under hedge accounting.

Annual Report 2023-24 111

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OVERVIEW

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CORPORATE GOVERNANCE

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

11. Financial instruments, master netting and transfer of financial assets

11.1 Fair value of financial instruments

Fair values are categorised by a three-level hierarchy which identifies the inputs to valuation techniques used to measure fair value:

Ά Level 1: derived from quoted prices (unadjusted) in active markets for identical financial instruments that the Group can access at the measurement date.
Ά Level 2: derived from other than quoted prices included within level 1 that are observable for the financial instruments, either directly or indirectly. The valuation techniques include the use of discounted cash flow analysis, option pricing models and other market accepted valuation models.
Ά Level 3: fair value is determined using valuation techniques which include significant inputs that are unobservable. The valuation techniques include the use of discounted cash flow models for loans and advances. The fair value of investments in infrastructure and property related assets (held via unlisted trusts) are determined based on the Group’s share of the net asset value of the unlisted trusts, as advised by the external investment manager. The fair value of other unlisted equity securities is determined as the cost of the investment adjusted for known changes in its fair value as this is considered to be the most reliable measure of fair value.

Financial assets and liabilities measured at fair value categorised by fair value hierarchy

	2024 2023
	Level 1 $M Level 2 $M Level 3 $M Total $M Level 1 $M Level 2 $M Level 3 $M Total $M
Financial assets Trading securities FVTPL1 FVOCI1 Derivatives Assets held for sale3	- - - - - 2,218 - 2,218 3,261 14,334 552 18,147 3,015 13,083 520 16,618 - - - - - 6,431 - 6,431 3 78 - 81 9 597 - 606 2 12,284 - 12,286 - - - -
	3,266 26,696 552 30,514 3,024 22,329 520 25,873
Financial liabilities FVTPL2 Derivatives Liabilities held for sale3	- 300 - 300 - 2,700 - 2,700 5 70 - 75 13 669 - 682 - 304 - 304 - - - -
	5 674 - 679 13 3,369 - 3,382

Disclosed within the consolidated SoFP category of ‘Investment securities’.
Disclosed within the consolidated SoFP category of ‘Payables and other liabilities’ as $300 million (2023: $181 million) and ‘Borrowings’ as $nil (2023: $2,519 million).
Represent assets and liabilities reclassified to held for sale effective 30 June 2024 in the current financial year (refer to note 27).

There have been no transfers between level 1 and level 2 during the current and prior financial year.

Level 3 financial assets consist of investments in infrastructure assets and property related assets (held via unlisted trusts) of $552 million (2023: $520 million). The fair value of level 3 financial assets (held via unlisted trusts) is based on the Group’s share of reported net asset value, as advised by the external investment manager. Infrastructure and property related assets held in the unlisted trusts are independently valued in accordance with AASB 13 Fair value measurement .

During the financial year, $35 million additional units of level 3 assets were purchased (2023: $306 million) while there were no redemptions (2023: $nil). Fair value loss of $3 million (2023: $12 million gain) was recognised through ‘Insurance investment income’ and ‘Net gains (losses) on financial assets and liabilities at FVTPL from non-insurance activities’ in the consolidated SoCI.

112 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS SHAREHOLDER INFORMATION

Notes to the consolidated financial statements For the financial year ended 30 June 2024

Financial assets and liabilities not measured at fair value

The following table discloses a comparison of carrying value and fair value of financial assets and liabilities that are not measured at fair value after initial recognition, where their carrying value is not a reasonable approximation of fair value.

Note Carrying value $M	Fair value
	Level 1 $M Level 2 $M Level 3 $M Total $M
2024 Financial assets Loans and advances1 27.2 69,715

	- - 69,621 69,621
69,715	- - 69,621 69,621
Financial liabilities Deposits1 27.2 53,755 Borrowings1 27.2 24,776 Loan capital 15 2,525
	- 53,690 - 53,690
	- 24,821 - 24,821
	1,181 1,151 - 2,332
81,056	1,181 79,662 - 80,843
2023 Financial assets Loans and advances 67,102	- - 66,767 66,767
67,102	- - 66,767 66,767
Financial liabilities Deposits 51,178 Borrowings 21,490 Loan capital 15 2,544	- 51,054 - 51,054 - 21,349 - 21,349 1,183 1,141 - 2,324
75,212	1,183 73,544 - 74,727

Represent assets and liabilities reclassified to held for sale effective 30 June 2024 in the current financial year (refer to note 27).

Accounting policies

Financial assets

The carrying value of loans and advances is net of provisions for expected credit loss (ECL). For variable rate loans, excluding impaired loans, the carrying amount is considered a reasonable estimate of fair value. The fair value for fixed rate loans is calculated by utilising discounted cash flow models to determine the net present value of the portfolio future principal and interest cash flows, based on the interest rate repricing of the loans. The discount rates applied are based on the rates offered by the Group on current products with similar maturity dates.

Financial liabilities

The carrying value for non-interest-bearing, call and variable rate deposits, and fixed rate deposits repricing within six months of origination is considered a reasonable estimate of their fair value. Discounted cash flow models are used to calculate the fair value of other term deposits based upon deposit type and related maturities.

The fair value of borrowings and loan capital is calculated based on either the quoted market prices at reporting date or, where quoted market prices are not available, a discounted cash flow model using an observable yield curve appropriate to the remaining maturity of the instrument.

Significant estimates, judgements and assumptions

The Group continues to monitor valuation inputs when determining fair value of financial instruments. The Group’s derivative assets and liabilities, trading and investment securities are valued using inputs from observable market data as shown in the Group fair value hierarchy disclosure.

Annual Report 2023-24 113

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CORPORATE GOVERNANCE

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

11.2 Master netting or similar arrangements

As at 30 June 2024, the Group had $331 million (2023: $604 million) derivative financial assets and $330 million (2023: $655 million) derivative financial liabilities subject to netting or similar arrangements. Of this balance, $281 million derivative financial assets and $283 million derivative financial liabilities have been reclassified to held for sale effective 30 June 2024 in the current financial year (refer to note 27).

Certain derivatives are subject to the International Swaps and Derivative Association (ISDA) Master Agreement and other similar master netting arrangements. These arrangements contractually bind the Group and the counterparty to apply close out netting across all outstanding transactions. If either party defaults or other pre-agreed termination events occur, they do not meet the criteria for offsetting in the consolidated SoFP. The cash collateral pledged or received is subject to the ISDA Credit Support Annex and other standard industry terms. As at 30 June 2024, $37 million (2023: $80 million) derivative financial assets and $56 million (2023: $103 million) derivative financial liabilities were received/pledged as financial collateral in the consolidated SoFP.

11.3 Transfers of financial assets and collateral accepted as security for assets

Transferred financial assets continue to be recognised in the consolidated SoFP if the Group is deemed to have retained substantially all the risks and rewards associated with the financial assets transferred. This arises when the Group enters into repurchase agreements.

Repurchase agreements

The Group enters into repurchase agreements involving the sale of interest-bearing securities and simultaneously agrees to buy them back at a pre-agreed price on a future date. In the consolidated SoFP, the interest-bearing securities transferred are recognised in ‘Investment securities’, because the Group retains the risks and rewards of ownership. The obligation to repurchase is included in ‘Payables and other liabilities’. As at 30 June 2024, the Group held $300 million (2023: $181 million) of repurchase agreements related to the insurance business.

114 Annual Report 2023-24

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FINANCIAL STATEMENTS SHAREHOLDER INFORMATION

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

Capital structure

This section discloses the Group’s different sources of funds, such as ordinary shares, retained profits and loan capital. Details of the Group’s approach to capital risk management are disclosed in note 16.

12. Share capital

12. Share capital
			Share-based		Total share
	Number of	Issued capital	payments	Treasury shares	capital
	ordinary shares	$M	$M	$M	$M
Balance as at 30 June 2022	1,262,604,976	12,321	30	(26)	12,325
Shares issued under DRP1	3,937,416	48	-	-	48
Share-based payments	-	-	10	-	10
Treasuryshare movements	-	-	-	1	1
Balance as at 30 June 2023	1,266,542,392	12,369	40	(25)	12,384
Shares issued under DRP1	5,773,700	82	-	-	82
Share-based payments	-	-	5	-	5
Treasury share movements	-	-	-	(13)	(13)
Other movements2	-	11	-	-	11
Balance as at 30 June 2024	1,272,316,092	12,462	45	(38)	12,469

Dividend reinvestment plan (DRP).
Other movements represent an $11 million tax adjustment related to share buy-back costs incurred in financial year 2021-22.

Ordinary shares

The Company does not have authorised capital or par value in respect of its issued shares. All issued shares are fully paid.

Holders of ordinary shares are entitled to receive dividends when declared and are entitled to one vote per share at shareholders’ meetings.

In the event of the winding-up of the Company, ordinary shareholders rank after all other shareholders and creditors and are fully entitled to any proceeds on liquidation.

Dividend Reinvestment Plan

All eligible shareholders can elect to participate in the DRP to reinvest all or part of their dividends, with no brokerage or transaction costs. During the current period, the DRP has been satisfied issuing new shares (2023: satisfied issuing new shares).

Share-based payments

Share-based payments represent the cumulative expense and other adjustments recognised in share capital relating to equity-settled share-based payment transactions.

Treasury shares

Treasury shares are deducted from consolidated equity at the amount of the consideration paid. No gain or loss on treasury shares is recognised.

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Notes to the consolidated financial statements

For the financial year ended 30 June 2024

13. Reserves

13. Reserves
				Foreign currency
	General equity			translation
	reserve1	Hedging reserve2	FVOCI reserve2	reserve3	Total reserves
	$M	$M	$M	$M	$M
Balance as at 1 July 2022	76	(100)	(39)	35	(28)
Net change in fair value of fnancial instruments	-	(47)	4	-	(43)
Income tax beneft (expense)	-	14	(1)	-	13
Exchange diferences on translation of foreign operations	-	-	-	12	12
Balance as at 30 June 2023	76	(133)	(36)	47	(46)
Transfer to Retained Profts	-	-	(13)	-	(13)
Net change in fair value of fnancial instruments	-	106	(29)	-	77
Income tax (expense) beneft	-	(32)	9	-	(23)
Exchange diferences on translation of foreign operations	-	-	-	(6)	(6)
Balance as at 30 June 2024	76	(59)	(69)	41	(11)

$76 million (2023: $76 million) of the general reserve is associated with Suncorp Bank and will be transferred to retained profits upon completion of sale (refer to note 27). 2. $59 million (2023: $133 million) of the hedging reserve and $45 million (2023: $25 million) of the FVOCI reserve are associated with Suncorp Bank. These reserves will be recycled to profit or loss upon completion of sale (refer to note 27).
Comparative information in foreign currency translation reserve has been restated due to the adoption of AASB 17 from 1 July 2023.

Fair value through other comprehensive income reserve

The FVOCI reserve represents the cumulative net changes in the fair value of debt and equity investments classified as FVOCI, until derecognised or impaired.

Foreign currency translation reserve

The foreign currency translation reserve consists of all foreign exchange differences arising from the translation of the financial statements of foreign operations that have a functional currency other than Australian dollars. These foreign exchange differences are net of the effective portion of the cumulative net change in the fair value of hedging instruments used to hedge these operations.

116 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS SHAREHOLDER INFORMATION

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

14. Dividends

	2024 2023
	Cents per share $M Cents per share $M
Dividend payments on ordinary shares 2023 fnal dividend (2023: 2022 fnal dividend) 2024 interim dividend (2023: 2023 interim dividend) Dividendspaid on treasuryshares	27 342 17 215 34 432 33 417 - -
Total dividends on ordinary shares paid to owners of the Company	61 774 50 632
Dividends not recognised in the consolidated SoFP1 Dividends determined since reporting date 2024 fnal dividend (2023: 2023 fnal dividend)	44 560 27 342
	44 560 27 342
Dividend franking account2 Amount of franking credit available for use in subsequent fnancial years excludingthe efects of dividends determined since reportingdate	487 416

The 2024 final dividend determined but not recognised in the consolidated SoFP, is estimated based on the total number of ordinary shares on issue without taking into account treasury shares as at 30 June 2024. The actual amount recognised in the consolidated financial statements for the year ending 30 June 2025 will be based on the actual number of ordinary shares on issue net of treasury shares on the record date.
The 2024 final dividend determined is expected to reduce the dividend franking account balance by $240 million (2023: $147 million).

Accounting policies

Dividends on ordinary shares are provided for in the consolidated financial statements once determined, accordingly, the final dividends announced for the current financial year is provided for and paid in the following financial year.

15. Loan capital

The following table shows loan capital at amortised cost and categorised by capital type, class and instrument under APRA’s Life and General Insurance Capital (LAGIC) reporting standards. These instruments have been issued by SGL.

General Insurance Capital (LAGIC) reporting standards. These instruments have been issued by SGL.
	2024	2023
	$M	$M
Additional Tier 1 loan capital
$AUD 375 million SGL Capital Notes 2 (SGL CN2)	-	374
$AUD 389 million SGL Capital Notes 3 (SGL CN3)	387	385
$AUD 405 million SGL Capital Notes 4 (SGL CN4)	401	400
$AUD 360 million SGL Capital Notes 5 (SGL CN5)	353	-
Total Additional Tier 1 loan capital	1,141	1,159
Tier 2 loan capital
$AUD 600 million SGL Subordinated Notes (SGL WSN)	-	600
$AUD 250 million SGL Subordinated Notes (SGL WSN2)	250	249
$AUD 290 million SGL Subordinated Notes (SGL WSN3)	289	288
$AUD 250 million SGL Subordinated Notes (SGL WSN4)	248	248
$AUD 600 million SGL Subordinated Notes (SGL WSN5)	597	-
Total Tier 2 loan capital	1,384	1,385
Total non-current loan capital	2,525	2,544

Total liability in relation to interest accrued on the loan capital as at the end of the financial year is $8 million (2023: $9 million), disclosed within the consolidated SoFP category of ‘Payables and other liabilities’.

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CORPORATE GOVERNANCE

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

15. Loan capital [continued]

Additional Tier 1 Capital

Additional Tier 1 Capital
		Potential
	Margin	scheduled			2024	2023
	above 90 day	mandatory	Optional		Number	Number
	BBSW	conversion date	exchange date	Issue date	on issue	on issue
SGL CN2	365 bps	17 Jun 2026	17 Jun 2024	24 Nov 2017	-	3,750,000
SGL CN3	300 bps	17 Jun 2028	17 Jun 2026	17 Dec 2019	3,890,000	3,890,000
SGL CN4	290 bps	17 Dec 2030	17 Jun 2028	23 Sep 2021	4,050,000	4,050,000
SGL CN5	280 bps	17 Dec 2032	17 Jun 2030	14 May2024	3,600,000	-

The Group issued $360 million of capital notes (SGL CN5) for $100 per note on 14 May 2024 and redeemed in full $375 million of SGL CN2 on 17 June 2024.

The capital notes are eligible Additional Tier 1 instruments under Basel III and LAGIC rules. They are fully paid, perpetual, subordinated, unsecured securities.

Distributions are discretionary, non-cumulative, floating rate payments. Each capital note is scheduled to pay quarterly distributions which are expected to be fully franked. The Distribution Rate is equal to the sum of the three-month bank bill swap rate (BBSW) plus a fixed margin, adjusted for the corporate tax rate. If a Distribution is not paid, Holders have no right to receive that Distribution at any later time (non-cumulative); however, (subject to certain exceptions), the Company will not be entitled to declare or pay dividends on Ordinary Shares until and including the next Distribution Payment Date.

Subject to certain conditions, including APRA approval, Suncorp has the option to convert, redeem or resell the instruments on the optional exchange date. If still outstanding on the mandatory conversion date, the instruments will mandatorily convert into a variable number of the Company’s ordinary shares, subject to certain conditions being satisfied, and calculated in accordance with the conversion mechanics of the note terms.

Conversion may also occur following a regulatory or tax event or potential acquisition event, subject to APRA’s prior written approval and certain conditions being fulfilled. If APRA determines that a non-viability event has occurred in relation to the Company, all (or in some circumstances, some) of the instruments will be immediately converted into the Company’s ordinary shares or, if conversion cannot be effected for any reason within five business days, immediately and irrevocably terminated. Conversion is calculated according to the conversion mechanics contained within the note terms.

In the event of the winding-up of the Company, the rights of the Holders will rank equally, and in priority to the rights of the ordinary shareholders only.

LAGIC/Basel III fully compliant subordinated notes

	Margin					2024	2023
	above 90 day	Maturity	Holder	Optional		Number	Number
	BBSW	date	conversion date	redemption date	Issue date	on issue	on issue
SGL WSN	215 bps	5 Dec 2028	n/a	5 Dec 2023	5 Sep 2018	-	60,000
SGL WSN2	225 bps	1 Dec 2035	n/a	1 Dec 2025	1 Sep 2020	25,000	25,000
SGL WSN3	230 bps	1 Jun 2037	n/a	1 Jun 2027	5 Apr 2022	29,000	29,000
SGL WSN4	265 bps	1 Dec 2038	1 Dec 2030	1 Dec 2028	1 Mar 2023	25,000	25,000
SGL WSN5	235 bps	27 Jun 2034	n/a	27 Jun 2029	27 Sep2023	60,000	-

The Group issued $600 million of SGL WSN5 on 27 September 2023 and redeemed in full $600 million of SGL WSN on 5 December 2023. The subordinated notes pay quarterly interest payments at a floating rate equal to the sum of the three-month BBSW and the margin. All note interest payments are subject to the Solvency Condition. For all subordinated notes, except for SGL WSN5, SGL may, on any Optional Interest Payment Date, in its absolute discretion, defer the payment of the interest on the notes which would otherwise be payable on such date and unpaid interest is cumulative. SGL WSN5 interest is non-discretionary and any unpaid interest (i.e. due to the Solvency Condition) is cumulative.

The issuer has the option to redeem or, in the case of SGL WSN4, resell the instruments on the optional redemption date(s), subject to certain conditions, including APRA’s prior written approval. A holder conversion option is embedded into the SGL WSN4 terms, which allow the holder to convert the note to ordinary shares at the holder conversion date in line with the conversion mechanics contained within the note terms. If APRA determines that a non-viability event has occurred in relation to the issuing entity and, where relevant, its parent, all (or in some circumstances, some) of the subordinated notes will be immediately converted into the Company’s ordinary shares (or, if conversion cannot be effected for any reason within five business days, written off). Conversion is calculated in line with the mechanics outlined within the note terms. The rights of the holder rank in preference to the rights of the issuer’s ordinary share and capital notes holders and rank equally against all other subordinated note holders of the issuer.

118 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS SHAREHOLDER INFORMATION

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

16. Group capital management

The Group’s capital management strategy is to optimise shareholder value by managing the level, mix and use of capital resources. The primary objective is to ensure that there are sufficient capital resources to maintain and grow the business, in accordance with the Group’s risk appetite. The Group’s Internal Capital Adequacy Assessment Process (ICAAP) provides the framework to ensure that the Group and each regulated entity is capitalised to meet internal and external requirements. The Group is subject to, and in compliance with, externally imposed capital requirements set and monitored by APRA and the RBNZ.

In optimising shareholder value and managing the level and mix of capital, the timing of issuance of hybrid capital instruments is driven by a number of factors and in particular expected market conditions.

The ICAAP is reviewed regularly and, where appropriate, adjustments are made to reflect changes in the capital needs and risk profile of the Group. Capital targets are structured according to risk appetite, the regulatory framework and APRA’s non-operating holding company (NOHC) conditions. Details relating to the Group’s Capital management strategy are provided on page 14 of the Our financial performance section.

The Group has been operating under a NOHC structure since 2011, with associated NOHC conditions from APRA.

The NOHC conditions include the following:

Ά The Group is required to meet, at all times, the Level 3 Prudential Capital Requirement for Eligible Capital (and the Eligible Capital must satisfy certain requirements around the proportion of high-quality capital such as share capital and retained profits).
Ά Reductions in the Group’s capital base require APRA’s written approval (for example, planned payment of dividends that exceed the prior 12 months’ earnings).
Ά The NOHC activities of the Company, Suncorp Bank NOHC (SBGH Limited) are limited and defined in scope.
Ά Compliance with certain APRA Prudential Standards.

The Group has established comprehensive policies and procedures to ensure compliance with the NOHC conditions.

The following table summarises the capital position as at the reporting date.

The Group has established comprehensive policies and procedures to ensure compliance with the NOHC The following table summarises the capital position as at the reporting date.	conditions.
		Restated
	2024	2023
	$M	$M
Common Equity Tier 1 Capital	8,052	7,601
Additional Tier 1 Capital	1,154	1,169
Tier 1 Capital	9,206	8,770
Tier 2 Capital	1,620	1,611
Total Capital	10,826	10,381
Excess Common Equity Tier 1 Capital to target (ex dividends net of DRP)1	251	165
Excess Total Capital to target (ex dividends net of DRP)1	171	408

Group target represents the sum of the targets for the Bank, General Insurance Group, NZ Life business, and Group NOHC.

Annual Report 2023-24 119

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OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

Risk management

The Group applies a consistent and integrated approach to enterprise risk management (ERM).

The Group recognises that a strong risk culture, good governance and effective risk management are essential to achieving the Group’s strategy and business plan and maintaining the Group’s social licence to operate. The Group has systems, policies, processes and people in place to identify, measure, analyse, monitor, report and control or mitigate internal and external sources of material risk.

17. Risk management

The Board sets risk management direction through Suncorp’s purpose and strategy, risk appetite statement, desired risk culture, and associated policies, frameworks and standards. The Enterprise Risk Management Framework (ERMF) describes how risk is managed by the Group. ERMF categorises risks across four material risk categories which are defined below.

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Material Definition
Strategic risk Suncorp recognises and defines two types of strategic-level risk:
Ά Strategic disruption risk: Risks that could threaten the viability of Suncorp’s business model resulting from adverse
changes in the external environment, with respect to the economy, political landscape, regulation, technology,
climate, customer and social expectations and competitors. Detailed climate change disclosures are included in
Climate and environment approach on page 27 of the Annual Report.
Ά Strategic execution risk: The risk of failing to achieve strategic business objectives or execution of the
business strategy.
Financial risk Financial risk collectively includes credit, counterparty and contagion risk, market/investment risk, liquidity risk and
asset and liability management (ALM) risk.
Credit risk is the risk of loss from a debtor being unable to meet the terms of an obligation wherein the outstanding
amount is not able to be collected.
Counterparty risk is the risk of a debtor being unable to meet its contractual obligations in accordance with agreed
terms.
Contagion risk is the potential for a credit event of a debtor to impact additional creditors who are then unable to
meet their own obligations as debtors.
Market/investment risk is the potential for financial impact resulting from exposure to financial market mechanisms.
Main risk factors that Group is exposed to from operating within financial markets are foreign exchange rates,
interest rates, equity prices, inflation, and credit risk.
Liquidity risk is the risk that the Group will be unable to service its cash flow obligations today or in the future. The
raising of funds through capital instruments is also an associated consideration reflected as Funding Risk.
ALM risk is the risk of exposure to financial markets from a mismatch between assets and liabilities. It includes basis
risk which arises when assets and liabilities are not directly offset. Basis risk represents the difference in value / risk
profile between assets and liabilities and the potential unequal movements due to changes in underlying risk factors.
Insurance risk Insurance risk is the risk of financial loss as a result of inadequate or inappropriate product design, pricing,
underwriting, reserving, claims management and reinsurance, or because of adverse insurance concentration risk.
Product design risk is the risk of unintended claims arising from the product’s design, in a change in risk profile of the
business insured, or not maintaining appropriate product design principles.
Pricing risk is the risk that inadequate pricing will result in unintended loss and may occur where several assumptions
arising from the sale of products are inaccurately estimated.
Reinsurance risk relates to loss arising from a failure to have appropriate reinsurance arrangements in place,
potentially resulting in exposures beyond defined risk tolerance and unacceptable profit volatility with both financial
and capital impacts. This includes the risk that the reinsurance program is inadequately designed, and the risk that
appropriate cover is unavailable.
Underwriting risk is the risk of loss where an underwriting decision is made that inappropriately accepts, or rejects a
risk. This includes the risk of lost or missed opportunity arising from inadequate or unprofitable underwriting policies
or guidelines and the emergence of unintended adverse concentrations.
Reserving risk is the risk that policy reserves (money the Group set aside to service claims) will be insufficient to meet
the amount payable (actual claim amounts/settlements) when insurance claim liabilities crystallise.
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120 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS SHAREHOLDER INFORMATION

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

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Material Definition
Operational risk The risk of loss resulting from inadequate or failed internal processes and systems, errors by people or from external
events. This includes compliance and legal risk. Operational risk events have the potential to adversely impact
achievement of business objectives. The Group uses a risk and control self-assessment process to set the context,
identify, assess, manage, and monitor operational risks.
Suncorp Group is exposed to the following categories of market risk:
Categories of market risk Definition
Foreign exchange risk The risk of an asset or liability’s value changing unfavourably due to changes in currency exchange rates.
Inflation risk The impact of inflationary movements impacting the value of securities or liability estimation (e.g. reserving).
Interest rate risk The risk of loss of current and future earnings and unfavourable movements in the value of interest-bearing assets
and liabilities from changes in interest rates.
Equity risk The risk of loss of current and future earnings and unfavourable movement in the value of investment in equity.
Credit spread risk Credit spread is the difference in yield due to difference in credit quality. This is the risk of loss of current and future
earnings and unfavourable movement in the value of investments from changes in the credit spread as determined
by capital market sentiment or factors affecting all issuers in the market and not necessarily due to factors specific
to an individual issuer.
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Further discussions on the application of the Group’s risk management practices are presented in note 10 “Derivative financial instruments”, note 18 “Insurance risk management” and note 19 “Risk management for financial instruments”.

18. Insurance risk management

Insurance risk is managed through risk appetite statements, operation of the ERMF and supporting risk standards where adopted, with oversight from relevant management and Board risk committees in Australia and New Zealand.

The Board receives the Australian General Insurance Financial Condition Report from the Appointed Actuary which reports on a number of areas including the management of insurance risk within the entities. The Boards for the New Zealand General Insurer and Life company receive equivalent reports and advice in respect of obligations imposed by the RBNZ.

18.1 Underwriting risk

Underwriting risk is managed using Delegated Underwriting Authorities, which grant levels of underwriting authority to individuals and are reviewed and monitored regularly. Underwriting guidelines and policy wording design are used for risk assessment as well as past and expected future performance.

18.2 Reinsurance risk

The Group purchases reinsurance as part of its risk mitigation program. Reinsurance is placed on a proportional basis or non-proportional basis through quota share, aggregate stop loss, surplus and excess of loss treaties. Amounts recoverable from reinsurers are estimated in a manner consistent with underlying insurance contract liabilities and in accordance with the reinsurance contracts. Although the Group has reinsurance arrangements, it is not relieved of its direct obligations to its policyholders and thus a credit exposure exists with respect to reinsurance held, to the extent that any reinsurer is unable to meet its obligations. The Group’s placement of reinsurance is diversified such that it is neither dependent on a single reinsurer nor are the operations of the Group substantially dependent upon any single reinsurance contract.

18.3 Insurance concentration risk

The Group monitors insurance risk exposures by reportable segment.

A range of factors are considered when pricing individual risks, including profit potential, available data, customer impact and reputation impact. Individual risks underwritten are within Risk Net Acceptance Limits and the potential for accumulations are also considered. The Group mitigates its exposure to concentrations of insurance risk by holding a portfolio that is diversified across classes of business and by using reinsurance. Reinsurance covers insurance concentration risk that arises from natural disasters and other catastrophes. In determining catastrophe risk accumulation, the Group considers the Insurance Concentration Risk Charge (ICRC), a capital measure under APRA prudential standards. Reinsurers and their relative size within the reinsurance program are considered from a placement perspective and associated risk limits exist to avoid significant concentration to a small number of potential reinsurers. These concentrations are reviewed at least annually as part of the annual review process and on an ad hoc basis when significant business changes occur.

Annual Report 2023-24 121

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OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

19. Risk management for financial instruments

19.1 Credit risk

Exposure to credit risk from Group’s financial instruments arises primarily from:

Ά insurance premium receivables;

Ά reinsurance recoveries; and
Ά investments in interest-bearing securities and derivatives.

The carrying amount of the relevant asset classes in the consolidated SoFP represents the maximum amount of credit risk exposure at reporting date.

(a) Insurance premium receivables

Credit risk is managed by maintaining debtor control procedures including the monitoring of aged amounts to minimise overdue debts. Credit limits are set and enforced to limit credit exposures from business written through general insurance intermediaries. Where permissible by law, payment default will result in the termination of the insurance contract with the policyowner, eliminating both the credit risk and insurance risk for the unpaid balance. Collateral is not sought on these balances.

The ageing analysis is as follows:

risk and insurance risk for the unpaid balance. Collateral is not sought on these balances. The ageing analysis is as follows:
		Restated
	2024	20231
	$M	$M
Neither past due nor impaired	4,372	3,741
Past due 0-3 months	63	46
Past due >3 months	32	78
Impaired	9	9
	4,476	3,874

Comparative information has been restated to reflect the Group’s adoption of AASB 17 from 1 July 2023.

(b) Reinsurance recoveries

Credit risk with respect to reinsurance programs is minimised by placement of cover with a number of reinsurers with A or higher credit ratings. Eligible recoveries under reinsurance arrangements are monitored and managed internally, and by specialised reinsurance brokers operating in the international reinsurance market.

Collateral arrangements exist for non-regulated reinsurers. In certain cases, the Group requires letters of credit or other collateral arrangements to be provided to guarantee the recoverability of the amount involved. The Group holds $253 million (2023: $291 million) in collateral to support reinsurance recoveries on outstanding claims.

The following table provides information regarding credit risk exposure of reinsurance recoveries. The analysis classifies the assets according to Standard & Poor’s (S&P) counterparty credit ratings. Credit ratings are sourced from other globally recognised credit agencies, where S&P’s ratings are not available. AAA is the highest possible rating. Rated assets falling outside the range of AAA to BBB are classified as noninvestment grade.

		Restated
	2024	20231
	$M	$M
AAA	29	-
AA	821	1,305
A	257	686
BBB	8	2
Not rated	14	4
Total	1,129	1,997

Comparative information has been restated to reflect the Group’s adoption of AASB 17 from 1 July 2023.

122 Annual Report 2023-24

REMUNERATION REPORT FINANCIAL STATEMENTS SHAREHOLDER INFORMATION

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

The ageing analysis is as follows:

		Restated
	2024	20231
	$M	$M
Neither past due nor impaired	1,037	1,918
Past due 0-3 months	21	24
Past due >3 months	71	55
	1,129	1,997

Comparative information has been restated to reflect the Group’s adoption of AASB 17 from 1 July 2023.

(c) Investments in interest-bearing securities and derivatives

Interest-bearing securities are held in accordance with the investment mandates. Credit limits have been established within these guidelines to ensure counterparties have appropriate credit ratings. An investment framework is in place that sets and monitors investment strategies and arrangements.

Certain derivatives issuers have signed ISDA Credit Support Annex documentation to facilitate derivative transactions and manage credit risk (refer to note 11.2). The following table provides information regarding credit risk exposure of investments in interest-bearing securities and derivatives. The analysis classifies the assets according to S&P counterparty credit ratings. Credit ratings are sourced from other globally recognised credit agencies, where S&P ratings are not available.

	2024 2023 2024 2023
	Interest-bearing investment securities Derivative asset $M $M $M $M
AAA AA A BBB Non-investment grade Not rated	6,022 5,918 - - 3,972 3,860 19 26 3,754 2,537 62 77 2,559 2,646 - 1 58 64 - - - 1 - -
Total	16,365 15,026 81 104

19.2 Liquidity risk

The key objective of the Group’s liquidity and funding management is to ensure that it has sufficient available liquidity to meet the current and future obligations under both normal and stressed liquidity environments, and does not introduce an unacceptable level of funding risk. The following key facilities and arrangements are in place to mitigate liquidity risks:

Ά Investment portfolio mandates provide sufficient cash deposits to meet day-to-day obligations.
Ά Investment funds set aside within the investment portfolios can be realised to meet significant claims payment obligations.
Ά In the event of a major catastrophe, cash access is available under the terms of reinsurance arrangements.
Ά Mandated liquidity limits.
Ά Regularity of premiums received provides substantial liquidity to meet claims payments and associated expenses as they arise.

Annual Report 2023-24 123

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE CORPORATE GOVERNANCE

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

19.2 Liquidity Risk [continued]

Maturity analysis

The following table summarises the maturity profile of the Group’s financial liabilities based on the remaining undiscounted contractual obligations. For liquidity risk management purposes, the Group’s daily liquidity reporting is largely aligned to contractual maturity except where prescribed differently by APRA or where other methods are considered more appropriate. The Group supplements contractual maturity with other metrics including the liquidity coverage ratio and the net stable funding ratio to manage its liquidity risk.

Derivative liabilities designated in a hedging relationship are included according to their contractual maturity. Derivative liabilities which are not hedge accounted, or are in an economic hedge, are not included within the following tables as they are frequently settled and/or managed within the short term (refer to note 10).

	Carrying amount	At call	1 year or less	1 to 5 years	Over 5 years	Total cash fows
	$M	$M	$M	$M	$M	$M
2024
Payables and other liabilities	1,422	-	1,039	222	161	1,422
Loan capital1	2,525	-	733	1,459	764	2,956
	3,947	-	1,772	1,681	925	4,378
Financial liabilities held for sale –
Derivatives:
Contractual amounts receivable
(gross settled)	(1,547)	-	(849)	(644)	(177)	(1,670)
Contractual amounts payable
(gross and net settled)	1,809	-	1,016	746	183	1,945
	262	-	167	102	6	275
Of-balance sheet positions:
Guarantees entered into in the normal course of business	-	98	-	-	-	98
Commitments to provide loans and advances	-	11,715	-	-	-	11,715
	-	11,813	-	-	-	11,813
2023
Payables due to other banks	121	121	-	-	-	121
Deposits	51,178	37,144	14,339	389	-	51,872
Payables and other liabilities	3,058	-	2,600	259	199	3,058
Borrowings	24,009	-	14,232	11,113	461	25,806
Loan capital1	2,544	-	729	1,568	663	2,960
	80,910	37,265	31,900	13,329	1,323	83,817
Derivatives:
Contractual amounts receivable (gross settled)	(754)	-	(424)	(362)	(11)	(797)
Contractual amounts payable (gross and net settled)	1,237	-	713	577	12	1,302
	483	-	289	215	1	505
Of-balance sheet positions:
Guarantees entered into in the normal course of business	-	84	-	-	-	84
Commitments to provide loans and advances	-	11,602	-	-	-	11,602
	-	11,686	-	-	-	11,686

The cash flows for loan capital have been included at the earlier of optional call/exchange/redemption date and the mandatory conversion/maturity/next call date of each instrument. Cash flows include both principal and associated future interest estimated using estimated forward rates at the reporting date. For loan capital, interest payments for a number of securities are discretionary and/or may be deferred (refer to note 15). For the purposes of the maturity analysis, it is assumed discretionary interest payments are payable and no deferral to occur.

124 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

19.3 Market risk

(a) Foreign exchange risk

The Group’s foreign exchange risk exposure mainly arises from investments in overseas assets, including foreign issued interest-bearing securities, global equities and real assets. The exposure is managed via the use of cross currency swaps, forward foreign exchange and futures contracts. The Group also has operations in New Zealand creating an exposure to New Zealand Dollars.

A sensitivity analysis showing the impact on profit or loss for changes in foreign exchange rates for exposure as at the reporting date with all other variables including interest rates remaining constant is shown in the table below. The impact is before the effect of economic hedging which in accordance with the Group’s Risk Management policies are designed to largely offset foreign exchange movements. There is no impact on equity reserves.

The movements in foreign exchange rates used in the sensitivity analysis for the current financial year have been revised to reflect an updated assessment of the reasonable possible changes in foreign exchange rates over the next 12 months, taking into account observations and experience in the investment markets during the financial year.

	2024 2023
	Exposure at 30 June $M Change in FX rate % Proft (loss) after tax $M Exposure at 30 June $M Change in FX rate % Proft (loss) after tax $M
USD	971 +8 82 495 +10 35 -3 (33) -5 (17)
Other	889 +8 49 732 +5 24 -3 (20) -5 (25)

(b) Interest rate risk

Interest rate risk exposure arises mainly from investment in interest-bearing securities and from ongoing valuation of insurance liabilities.

The investment portfolios, which hold significant interest-bearing securities in support of corresponding outstanding insurance liabilities, are invested in a manner consistent with the expected duration of claims payments. Interest rate risk is also managed by maintaining a diversified portfolio of investment securities and the controlled use of interest rate derivative instruments. The below table considers the impact of interest rate risk on the interest-bearing investment securities including derivative financial instruments. The impact of interest rate changes on outstanding claims liabilities will partially offset this effect. Refer to note 8.3 for details of the impact on profit or loss before income tax to changes in key variables relating to outstanding claims liabilities, including movement in inflation and discount rates.

The table below shows the sensitivity of after tax profit or loss due to interest rates movements relating to interest-bearing financial assets held as at the reporting date. The sensitivity analysis assumes that interest rate changes occur at the reporting date and yield curves shift in a parallel manner. The analysis assumes no impact on equity reserves.

The movements in interest rates used in the sensitivity analysis for the current financial year have been revised based on an updated assessment of the reasonable possible changes in interest rates over the next 12 months, taking into account observations and experience in the investment markets during the financial year.

	2024 2023
	Exposure at 30 June $M Change in interest rate bps Proft (loss) after tax $M Exposure at 30 June $M Change in interest rate bps Proft (loss) after tax $M
Interest-bearing investment securities (including derivative fnancial instruments)	16,355 +15 (37) 14,985 +20 (42) -60 147 -100 219
Loan capital	2,544 +15 (2) 2,559 +20 (4) -60 10 -100 17

Annual Report 2023-24 125

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

19.3 Market risk [continued]

(c) Equity risk

The Group has exposure to equity risk through its investments in international and domestic equities. Equity risk is managed by incorporating a diverse holding of Australian and overseas equities and through the controlled use of derivative financial instruments.

The table below presents a sensitivity analysis showing the impact on profit or loss for price movements for exposures as at the reporting date with all other variables remaining constant. There is no impact on equity reserves.

The movements in equity prices used in the sensitivity analysis for the current financial year have been revised to reflect an updated assessment of the reasonable possible changes in equity prices over the next 12 months, taking into account observations and experience in the investment markets during the financial year.

	2024 2023
	Exposure at 30 June $M Change in equity prices % Proft (loss) after tax $M Exposure at 30 June $M Change in equity prices % Proft (loss) after tax $M
Australian equities and unit trusts	1,259 +7.5 67 1,181 +7.5 61 -15 (134) -15 (123)
International equities and unit trusts	523 +7.5 27 411 +7.5 22 -15 (55) -15 (43)

(d) Credit spread risk

The Group is exposed to credit spread risk through its investments in non-Australian Government-issued bonds (and other interest-bearing securities). This risk is mitigated by incorporating a diversified investment portfolio, establishing maximum exposure limits for counterparties and minimum limits on credit ratings, and managing to a credit risk diversity score limit.

The table below presents a sensitivity analysis on how credit spread movements could affect profit or loss for the exposure as at the reporting date. There is no impact on equity reserves.

The movements in credit spread used in the sensitivity analysis for the current financial year have been revised based on an updated assessment of the reasonable possible changes in credit spread over the next 12 months, taking into account observations and experience in the investment markets during the financial year.

	2024 2023
	Exposure at 30 June $M Change in credit spread bps Proft (loss) after tax $M Exposure at 30 June $M Change in credit spread bps Proft (loss) after tax $M
Credit exposure1	12,188 +40 (75) 10,780 +45 (74) -10 18 -20 33

Includes bonds issued by Australian states and territories, local and international government agencies and owned corporations, and supranational with exposure of $930 million (2023: $829 million). The Group’s credit spread risk is managed at aggregate level for non-Australian Government-issued bonds to maintain diverse credit portfolio in line with established risk exposure limits for asset classes, counterparties, and credit ratings.

126 Annual Report 2023-24

REMUNERATION REPORT FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

Group structure and consolidation

This section provides disclosures on the Company’s separate set of financial statements, the Company’s interest in subsidiaries, the fiduciary activities carried out by the Group on behalf of the trusts as trustee or custodian and any significant acquisitions or divestments during the year.

20. Parent entity and composition of the Group

20.1 Ultimate parent entity

20.1 Ultimate parent entity
2024	2023
Company $M	$M
Results of the Company for the fnancial year: Revenue Dividend and interest income from subsidiaries 1,033	543
Interest and trust distribution income on fnancial assets at FVTPL 151	92
Other income 10	11
Total revenue 1,194	646
Expenses Impairment loss on investment in subsidiaries -	(52)
Interest expense on fnancial liabilities at amortised cost (166)	(118)
Operatingexpenses (235)	(130)
Total expenses (401)	(300)
Proft before income tax 793	346
Income tax beneft 53	37
Proft for the fnancialyear 846	383
Total comprehensive income for the fnancialyear 846	383
Company $M	$M
Financial position of the Company as at the end of the fnancial year: Current assets Cash and cash equivalents 100	40
Financial assets designated at FVTPL 447	352
Assets held for sale 5,137	-
Due from subsidiaries 101	73
Other assets 8	11
Total current assets 5,793	476
Non-current assets Investment in subsidiaries 8,907	13,445
Due from subsidiaries 817	1,393
Deferred tax assets 49	4
Other assets 38	23
Total non-current assets 9,811	14,865
Total assets 15,604	15,341
Current liabilities Payables and other liabilities 22	35
Current tax liabilities 78	3
Due to subsidiaries 90	41
Total current liabilities 190	79
Non-current liabilities Loan capital 2,525	2,544
Total non-current liabilities 2,525	2,544
Total liabilities 2,715	2,623
Net assets 12,889	12,718
Equity Share capital 12,506	12,407
Retainedprofts 383	311
Total equity 12,889	12,718

Annual Report 2023-24 127

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Notes to the consolidated financial statements For the financial year ended 30 June 2024

20.1 Ultimate parent entity [continued]

Capital and expenditure commitments

There are no capital and expenditure commitments contracted for but not provided in the SoFP of the Company.

Contingent liabilities

The parent entity issued letters of comfort for certain subsidiaries. In this capacity, SGL ensures that subsidiaries continue to meet their obligations and commitments.

Parent entity guarantees

There are no parent entity guarantees in relation to the debts of its subsidiaries.

20.2 Material subsidiaries of Suncorp Group Limited

Material subsidiaries of Suncorp Group Limited Class of shares Country of incorporation	2024 2023
	Equity holding
	% %
Suncorp Insurance Holdings Limited Ordinary Australia AAI Limited1 Ordinary Australia Australian Associated Motor Insurers Pty Ltd Ordinary Australia Suncorp Insurance (General Overseas) Pty Ltd Ordinary Australia Suncorp Group Holdings (NZ) Limited Ordinary New Zealand Vero Insurance New Zealand Limited Ordinary New Zealand Vero Liability Insurance Limited Ordinary New Zealand AA Insurance Limited2 Ordinary New Zealand SBGH Limited3 Ordinary Australia Suncorp-Metway Limited3 Ordinary Australia APOLLO Series Trusts (various)3 Units Australia Suncorp Covered Bond Trust3 Units Australia Suncorp Life Holdings Limited Ordinary Australia Suncorp Insurance (Life Overseas) Pty Ltd Ordinary Australia Asteron Life Limited Ordinary New Zealand Suncorp Staf Pty Ltd Ordinary Australia SuncorpCorporate Services PtyLtd Ordinary Australia	100 100 100 100 100 100 100 100 100 100 100 100 100 100 68 68 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100

Also registered as an overseas company in New Zealand.
The New Zealand Automobile Association Limited holds the remaining shares in AA Insurance Limited.
SBGH Limited, Suncorp-Metway Limited and the structured entities (APOLLO Series Trusts and Suncorp Covered Bond Trust), were divested as part of the Suncorp Bank sale. Refer to note 27.

Accounting policies

The Group’s consolidated financial statements are the financial statements of the Company and all its subsidiaries, presented as those of a single economic entity. Intra-group transactions and balances are eliminated on consolidation.

Subsidiaries

Subsidiaries are entities controlled by the Group which includes companies, managed funds and trusts. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are consolidated from the date when control commences until the date on which control ceases.

Non-controlling interests recognised as equity and managed funds units recognised as a liability arise when the Group does not hold 100% of the shares or units in a subsidiary. They represent the external equity or liability interests in non-wholly owned subsidiaries of the Group.

128 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

21. Goodwill and other intangible assets

					Internally
			Customer		generated
			contracts & other		software in
	Goodwill	Brands	relationships	Software	development	Total
	$M	$M	$M	$M	$M	$M
20241
Gross carrying amount	5,006	631	609	832	76	7,154
Accumulated amortisation and impairment losses	(547)	(364)	(604)	(633)	-	(2,148)
Balance at the end of the fnancial	4,459	267	5	199	76	5,006
year
Movements in intangible assets
Balance at the beginning of the fnancial year	4,721	279	11	164	119	5,294
Acquisitions	-	-	-	-	68	68
Amortisation	-	(12)	(6)	(73)	-	(91)
Transfers2	-	-	-	108	(111)	(3)
Transferred to held for sale (refer to note 27)	(262)	-	-	-	-	(262)
Foreign currencyexchange movement	-	-	-	-	-	-
Balance at the end of the fnancial	4,459	267	5	199	76	5,006
year
Maximum remaining useful life	Indefnite	33years	3years	4years	n/a
2023 (Restated)
Gross carrying amount	5,279	632	618	724	119	7,372
Accumulated amortisation and impairment losses	(558)	(353)	(607)	(560)	-	(2,078)
Balance at the end of the fnancial	4,721	279	11	164	119	5,294
year
Movements in intangible assets
Balance at the beginning
of the fnancial year	4,719	291	16	108	134	5,268
Acquisitions	-	-	-	-	84	84
Amortisation	-	(12)	(5)	(43)	-	(60)
Transfers	-	-	-	99	(99)	-
Foreign currency
exchange movement	2	-	-	-	-	2
Balance at the end of the fnancial	4,721	279	11	164	119	5,294
year
Maximum remaining useful life	Indefnite	34years	4years	5years	n/a

In 2024, the Group reclassified the goodwill, the cost and accumulated amortisation of other intangible assets in relation to the sale of Suncorp Bank to assets held for sale. Refer to note 27.
Of the $111 million transferred ‘internally generated software in development’, $3 million was transferred to ‘plant and equipment’, which is disclosed within the consolidated SoFP category of ‘Property, plant and equipment’.

Annual Report 2023-24 129

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Notes to the consolidated financial statements For the financial year ended 30 June 2024

21.1 Impairment test for cash-generating units containing goodwill

For the purpose of the annual impairment test, goodwill is allocated to groups of cash-generating units (CGU) which represent the Group’s operating segments (refer to note 3.1). The carrying amount of each CGU is then compared to its recoverable amount.

The value of goodwill allocated to each group of CGUs is disclosed in note 3.1. The value of goodwill allocated to the Suncorp New Zealand operating segment is not significant in comparison to the Group’s total carrying amount of goodwill.

The recoverable amount for the banking CGU is determined based on fair value less cost to sell.

The recoverable amounts for the Consumer Insurance, Commercial & Personal Injury, and Suncorp New Zealand operating segments, are determined based on value in use.

Significant estimates, judgements and assumptions

Value in use for Consumer Insurance and Commercial & Personal Injury

The recoverable amounts of Consumer Insurance and Commercial & Personal Injury CGUs are its value in use and is determined by discounting the future cash flows generated from the continuing use of the unit and are based on the latest three-year business plans projected for years four and five using key assumptions to cover a five-year period. A terminal growth rate of 2.5% (2023: 2.5%) is used to extrapolate cash flows beyond the five-year projections which does not exceed the long-term average growth rate for the industry.

The key assumptions for Consumer Insurance and Commercial & Personal Injury CGUs include gross earned premium growth, projected insurance loss ratios, operating expense growth, and expected operational and regulatory capital levels. The cash flow projections and values assigned to the key assumptions represent management’s assessment of future trends in the industry and are based on both external and internal sources of data.

For Consumer Insurance and Commercial & Personal Injury CGUs, the weighted average cost of capital is used as the post-tax discount rate. The discount rates reflect an equity beta and a market risk premium sourced from observable market inputs.

Discount rates	2024	2024	2023
		Pre-tax		Pre-tax
	Post-tax	equivalent	Post-tax	equivalent
	%	%	%	%
Consumer Insurance	7.8	10.3	7.6	10.3
Commercial & Personal Injury	7.8	10.3	7.6	10.3

The Group has considered and assessed reasonably possible changes for above key assumptions and have not identified any instances that could cause the carrying amount of any of the CGUs to exceed its recoverable amount.

Accounting policies

Goodwill is recognised at cost from business combinations and is subsequently measured at cost less accumulated impairment loss. Intangible assets are recognised at cost less any accumulated amortisation and any accumulated impairment losses. Where an intangible asset is acquired in a business combination, the cost of that asset is its fair value at acquisition date.

Internally generated intangible assets such as software are recognised at cost, which comprises all directly attributable costs necessary to purchase, create, produce, and prepare the asset to be capable of operating in the manner intended by management. All other expenditure, including expenditure on software maintenance, research costs and brands is recognised as an expense as incurred.

Amortisation

Intangible assets with finite lives are amortised over the estimated useful lives from the date the asset is available for use. Amortisation is charged to profit or loss in a manner that reflects the pattern in which the asset’s future economic benefits are expected to be consumed using straight-line or diminishing balance methods. All intangible assets except goodwill have finite useful lives. The maximum remaining useful lives as outlined in note 21 are reviewed annually.

Intangible assets deemed to have an indefinite useful life are not amortised but are tested for impairment at least annually.

Impairment

Goodwill and other intangible assets are assessed for indicators of impairment at each reporting date. If any such indication exists, the asset’s recoverable amount is estimated in order to determine the extent of the impairment loss (if any).

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (as part of CGU) which may be an individual asset or a group of assets. The recoverable amount is the greater of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a post-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. In assessing fair value less cost to sell, an earnings’ multiple applicable to that type of business or actual offer prices less estimated cost of disposal is used.

130 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

Impairment (continued)

Impairment losses are recognised in profit or loss if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses, if any, recognised in respect of the CGU are allocated first to reduce the carrying amount of any goodwill allocated to the CGU and then to reduce the carrying amount of the other assets in the unit on a pro-rata basis.

An impairment loss recognised for goodwill is not reversed.

Other disclosures

This section includes other information about the Group’s operations that must be disclosed to comply with the Australian Accounting Standards, Corporations Act and ASX Listing Rules. Also set out in this section are details of the employee benefit arrangements including share-based payments, an overview of key management personnel remuneration and related party arrangements.

22. Notes to the consolidated statement of cash flows

22.1 Reconciliation of cash flows from operating activities

22.1 Reconciliation of cash fows from operating activities
		Restated
	2024	2023
	$M	$M
Proft for the fnancial year	1,229	1,082
Non-cash items
Impairment expense on fnancial assets	13	17
Impairment loss on property, plant and equipment	5	34
Amortisation and depreciation expense	236	203
Change in fair value relating to investing and fnancing activities	(408)	(303)
Other non-cash items	180	260
Change in operating assets and liabilities
Decrease in insurance assets and liabilities	48	153
Decrease in reinsurance contract assets	741	583
Net movement in tax assets and liabilities	164	125
Increase in trading securities	66	505
Increase in loans and advances	(2,617)	(5,192)
Decrease in other assets	(19)	(119)
Increase in deposits	2,577	3,303
Decrease in payables and other liabilities	282	224
Net cash from operating activities	2,497	875

Accounting policies

Cash and cash equivalents include cash on hand, cash at branches, cash on deposit, balances with the RBA, highly liquid short-term investments, money at short call, and securities held under reverse repurchase agreements with an original maturity of three months or less. Receivables due from and payables due to other banks are classified as cash equivalents for cash flow purposes. Bank overdrafts are shown within financial liabilities unless there is a right of offset.

Receivables due from and payables due to other banks include collateral posted or received on derivative positions, nostro balances and settlement account balances. They are carried at the gross value of the outstanding balance.

Annual Report 2023-24 131

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

22.2 Changes in liabilities arising from financing activities

22.2 Changes in liabilities arising from fnancing activities
	Borrowings	Loan capital
	$M	$M
Balance as at 1 July 2022	20,910	2,622
Cash fows
Proceeds	20,964	250
Repayments	(18,176)	(330)
Transaction costs	(9)	(2)
Non-cash changes
Fair value changes	(4)	-
Foreign exchange movement	108	-
Other movements	216	4
Balance as at 30 June 2023	24,009	2,544
Cash fows
Proceeds	24,259	760
Repayments	(23,856)	(775)
Transaction costs	(11)	(11)
Non-cash changes
Fair value changes	19	-
Foreign exchange movement	(1)	-
Other movements	357	7
Balance as at 30 June 2024	24,776	2,525

23. Employee benefits

The following employee expenses from continuing operations have been included in the consolidated SoCI under the line items: ‘Insurance service expense’ and ‘Fees, overheads and other expenses’.

service expense’ and ‘Fees, overheads and other expenses’.
		Restated
	2024	2023
	$M	$M
Wages, salaries, share-based payments and other staf costs1	1,293	1,272
Defned contribution superannuation expenses	130	118
Total employee expenses	1,423	1,390

Includes $21,378,000 (2023: $16,126,000) relating to equity-settled share-based payment transactions.

132 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

24. Share-based payments

Eligible employees of the Group have the right to participate in the Group’s share plans. Shares, share rights and performance rights are offered in these share plans and are granted by the Company to eligible employees of the Group.

Shares required for the equity plans are acquired on the ASX by a special purpose trustee. Shares can only be granted or issued under the plans if the number to be granted or issued will not exceed 5% of the Company’s total shares on issue when aggregated with the number of shares granted or issued during the previous five years for all share plans operated by the Company.

24.1 Long-term incentives (performance rights)

Long-term incentives (LTI) are performance rights granted to eligible executives. These are equity-settled and in limited circumstances cash-settled at the Board’s discretion. The Board determines the value of performance rights granted (offered) based on the executive’s LTI opportunity as a percentage of their fixed pay. Vested shares carry full entitlement to dividends from the grant date (less any taxes paid). The FY24 LTI award only vests if services and performance measures are achieved over a three-year performance period. The performance measures are outlined below:

Ά Measure 1: Relative total shareholder return (TSR) against a broad-based comparator group (35% weighting). The broad-based comparator group comprises the companies within the S&P / ASX 100 index as at 1 July 2023.
Ά Measure 2: Relative TSR against a customised comparator group (35% weighting). The customised comparator group comprises S&P / ASX 100 financial organisations that are domiciled in Australia as at 1 July 2023.
If a company in either TSR comparator group is suspended or delisted from the ASX during the performance period, it may be removed from the comparator group. There may, therefore, be fewer than 100 companies in the broad-based comparator group and fewer than 15 companies in the customised comparator group for that period.
Ά Measure 3 (new to FY24): Relative Suncorp Group Insurance Customer Net Promoter Score (NPS) (Consumer Australia) against a customised comparator group (20% weighting). The customised comparator group consists of eight insurance brands, covering the ‘autoclub’ and ‘price challenger’ general insurers.
Ά Measure 4 (new to FY24): Relative Trust and Reputation against a customised comparator group (10% weighting). The customised comparator group consists of ten insurance entities.

A LTI performance measure will only vest if the Company achieves a relative outcome of 50th percentile (median) or above for that performance measure. Any performance rights not vested at the end of the performance period will lapse. Further details on these performance measures, deferral periods, the vesting schedule and other terms and conditions can be found on page 64 of the Remuneration Report.

The fair value of services received in return for LTI granted is measured by reference to the fair value of the shares granted. Where vesting of the LTI is dependent on meeting market performance criteria based on TSR, the estimate of the fair value of the shares is measured based on a Monte Carlo simulation pricing model. The vesting of the shares is also subject to non-market conditions (such as service conditions, Customer NPS and Trust and Reputation); however, these are not taken into account in the grant date fair value measurement of the services received.

Inputs into the model include expected volatility which is based on the historic volatility of the Company’s share price, dividend yield and a risk-free interest rate based on Australian Government bonds. The inputs for measurement of grant date fair value and the number of unvested performance rights at the financial year end are as follows:

	2024 2023
Grant date Fair value at grant date	Inputs for measurement of fair value atgrant date Share price Expected volatility Vesting period Risk-free interest rate Number of shares unvested Number of shares unvested
19 October 2022 $4.94 19 October 2022 $5.97 18 October 2023 $8.14 18 October 2023 $7.60 18 October 2023 $14.14	$10.63 29% 3 Years 3.46% 366,672 430,200 $10.63 29% 3 Years 3.46% 366,676 430,202 $14.14 24% 3 Years 4.03% 253,416 - $14.14 24% 3 Years 4.03% 253,412 - $14.14 - 3 Years - 217,214 -
	1,457,390 860,402

Annual Report 2023-24 133

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OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

Accounting policies

The fair value of share-based payments is recognised as an expense on a straight-line basis over the vesting period, with a corresponding increase in equity. The fair value is calculated on grant date as the fair value of each share granted multiplied by the number of shares expected to eventually vest. The fair value of the share-based payments is based on the market price of the shares, dividend entitlements, and market vesting conditions (e.g. share price-related performance criteria) upon which the shares were granted. Non-market vesting conditions (e.g. service conditions, Customer NPS, and Trust and Reputation) are taken into account by adjusting the number of shares which will eventually vest and are not taken into account in the determination of the grant date fair value. On a cumulative basis, no expense is recognised for shares granted that do not vest due to a non-market vesting condition not being satisfied.

24.2 Other equity-settled share plans

The Group operates other equity-settled share plans that are not subject to performance conditions. Key features are set out below:

==> picture [498 x 419] intentionally omitted <==

----- Start of picture text -----

Suncorp employee share Suncorp equity participation Short-term incentive (STI) Share rights
Equity plans plan (tax exempt) plan deferred plan and special incentives
Eligible plan participant Eligible employees below Employees can elect to Group CEO, ELT, EGM and Eligible employees in senior
Executive General Manager participate eligible employees in senior roles
(EGM) level roles
Basis of share grant/issue Market value of shares up to Employees fund the A portion of the total STI is Value of grants is based on a
$1,000 per employee per year acquisition of shares to be delivered as share rights. percentage of the employee’s
may be granted by the Board held under this Plan from fixed pay and Board
having regard to the Group’s their pre-tax remuneration STI is determined having discretion
regard to Group, function
overall performance up to a maximum value of
and individual performance
$5,000 per year
and determined prior to the
ex-dividend date.
Vesting Fully vested, not subject to As the acquisition of shares Group CEO and ELT: 50% Subject to service and/or
forfeiture is funded through the of the Group CEO’s STI, and performance conditions until
Restricted from sale for a employee’s remuneration, the 35% of the ELT STI is delivered the date of vesting
shares are fully vested at the in share rights, with half
three-year period unless
date of acquisition vesting on each of the first
the employee ceases and second anniversaries.
employment with Suncorp
within this period EGMs: At least 30% of the STI
is delivered in share rights,
with one third vesting on each
of the first, second and third
anniversaries.
Eligible employees in senior
roles: 15% of the STI is
delivered in share rights,
with half vesting on each
of the first and second
anniversaries.
Dividend entitlements Full entitlement to dividends Full entitlement to dividends Full entitlement to dividend Share rights plan has full
from when the shares are from when the shares are equivalents paid on any entitlement to dividend
acquired and held in the Plan acquired and held in the Plan vested shares, equal to the equivalents paid on any
notional net dividends earned vested shares, equal to the
on vested shares over the notional net dividends earned
deferral period. on vested shares over the
deferral period. Generally,
special incentives do not have
any entitlements to dividend
equivalents.
Fair value Market value of the shares on Market value of the shares on Discounted cash flow model Discounted cash flow model
the date they were granted the date they were acquired incorporating the expected incorporating the expected
share price at vesting date share price at vesting date
and expected dividend and expected dividend
entitlements, discounted from entitlements, discounted from
the vesting date to the grant the vesting date to the grant
date date
----- End of picture text -----

447,666 share rights (2023: 883,762 share rights) at fair value $6,141,585 (2023: $5,397,768) were granted during the financial year. The total number of shares acquired through the Suncorp Equity Participation Plan was 194,486 (2023: 217,633 shares), with a fair value of $2,801,477 (2023: $2,541,052).

134 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS SHAREHOLDER INFORMATION

Notes to the consolidated financial statements For the financial year ended 30 June 2024

24.2 Other equity-settled share plans (continued)

The Board approved to grant each eligible employee of ordinary shares of the Company to the value of $750 (2023: $nil) under the Suncorp Employee Share Plan (tax exempt) for the financial year.

Under the STI deferred plan, share rights are offered to eligible employees in August following completion of the performance period. The total number of share rights offered during the financial year was 712,420

(2023: 585,633 shares), at a total fair value of $9,781,527 (2023: $6,822,625). The fair value of the STI deferred plan is expensed from the start of the performance period to the end of the deferral period. Total expense of

$8,189,791 (2023: $7,840,733) relating to the STI deferred plan is included in ‘Fees, overheads and other expenses’ in the consolidated SoCI.

24.3 Reconciliation of outstanding share plans

LTI, STI deferred plan, share rights and special incentives

The following table summarises the movement and weighted-average fair value at grant date of LTI and other equity-settled share plans with vesting conditions during the year.

			Share rights
	LTI performance	STI deferred	and special
	rights	plan	incentives	Total
Outstanding as at 1 July 2022	2,164,224	822,184	668,835	3,655,243
Granted during the fnancial year	860,402	585,633	883,762	2,329,797
Vested and allocated during the fnancial year	-	(391,640)	(237,435)	(629,075)
Forfeited or withdrawn duringthe fnancialyear	(2,164,224)	(23,108)	(35,185)	(2,222,517)
Outstanding as at 30 June 2023	860,402	993,069	1,279,977	3,133,448
Weighted-average fair value atgrant date	$5.46	$11.65	$6.11
Granted during the fnancial year	782,755	712,420	447,666	1,942,841
Vested and allocated during the fnancial year	-	(504,715)	(222,868)	(727,583)
Forfeited or withdrawn duringthe fnancialyear	(185,767)	(116,806)	(187,887)	(490,460)
Outstanding as at 30 June 2024	1,457,390	1,083,968	1,316,888	3,858,246
Weighted-average fair value atgrant date	$9.75	$13.73	$13.72

Suncorp employee share plan (tax exempt)

The following table summarises the shares granted under the Suncorp Employee Share Plan (tax exempt).

			Number of
	Allocation		shares allocated	Total number of	Issue price	Total fair value
Period	date	Participants	per participant	shares allocated	$	($000)
2024	n/a	-	-	-	-	-
2023	26 Oct 2022	11,797	46	542,662	10.83	5,879

Suncorp equity participation plan

The following table summarises the shares acquired under the Suncorp Equity Participation Plan.

		Number of	Average	Total purchase
		shares	purchase price	consideration
Period	Participants	purchased	$	($000)
2024	10,525	194,486	14.40	2,801
2023	9,368	217,633	11.68	2,541

Annual Report 2023-24 135

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

25. Key management personnel and related party disclosures

25.1 Key management personnel disclosures

Information regarding key management personnel (KMP) remuneration, loans and equity instruments disclosures are included on page 54 of the Remuneration Report.

KMP compensation is included in “Employee benefits” expense (refer to note 23). Its categorisation is as follows:

	2024	2023
	$000	$000
Short-term employee benefts	17,637	17,747
Long-term employee benefts	148	208
Post-employment benefts	635	610
Share-based payments	11,547	4,655
	29,967	23,220

Loans to KMP and their related parties are secured housing loans and asset lines provided in the ordinary course of business. All loans have normal commercial terms, which may include staff discounts at the same terms available to all employees of the Group. The loans may have offset facilities, in which case the interest charged is after the offset. No amounts have been written down or recorded as specific provisions, as the balances are considered fully collectable.

Details regarding the aggregate of loans made, guaranteed or secured by any entity in the Group to KMP and their related parties are as follows:

	2024 2023
	Key management personnel $000 Other related parties $000 Key management personnel $000 Other related parties $000
Closing balance Interest charged	554 - 1,394 - 48 - 61 -

25.2 Related party transactions with joint venture entities and other related parties

	2024	2023
	$000	$000
The aggregate amounts included in the determination of proft before tax that resulted from transactions with related
parties are:
Other income received or due and receivable:
Joint ventures	51,551	57,718
Aggregate amounts receivable from, and payable to, each class of related parties at reporting date:
Receivables:
Joint ventures
Payables:	-	74,060
Joint ventures	156	148

Transactions between the Group and joint venture entities consisted of fees received and paid for information technology services, investment management services, overseas management services, property development finance facilities and reinsurance arrangements. All these transactions were on a normal commercial basis.

136 Annual Report 2023-24

REMUNERATION REPORT FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Notes to the consolidated financial statements

For the financial year ended 30 June 2024

26. Commitments

26.1 Credit commitments

In the ordinary course of business, various types of contracts are entered into relating to the financing needs of customers. Commitments to extend credit, letters of credit, guarantees, warranties and indemnities are classed as financial instruments and attract fees in line with market prices for similar arrangements and reflect the probability of default. They are not sold or traded and are not recorded in the consolidated statement of financial position. The Group uses the same credit policies and assessment criteria in making these commitments and conditional obligations as it does for on-balance sheet instruments. These commitments would be classified as loans and advances in the consolidated SoFP on the occurrence of the contingent event.

Detailed below are the notional amounts of credit commitments together with their credit equivalent amounts. Credit equivalent amounts are determined in accordance with the capital adequacy guidelines set out by APRA.

	2024	2023
	$M	$M
Notional amounts
Guarantees entered into in the normal course of business	98	84
Commitments to provide loans and advances	11,715	11,602
	11,813	11,686
Credit equivalent amounts
Guarantees entered into in the normal course of business	98	84
Commitments to provide loans and advances	5,877	5,998
	5,975	6,082

26.2 Other commitments

The Group has lease commitments of $21 million (2023: $28 million) which have not been recognised as lease liabilities in the consolidated SoFP, as the respective lease commencement dates are after the end of the financial year.

Expenditure for the acquisition of property, plant and equipment and other expenditure contracted for but not provided in the consolidated SoFP was $3 million (2023: $6 million).

27. Sale of Suncorp Bank

On 18 July 2022, following a comprehensive strategic review, the Group announced it had signed a SPA with ANZ to sell Suncorp Bank. The transaction received approvals from the Australian Competition Tribunal on 20 February 2024 and the Federal Treasurer under the Financial Sector (Shareholdings) Act on 28 June 2024. The Queensland Government also passed legislation in June 2024 to amend the Metway Merger Act, with an effective proclamation upon completion of sale.

In accordance with AASB 5, the assets and liabilities comprising the Suncorp Bank disposal group are classified as held for sale in the statement of financial position and presented as “Assets held for sale – Suncorp Bank” and “Liabilities directly associated with assets held for sale – Suncorp Bank”. Comparative balances of these assets and liabilities are not required to be reclassified and the relevant disclosures are included in the respective notes to the financial statements. Suncorp Bank being a major line of business, meets the definition of a discontinued operation as at 30 June 2024. Thus, the financial results of the banking division are disclosed separately on the face of the statement of profit or loss and cash flows, including comparatives.

The sale of Suncorp Bank to ANZ was completed subsequent to end of financial year on 31 July 2024. In accordance with the signed SPA with ANZ, a cash consideration of $6,247 million was paid on 31 July 2024, including a payment of $1,170 million for the internal loan notes issued by Suncorp Bank to Suncorp Group pre-completion. The completion payment is subject to customary adjustments, which are expected to be finalised in the half-year ending 31 December 2024. The transaction is anticipated to result in net proceeds of around $4,100 million and an accounting gain of $235 million to be recognised in the half-year ending 31 December 2024. Completion is a non-adjusting subsequent event.

As part of the sale, Suncorp Group provided warranties and indemnities to ANZ under the SPA and TSA, which are disclosed as contingent liabilities in note 29.2 “Contingent liabilities”.

Annual Report 2023-24 137

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Notes to the consolidated financial statements For the financial year ended 30 June 2024

27.1 Profit from discontinued operation

Suncorp Bank constituted a reportable segment of the Group’s business, and it was classified as a discontinued operation in the current financial year. The table below presents the profit from discontinued operation – Suncorp Bank for the financial year ended 30 June 2024 and the comparative period, and is presented separately from the consolidated SoCI.

and the comparative period, and is presented separately from the consolidated SoCI.
	2024	2023
	$M	$M
Interest income	4,207	3,075
Interest expense	(2,839)	(1,667)
Net interest income	1,368	1,408
Other operating income	(10)	23
Impairment expense on fnancial assets	(13)	(17)
Operating expenses	(804)	(754)
Net proft before income tax	541	660
Income tax expense	(162)	(198)
Proft after tax – Suncorp Bank	379	462
Transaction and separation costs	(173)	(119)
Income tax beneft	52	36
Proft from discontinued operation – Suncorp Bank	258	379

27.2 Assets and liabilities held for sale

	20241
	Note $M
Assets
Cash and cash equivalents	1,742
Receivables due from other banks	739
Trading securities	9 2,154
Derivatives	10 283
Investment securities designated at FVOCI	9 9,849
Loans and advances	69,715
Property, plant and equipment	56
Deferred tax assets	121
Goodwill and other intangible assets	262
Other assets	245
Total assets held for sale	85,166
Liabilities
Payables due to other banks	118
Deposits	53,755
Derivatives	10 304
Payables and other liabilities	659
Provisions	2
Borrowings	24,776
Total liabilities held for sale	79,614
Net assets	5,552

Amounts are net of intercompany balances.

138 Annual Report 2023-24

REMUNERATION REPORT FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

Notes to the consolidated financial statements For the financial year ended 30 June 2024

Accounting policies

As at 30 June 2024, assets and liabilities held for sale were measured at the lower of Suncorp Bank’s carrying amount and fair value less costs to sell. Accounting policies of assets exempt from this requirement are included in the following notes:

Ά Deferred tax assets (refer to note 4.3).
Ά Trading securities (refer to note 9).
Ά Investment securities designated at FVOCI (refer to note 9).
Ά Derivatives (refer to note 10).
Ά Loans and advances (refer below).

Loans and advances

Loans and advances are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are facilities the Group provides directly to customers or through third party channels.

Financial assets are classified at amortised cost where cash flows are SPPI, and the business model is held-to-collect. Loans and advances are included in this category. They are initially measured at fair value plus any directly attributable transaction costs and subsequently measured at amortised cost less any impairment losses (refer to note 27.4).

27.3 Cash flows from discontinued operation

The table below presents the net cash from (used in) operating, investing and financing activities for discontinued operation – Suncorp Bank for the year ended 30 June 2024 and the comparative period. It includes the cash flows of Suncorp Bank, plus the incurred transaction and separation costs, which are part of the net cash used in investing activities.

transaction and separation costs, which are part of the net cash used in investing activities.
	2024	2023
	$M	$M
Net cash from (used in) operating activities	611	(818)
Net cash used in investing activities	(3,177)	(271)
Net cash from fnancing activities	122	2,620
Net cash (outfows) infows from discontinued operation – Suncorp Bank	(2,444)	1,531

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Notes to the consolidated financial statements For the financial year ended 30 June 2024

27.4 Provision for impairment on financial assets from discontinued operation

27.4.1 Reconciliation of provision for impairment on financial assets from discontinued operation

The table below shows the reconciliation of ECL, specific provision (SP) and gross carrying amount for loans and advances (GLA) for the financial year ended 30 June 2024.

	Collective provision Stage 1 Stage 2 Stage 3 Stage 3 SP Total
	GLA $M ECL $M GLA $M ECL $M GLA $M ECL $M GLA $M SP $M GLA $M Provision $M
As at 1 July 2022	60,154 88 1,336 63 480 29 103 37 62,073 217
Transfers: Transfer to stage 1 Transfer to stage 2 Transfer to stage 3 New loans and advances originated Net increase (release) of ECL/SP Loans and advances derecognised SP written-of Unwind of discount	601 26 (520) (23) (77) (2) (4) (1) - - (889) (19) 956 21 (59) (1) (8) (1) - - (174) (2) (111) (6) 242 6 43 2 - - 18,849 60 - - - - - - 18,849 60 - (35) - 34 - 7 - 2 - 8 (12,962) (19) (409) (18) (188) (19) (42) - (13,601) (56) - - - - - - - (6) - (6) - - - - - - - (4) - (4)
As at 1 July 2023	65,579 99 1,252 71 398 20 92 29 67,321 219
Transfers:
Transfer to stage 1	429 17 (358) (15) (69) (2) (2) - - -
Transfer to stage 21	(8,897) (46) 8,970 48 (70) (2) (3) - - -
Transfer to stage 3	(258) (6) (179) (12) 414 18 23 - - -
New loans and advances originated	16,618 52 - - - - - - 16,618 52
Net increase (release) of ECL/SP	- (33) - 42 - 1 - 1 - 11
Loans and advances derecognised	(13,498) (27) (384) (19) (78) (6) (50) - (14,010) (52)
SP written-of	- - - - - - - (13) - (13)
Unwind of discount	- - - - - - - (3) - (3)
As at 30 June 2024	59,973 56 9,301 115 595 29 60 14 69,929 214
Provision for impairment on:
Loans and advances	(49) (108) (29) (14) (200)
Commitments & guarantees	(7) (7) - - (14)
Net carrying amount as at 30 June 2024	59,917 9,186 566 46 69,715

During the year, the Group reviewed its rules and approach to determining Significant Increase in Credit Risk (SICR). This resulted in a higher proportion of exposures allocated to Stage 2 as at 30 June 2024. These exposures remain performing and well secured resulting in a low likelihood of loss. The change did not result in a significant change in total provisioning levels as the Group previously held a lifetime loss provision for exposures which had not yet met the SICR thresholds at the reporting date but which were notionally considered to be in Stage 2 based on the forward looking economic outlook.

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Notes to the consolidated financial statements

For the financial year ended 30 June 2024

27.4.2 Impairment expense on financial assets from discontinued operation

	2024	2023
	$M	$M
Increase in collective provision for impairment1	10	11
Increase in specifc provision for impairment	1	2
Bad debts written of	3	5
Bad debts recovered	(1)	(1)
Total impairment expense (release) on fnancial assets	13	17

Impairment loss above includes $nil (2023: $1 million) of ECL on investment securities and reverse repurchase agreements.

Accounting policies

By providing loans and advances to customers, the Group is exposed to the risk of customer default. Default occurs when indicators exist that a customer is unable to meet contractual credit obligations to the Group in full, or if the exposure is 90 days past due. Provisions for impairment are recognised to address this risk.

Expected credit loss model

Financial assets that are subject to credit risk are assigned to one of three stages and could be reassigned based on changes in asset quality:

		Asset quality	Provision established to provide for ECL for:
Stage	1	Performing and/or newly originated assets.	A 12-month period.
Stage	2	Have experienced a SICR since origination.	The remaining term of the asset (lifetime ECL).
Stage	3	In default as they are either past due but not impaired or impaired assets.	Lifetime ECL.

The Group has developed the ECL model to estimate the adverse impact on future cash flows for each group of loans with similar credit risk characteristics.

ECL is recorded for all financial assets measured at amortised cost or FVOCI. ECL is calculated as the probability of default (PD) x loss given default (LGD) x exposure at default. The credit models are calibrated to reflect PD and LGD estimates based on historical observed experience, as well as reflecting the influence of unbiased forward-looking views of macroeconomic conditions, through macroeconomic variables that influence credit losses, for example the unemployment rate and changes in property prices.

The economic forecasts underpinning the PD and LGD estimates are reviewed on at least a six-monthly basis, taking into account expert judgement. As at 30 June 2024, management recognised ‘out of model’ overlays within the ECL where the existing inputs, assumptions and model techniques did not capture all the risk factors relevant to the lending portfolios. Further management overlays have been recognised with respect to specific risks in the Agribusiness portfolio.

Portfolio managed assets in stage 3 (mainly retail lending), will have a collective provision determined by the ECL model. The portfolios are split into pools with homogenous risk profiles and pool estimates of probability of default and loss given default. Some portfolio managed assets are individually covered by a specific provision.

Most relationship managed assets in stage 3 (mainly business lending) will require a specific provision. If it is determined that a collective provision provides a more appropriate estimate, a ratings-based approach is applied using estimates of probability of default and loss given default, at a customer level.

Loans with similar credit risk characteristics are grouped as follows:

Ά Retail loans, small business and non-credit risk-rated business loans are grouped by product.
Ά Credit risk-rated business loans are grouped by the industry types, being agribusiness, commercial property, development finance and property investment.

The Business Customer Support and Customer Care teams independently assess the carrying value of impaired loans and factors impacting recoverability. This analysis is reported monthly to the Bank Chief Credit Officer and the Bank Credit Risk Committee.

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Notes to the consolidated financial statements For the financial year ended 30 June 2024

Significant increase in credit risk

A SICR event occurs if a loan deteriorates on the master rating scale (MRS) by a defined number of notches since origination or by going into arrears. Loans with a higher MRS at origination (higher risk) require fewer notch movements to trigger a SICR event than loans with a lower MRS at origination (lower risk). From the perspective of arrears, 30 days past due is always considered stage 2. Exposures for which the MRS subsequently improves to below the SICR threshold will move back to stage 1. Loans restructured on commercial terms with a significant modification of their terms and conditions are considered a re-origination and will be moved into stage 1. The incorporation of forward-looking information (e.g. property prices, unemployment rate) within the ECL is designed to capture SICR events that are not yet reflected in observed data (e.g. arrears) at the exposure level.

Specific provisions

A specific provision for impairment is recognised where there is objective evidence of impairment and full recovery of principal and interest is considered doubtful. The present value of the expected future cash flows is compared to the carrying amounts of the loan. All factors that have a bearing on the expected future cash flows are considered, including the business prospects for the customer, the realisable value of collateral, the Group’s position relative to other claimants, the reliability of customer information and the likely cost and duration of the work-out process. These judgements can change as new information becomes available and work-out strategies evolve. The asset quality of an exposure carrying a specific provision is rated as stage 3.

The Group’s policy requires specific provisions to be reviewed at least quarterly, and more regularly as circumstances require. A forecast for specific provision movements is reviewed monthly at a Business Customer Support portfolio level.

Write-offs

A write-off is made when all practical recovery efforts have concluded and all or part of a financial asset is deemed irrecoverable or forgiven. Write-offs reduce the principal amount of a claim and are charged against previously established ECLs.

27.4.3 Expected credit loss model methodology, estimates and assumptions

Significant estimates, judgements and assumptions

The provision for impairment on financial assets is considered to be a significant accounting estimate and judgement as forecast macroeconomic conditions are a key factor in determining the ECL for loans and advances. The central economic forecast anticipates an increase in the unemployment rate to 4.7% at June 2025 and falling property values over the next two years. There remains a high risk of negative median house prices in the outlook given the tightening of monetary policy to date. For commercial property prices, the outlook remains poor, with falls anticipated given a high incentive environment eroding effective returns and continued low occupancy rates placing pressure on values. For rural, the outlook has improved with better weather conditions but volatile commodity prices and an end to the recent exceptional seasonal conditions contribute to downside risk for rural property prices. The ECL model calibration reflects the uncertain economic outlook.

Reported expected credit loss

The Group calculates the ECL by considering a distribution of economic outcomes around a central underlying scenario, with the distribution of outcomes reflecting the Group’s view of the likelihood of more adverse outcomes.

As the negative impact of an economic downturn on credit losses tends to be greater than the positive impact of an economic upturn, AASB 9 Financial Instruments (AASB 9) requires the ECL to be a probability weighted outcome based on a range of possible outcomes. Key assumptions underpinning the Group’s reported ECL of $200 million are presented in the table below. As an example of the downside allowance in the model, there is a 20% probability that house price falls will exceed 20% over FY25/FY26 while the weighted average fall is 6.6%.

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Notes to the consolidated financial statements

For the financial year ended 30 June 2024

	Model assumption %
	FY25 FY26 FY25/26
Property prices - residential - weighted average annual change	(3.6) (3.1) (6.6)
Property prices - commercial ofce - weighted average annual change	(5.6) (4.8) (10.1)
Property prices - rural - weighted average change	(0.1) (1.8) (1.9)
Unemployment rate1	4.7 4.5 n/a

Unemployment rate reflects the forecast rate as at June 2025 and June 2026. The PD is driven by combinations of variables relevant for each portfolio, such as unemployment and property prices. These combinations form an Economic Cycle indicator for which there is a distribution of outcomes. As such, a weighted unemployment rate is not a direct model input.

Downside sensitivity expected credit loss

The ECL calculation relies on multiple variables and is inherently non-linear and portfolio-dependent, signifying no single analysis can fully demonstrate the sensitivity of the ECL to fluctuations in macroeconomic variables. As a result of economic uncertainty and the sensitivity to key macroeconomic variables, significant adjustments to the ECL could occur in future periods. To provide an indication of the impact of changes in key macroeconomic variables, a sensitivity analysis is conducted on the following key macroeconomic drivers to which the ECL is sensitive:

Ά residential and commercial property prices;

Ά the unemployment rate; and

Ά a combination of simultaneous adverse movements in the above variables.

The table below indicates how each of the aforementioned drivers would impact the profit (loss) before tax with a corresponding impact on the ECL at reporting date.

the ECL at reporting date.
	Downside sensitivity
	Movement in variable Pre-tax impact Proft (loss) $M
Movement of variables in isolation
Property prices – residential	Decrease weighted average ~500 bps over 2 years from a fall of 6.6% to 11.6% (13)
Property prices – non-residential	Commercial ofce: Decrease weighted average ~500 bps over 2 years from a fall of 10.1% to 15.1% (10) Rural: Decrease weighted average ~500 bps over 2 years from a fall of 1.9% to 6.9%
Unemployment rate	Increase ~100 bps over 1 year to forecast rates of 5.7% (CY25) and 5.5% (CY26) (54)
Movement of variables in combination Property prices and unemployment rate all move in combination over the given timeframes	Adverse movements as above (80)

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Notes to the consolidated financial statements

For the financial year ended 30 June 2024

28. Provisions and employee benefit liabilities

Provisions are recognised for present obligations arising from past events where a payment (or other economic transfer) is probable to be necessary to settle the obligation and can be reliably estimated.

	Restated			Unused amounts
	June 20231	Additions	Amounts used	reversed	Other2	June 2024
	$M	$M	$M	$M	$M	$M
Annual leave and other employee benefts	241	269	(251)	(2)	(1)	256
Long service leave	118	12	(10)	-	-	120
Pay and leave entitlements review	3	-	(1)	-	-	2
Leaseholds	14	-	(4)	-	(2)	8
Divestments and restructuring	18	21	(23)	(4)	-	12
Compliance and remediation programs1	61	57	(41)	-	-	77
Other	9	8	(9)	-	-	8
Total	464	367	(339)	(6)	(3)	483
Current	355					374
Non-current	109					109
Total	464					483

Comparative information has been restated to reflect the Group’s adoption of AASB 17 from 1 July 2023.
Other movements in leaseholds relate to amounts reclassified to held for sale (refer to note 27.2).

Annual leave, long service leave and other employee benefits

The provision is determined based on expected payments.

Where the payments are expected to be more than one year in the future, these provisions include estimates such as employee service periods, employee turnover rates, future salary increases and mix of leave taken versus paid out. These future obligations are discounted using a market observable rate.

Leaseholds

Leasehold provisions recognised are management’s best estimate of the amount required to discharge the Group’s contractual make good obligations.

Divestments and restructuring

A divestment provision is recognised in relation to the costs associated with exiting the Australian Wealth business (SPSL). A restructuring provision is recognised in relation to changes in the Group’s operating model primarily for redundancy costs.

Compliance and remediation

The requirement for anticipated customer remediation has been assessed across the Group, Bank, Insurance (Australia) and Suncorp New Zealand businesses. Significant resources have been committed to a comprehensive program of work, to ensure that all issues are identified and addressed.

Key remediation programs have been identified and associated provisions estimated. As at 30 June 2024, the remaining provision includes cost estimates for the following:

Ά Estimated remediation for insurance customers relating to discount entitlements on premiums and claims adjustments.

Ά Coverage of legal costs for ongoing litigation.
Ά Matters arising from regulatory and supervisory reviews disclosed in note 29.2 “Contingent liabilities” where the potential impact can be reliably measured.

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Notes to the consolidated financial statements

For the financial year ended 30 June 2024

Accounting policies

A provision is a liability of uncertain timing or amount which is recognised in the consolidated SoFP when the Group has a present obligation (legal or constructive) as a result of a past event; it is probable that an outflow of economic benefits will be required to settle the obligation; and the amount can be reliably estimated.

If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, when appropriate, the risks specific to the liability. Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate.

Short-term employee benefits

Liabilities for short-term employee benefits are those expected to be settled wholly before 12 months after the end of the reporting period in which the employees render the related services. They are measured at the amounts expected to be paid when the liabilities are settled. Related on-costs such as superannuation, workers’ compensation and payroll tax are also included in the liability.

Long service leave and annual leave

The liabilities for long service leave and annual leave are those not expected to be settled wholly before 12 months after the end of the reporting period. They are measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using Australian corporate bond rates with terms to maturity that match, as closely as possible, the estimated future cash outflows. Related on-costs such as superannuation, workers’ compensation and payroll tax are also included in the liability.

Termination benefits

Termination benefits are recognised as an expense when the Group can no longer withdraw the offer of those benefits and when the Group recognises costs for a restructure. Termination benefits for voluntary redundancies are recognised as an expense if the Group can no longer withdraw the offer as an employee has accepted the offer or when a restriction on the Group’s ability to withdraw the offer takes effect.

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Notes to the consolidated financial statements

For the financial year ended 30 June 2024

29. Contingent assets and liabilities

29.1 Contingent assets

Contingent assets are not recognised, but are disclosed in the consolidated financial statements when inflows are probable. If inflows become virtually certain, an asset is recognised.

There are claims and possible claims made by the Group against external parties. Where considered appropriate, privileged legal advice has been obtained. The Group does not consider the outcome of any such claims known to exist at the date of this report, either individually or in aggregate, is likely to have a material effect on its operations or financial position. The Group is of the opinion that receivables are not required in respect of these matters, as the inflow of future economic benefits is probable but not virtually certain.

29.2 Contingent liabilities

Contingent liabilities are not recognised, but are disclosed in the consolidated financial statements, unless the possibility of settlement is remote, in which case no disclosure is made. If settlement becomes probable and the amount can be reliably estimated, a provision is recognised.

There are contingent liabilities facing the Group in respect of the matters below.

Regulatory and internal reviews

Reviews and enquiries from regulators may result in investigation and administrative costs, system changes, litigation, and regulatory enforcement action (and associated legal costs), compensation and/or remediation payments (including interest) or fines and penalties. The Group conducts its own internal reviews of its regulatory compliance, which it may disclose to the regulators in Australia and New Zealand, which may result in similar costs.

In recent periods, a number of regulators in Australia and New Zealand including ASIC, APRA, Australian Competition and Consumer Commission (ACCC), Australian Transaction Reports and Analysis Centre (AUSTRAC), the Australian Taxation Office (ATO), and the RBNZ and Financial Markets Authority (FMA) in New Zealand conducted reviews and made enquiries with the Group. There were a number of noncompliance instances identified and disclosed by the Group to various regulatory authorities including ASIC, APRA, AUSTRAC, the Office of the Australian Information Commissioner (OAIC), the Fair Work Ombudsman (FWO) and FMA.

In FY24, Suncorp-Metway Limited (SML) remained focused on uplifting the maturity of its Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) systems and controls. To ensure a strategic and holistic approach, management established a Financial Crime Compliance Program of Action (FCCPoA). The FCCPoA incorporated the actions arising from AUSTRAC’s 2022 AML/CTF Compliance Assessment Report findings in relation to SML’s AML Program as well as findings and recommendations from internal assurance and audit work. Management regularly reported to AUSTRAC on progress of the FCCPoA.

As previously disclosed, FMA initiated proceedings against AA Insurance Limited (AAI NZ) relating to multi-policy discount, New Zealand Automobile Association member discount, and no claims bonus (NCB) customer remediation activities, seeking a declaration of contravention of certain sections of the Financial Markets Conduct Act 2013 and a pecuniary penalty. As of 30 June 2024, the scope and quantum of any penalty remain undetermined and subject to a Court ruling. A provision has been made for the potential penalty based on the best estimate.

An assessment of the likely cost to the Group of the above matters has been made on a case-by-case basis but cannot always be reliably estimated. To the extent that the potential impact can be reliably estimated, the amount has been provisioned.

Customer remediation and complaints

The Group is currently undertaking a number of programs of work in both Australia and New Zealand to resolve prior issues that have impacted customers. Contingent liabilities may exist in respect of actual or potential claims, compensation payments and/or remediation payments (including interest) identified as part of existing programs of work or as part of future programs responding to regulatory or internal reviews, which have not been provided for.

The Australian Financial Complaints Authority (AFCA) has the power to award compensation within financial limits prescribed by its rules on complaints raised by customers and investigate matters they consider may be ‘systemic’. The Group is working through individual cases that have been referred to AFCA as well as any systemic matters opened by AFCA.

An assessment of the likely cost to the Group of reviews and customer complaints has been made on a case-by-case basis but cannot always be reliably estimated. To the extent that the potential impact can be reliably estimated, the amount has been provisioned.

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Notes to the consolidated financial statements

For the financial year ended 30 June 2024

Royal Commission

As disclosed previously, the Financial Services Royal Commission recommended establishing a Compensation Scheme of Last Resort (CSLR) to provide compensation to victims of financial misconduct who have won their cases through AFCA but have not been paid due to the insolvency of the involved financial institution.

On 22 June 2023 the Australian Parliament passed legislation establishing the CSLR in Australia. As one of the ten largest financial APRAregulated banking and insurance organisations in the 2021-22 income year, the Group was required to pay a one-off levy to finance past unpaid Determinations of unrelated insolvent institutions. The one-off levy was provided for in the financial year ended 30 June 2023 and, following ASIC’s issue of the invoice in May 2024, was fully paid by end of July 2024.

In addition to the one-off levy, Suncorp Bank is within the financial subsectors required to pay annual levies to the CSLR from July 2025. Following the sale of the Suncorp Bank completed on 31 July 2024, the remainder of the Group is only expected to be exposed to special levies if the CSLR or relevant Minister determines that the Group should contribute at a later time. Potential outflows remain uncertain.

Litigation

As previously disclosed, a class action was filed against AAI Limited and MTAI Pty Ltd on behalf of persons who purchased add-on insurance products sold with the purchase or lease of motor vehicles at car dealerships between 1 May 2006 and 30 June 2018. The Group is defending this matter. The Group has made provision for legal, investigation and other defence costs. It is currently not possible to determine the ultimate financial impact of this matter, if any.

As previously disclosed, various business interruption wordings have been examined through litigation including two significant industry test cases following the onset of the COVID-19 pandemic. The Full Federal Court broadly found in favour of the insurers concluding that, in most instances, the indemnity clauses did not trigger. There are some ongoing business interruption disputes with AAI customers at AFCA and AFCA have indicated that they will apply the test case principles. While settled in the main, there are some class actions with other industry participants, the outcome of which may have broader industry application and impact the Group’s future exposure.

The potential impact of these matters is uncertain and has been considered in the recognition of claims provisions and risk margins in the General Insurance contract liabilities as set out in note 8.1.1.

There are other outstanding court proceedings, potential fines, enquiries, industry reviews, claims and possible claims against the Group, the aggregate amount of which cannot be readily quantified. Where considered appropriate, privileged legal advice has been obtained. The Group does not consider the outcome of any such claims known to exist at the date of this report, either individually or in aggregate, likely to have a material effect on its operations or financial position.

An assessment of the likely cost to the Group of these matters has been made on a case-by-case basis but cannot always be reliably estimated. To the extent that the potential impact can be reliably estimated, the amount has been provisioned.

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Notes to the consolidated financial statements For the financial year ended 30 June 2024

29.2 Contingent liabilities [continued]

Sale of businesses

As part of the sale of SLSL during the financial year ended 30 June 2019, the Group provided warranties and indemnities to SLSL and TAL Daiichi Life Australia Pty Ltd (TAL). Warranties expired on 28 February 2024. Potential outflows relating to indemnities remain uncertain.

As part of the sale of Capital S.M.A.R.T and ACM Parts during the financial year ended 30 June 2020, the Group provided warranties in the respective Share Sale and Purchase Agreements entered into with AMA Group Limited (AMA). As at 30 June 2024, no claims are outstanding and the period within which claims may be commenced has expired, except for tax warranties. The period to commence tax warranty claims expires in October 2026. Any potential outflows remain uncertain.

As part of the sale of Resilium during the financial year ended 30 June 2019, the Group provided certain tax warranties in the Sale and Purchase Agreement entered into with the Resilium management team. These warranties expired on 31 May 2024.

As part of the sale of SPSL to LGIAsuper during the financial year ended 30 June 2022, Suncorp Life Holdings Limited provided warranties and indemnities to LGIA Trustee, as trustee of LGIAsuper. These included warranties, indemnities, and remediation obligations regarding the provision of services and products in accordance with the terms and conditions of the contractual arrangements. Any outflows relating to the warranties and indemnities remain uncertain.

As part of the sale of Suncorp’s 50% stake in RACT Insurance to Royal Automobile Club of Tasmania during the financial year ended 30 June 2022, the Group provided certain warranties relating to title and capacity and a tax indemnity as part of the Share Purchase Agreement. Any potential outflows relating to the indemnity remain uncertain.

AA Finance, a 50 : 50 joint venture between Suncorp and the New Zealand Automobile Association, sold its motor vehicle loan book to UDC Finance in October 2023. As part of the sale, AA Finance provided certain warranties in relation to the loan book in the Sale and Purchase Agreement with both Suncorp and the New Zealand Automobile Association acting as a guarantor. Any potential outflow in relation to the warranties remain uncertain.

As disclosed in the Subsequent events, the sale of the Suncorp Bank to ANZ was completed on 31 July 2024. As part of the sale, the Group provided warranties and indemnities to ANZ for certain pre-Completion matters including breaches of AML and CTF laws, certain litigation and regulatory matters and other market standard warranties and indemnities. The Group also provided warranties and indemnities concerning the transitional services to be provided to ANZ under the TSA. Any potential outflows in relation to the warranties and indemnities remain uncertain.

Other

Under the terms of its contracts with New Zealand life insurance advisers, the Group could potentially acquire the entitlement of individual advisers to future income streams from life insurance renewal commission for business in-force as at 16 April 2021, should the advisers themselves be unable to find an approved buyer within six months of the date that the agreement ends. For in-force business written since 16 April 2021, the entitlement of individual advisers to future income streams from renewal commission if an approved buyer is not found within six months of the date that the agreement ends, is ceded to the Company at no cost. The liability for future renewal commission is contained in the Group’s policy liabilities, and therefore these potential transactions do not result in any change to the Group’s net assets or profit or loss. In practice, these transactions are not frequent, and management do not consider the consequent acceleration of the timing of underlying cash flows to be material.

Certain subsidiaries act as trustee for various trusts. In this capacity, the subsidiaries are liable for the debts of the trusts and are entitled to be indemnified out of the trust assets for all liabilities incurred on behalf of the trusts.

Some companies in the Group, apart from the Company, also provide financial guarantees to external parties and may be exposed to contingent liabilities.

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Notes to the consolidated financial statements

For the financial year ended 30 June 2024

30. Auditors’ remuneration

30. Auditors’ remuneration
	2024 2023 2024 2023
	KPMG Australia Overseas KPMG frms
	$000 $000 $000 $000
Audit and review services Audit and review of fnancial reports	4,428 3,544 1,323 1,273
	4,428 3,544 1,323 1,273
Assurance services Regulatory assurance services Other assurance services1	1,448 1,598 401 407 845 1,056 8 7
	2,293 2,654 409 414
Other services Other non-audit services2	259 115 - -
Total auditors' remuneration	6,980 6,313 1,732 1,687

Other assurance services are assurance services other than Regulatory assurance services and primarily relate to services for emissions reporting, Investor Pack review, and external peer reviews.
Other non-audit services include advisory services for loan capital issued by the Group and agreed upon procedure engagements.

31. Subsequent events

The sale of Suncorp Bank to ANZ was completed subsequent to end of financial year on 31 July 2024. The details of the financial impact of the transaction are included in note 27. Completion is a non-adjusting subsequent event.

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Consolidated entity disclosure statement

As at 30 June 2024

		Place	Equity
		incorporated/	holding	Tax
Entity name	Entity type	formed	%	residency5
Suncorp Group Limited (the Company)	Body corporate	Australia	100	Australia
Suncorp Insurance Holdings Limited	Body corporate	Australia	100	Australia
AAI Limited	Body corporate	Australia	100	Australia
Australian Associated Motor Insurers Pty Limited	Body corporate	Australia	100	Australia
Australian Pensioners Insurance Agency Pty Limited	Body corporate	Australia	100	Australia
GIO Australia Pty Limited	Body corporate	Australia	100	Australia
GIO General Pty Limited	Body corporate	Australia	100	Australia
GIO Insurance Investment Holdings A Pty Limited	Body corporate	Australia	100	Australia
MTA Insurance Pty Ltd	Body corporate	Australia	100	Australia
Shannons Auctions Pty Limited	Body corporate	Australia	100	Australia
Shannons Pty Limited	Body corporate	Australia	100	Australia
Suncorp Metway Insurance Pty Limited	Body corporate	Australia	100	Australia
Suncorp Partner Holdings Pty Ltd	Body corporate	Australia	100	Australia
Platform Ventures Pty Ltd	Body corporate	Australia	100	Australia
Platform CoVentures Pty Ltd	Body corporate	Australia	100	Australia
Terri Scheer Insurance Pty Ltd	Body corporate	Australia	100	Australia
VSPL Pty Ltd	Body corporate	Australia	100	Australia
New Zealand Surety Corporation Limited	Body corporate	New Zealand	100	New Zealand
Suncorp Insurance Services Limited	Body corporate	Australia	100	Australia
Suncorp Legal Pty Ltd	Body corporate	Australia	100	Australia
Suncorp Insurance Ventures Pty Ltd	Body corporate	Australia	100	Australia
Home Repair.net.au Pty Ltd	Body corporate	Australia	100	Australia
Repair Methods Australia Pty Ltd	Body corporate	Australia	100	Australia
Suncorp Insurance (General Overseas) Pty Ltd	Body corporate	Australia	100	Australia
Suncorp Group Holdings (NZ) Limited	Body corporate	New Zealand	100	New Zealand
Suncorp NZ Employees Limited	Body corporate	New Zealand	100	New Zealand
Suncorp New Zealand Services Limited	Body corporate	New Zealand	100	New Zealand
Vero Insurance New Zealand Limited2	Body corporate	New Zealand	100	New Zealand
Vero Liability Insurance Limited	Body corporate	New Zealand	100	New Zealand
AA Insurance Limited	Body corporate	New Zealand	68	New Zealand
VL Limited	Body corporate	New Zealand	100	New Zealand
SBGH Limited3	Body corporate	Australia	100	Australia
Suncorp-Metway Limited3	Body corporate	Australia	100	Australia
APOLLO Series 2008-1R Trust3	Trust	Australia	N/A	Australia
APOLLO Series 2015-1 Trust3	Trust	Australia	N/A	Australia
APOLLO Series 2017-1 Trust3	Trust	Australia	N/A	Australia
APOLLO Series 2017-2 Trust3	Trust	Australia	N/A	Australia
APOLLO Series 2018-1 Trust3	Trust	Australia	N/A	Australia
APOLLO Series 2022-1 Trust3	Trust	Australia	N/A	Australia

150 Annual Report 2023-24

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Consolidated entity disclosure statement

As at 30 June 2024

		Place	Equity
		incorporated/	holding	Tax
Entity name	Entity type	formed	%	residency5
APOLLO Series 2023-1 Trust3	Trust	Australia	N/A	Australia
APOLLO Series 2024-1 Trust3	Trust	Australia	N/A	Australia
APOLLO Warehouse Trust No. 23	Trust	Australia	N/A	Australia
Suncorp Covered Bond Trust3	Trust	Australia	N/A	Australia
National Finance Network Pty Limited4	Body corporate	Australia	100	Australia
QIDC Pty Limited4	Body corporate	Australia	100	Australia
Suncorp Finance Pty Limited4	Body corporate	Australia	100	Australia
SPDEF #2 Pty Ltd1,4	Body corporate	Australia	100	Australia
Suncorp Property Development Equity Fund #2 Unit Trust4	Trust	Australia	N/A	Australia
SME Management Pty Limited3	Body corporate	Australia	100	Australia
Suncorp Metway Advances Corporation Pty Ltd3	Body corporate	Australia	100	Australia
SSSL Pty Ltd4	Body corporate	Australia	100	Australia
Suncorp Life Holdings Limited	Body corporate	Australia	100	Australia
Guardian Financial Planning Pty Limited	Body corporate	Australia	100	Australia
GuardianFP Pty Limited	Body corporate	Australia	100	Australia
Suncorp Financial Services Pty Ltd	Body corporate	Australia	100	Australia
Suncorp Funds Pty Ltd	Body corporate	Australia	100	Australia
Suncorp Wealth Services Pty Ltd	Body corporate	Australia	100	Australia
Suncorp Insurance (Life Overseas) Pty Ltd	Body corporate	Australia	100	Australia
Suncorp Group Services NZ Limited	Body corporate	New Zealand	100	New Zealand
Suncorp Group New Zealand Limited	Body corporate	New Zealand	100	New Zealand
Asteron Life Limited	Body corporate	New Zealand	100	New Zealand
Suncorp Group Employee Incentive Plan Trust	Trust	Australia	N/A	Australia
Suncorp Staf Pty Ltd	Body corporate	Australia	100	Australia
SuncorpCorporate Services PtyLtd	Bodycorporate	Australia	100	Australia

Trustee of Suncorp Property Development Equity Fund #2 Unit Trust which is consolidated in the consolidated financial statements.
Participant in the AA Insurance Limited joint venture which is consolidated in the consolidated financial statements.
Entity was divested as part of the Suncorp Bank sale on completion date (refer to note 27 in the consolidated financial statements).
Entity was transferred from Suncorp Bank to Suncorp Group Limited in accordance with the Restructure Agreement (refer to Overview section in the consolidated financial statements).
Entities disclosed with a tax residency of “Australia” are Australian residents at reporting date within the meaning of the Income Tax Assessment Act 1997. For foreign resident entities (within the meaning of the Income Tax Assessment Act 1997 ), the respective foreign jurisdiction is indicated in which the entity was, at reporting date, a resident for the purposes of the law of the foreign jurisdiction relating to foreign income tax.

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Consolidated entity disclosure statement

As at 30 June 2024

Key assumptions and judgements

Determination of Tax Residency

Subsection 295(3A) of the Corporations Act 2001 requires that the tax residency of each entity which is included in the ‘Consolidated entity disclosure statement’ be disclosed. In the context of an entity which was an Australian resident, “Australian resident” has the meaning provided in the Income Tax Assessment Act 1997 . The determination of tax residency involves judgement as the determination of tax residency is highly fact dependent and there are currently several different interpretations that could be adopted, and which could give rise to a different conclusion on residency.

In determining residency, the consolidated entity has applied the following interpretations:

Ά Australian tax residency

The consolidated entity has applied current legislation and judicial precedent, including having regard to the Commissioner of Taxation’s public guidance in Taxation Ruling TR 2018/5 .

Ά Foreign tax residency

The consolidated entity has applied current legislation and, where available, judicial precedent in the determination of foreign tax residency.

Trusts

Australian tax law does not contain specific residency tests for trusts. Generally, trusts are taxed on a flow-through basis so there is no need for a general residence test. There are some provisions which treat trusts as residents for certain purposes, but this does not mean the trust itself is an entity that is subject to tax.

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SHAREHOLDER INFORMATION

Directors’ Declaration

The directors of Suncorp Group Limited (the Company ) declare that in their opinion:
- a. The consolidated financial statements and notes, and the Remuneration Report in the Directors’ Report, set out on pages 54 to 149, are in accordance with the Corporations Act 2001 (Corporations Act), including:
  - i. giving a true and fair view of the Suncorp Group’s financial position as at 30 June 2024 and of its performance for the financial year ended on that date; and
  - ii. complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001.
- b. The consolidated entity disclosure statement required by section 295(3A) of the Corporations Act and included on pages 150 to 152 of the Annual Report is true and correct; and
- c. There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
The directors have been given the declarations required by section 295A of the Corporations Act from the Group Chief Executive Officer and Managing Director and the Acting Group Chief Financial Officer for the financial year ended 30 June 2024.
The directors draw attention to note 2.1 to the consolidated financial statements, which includes a statement of compliance with International Financial Reporting Standards.
As the Group Chief Financial Officer is unavailable to provide this declaration for the FY24 full-year results having undergone a recent minor surgical procedure, it has been provided by the Acting Group Chief Financial Officer as delegate and who, in the Group Chief Financial Officer’s absence, is performing the chief financial officer function for the purpose of section 295A of the Corporations Act.

Signed in accordance with a resolution of the directors:

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Christine McLoughlin, AM

Chairman

19 August 2024

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Steve Johnston

Group Chief Executive Officer and Managing Director 19 August 2024

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Independent Auditor’s Report to the shareholders of Suncorp Group Limited

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Independent Auditor’s Report

To the shareholders of Suncorp Group Limited

`Report on the audit of the Financial Report`

`Opinion`

We have audited the Financial Report of The Financial Report comprises: Suncorp Group Limited (the Company).  Consolidated statement of financial position as at 30 June 2024

In our opinion, the accompanying Financial Report of the Company gives a true and  Consolidated statement of comprehensive income, fair view, including of the Group ’s Consolidated statement of changes in equity, and financial position as at 30 June 2024 and Consolidated statement of cash flows for the year of its financial performance for the year then ended then ended, in accordance with the Corporations Act 2001, in compliance with  Consolidated entity disclosure statement and Australian Accounting Standards and the accompanying basis of preparation as at 30 June 2024 Corporations Regulations 2001 .

Notes, including material accounting policies
Directors’ Declaration.

The Group consists of the Company and the entities it controlled at the year end or from time to time during the financial year.

`Basis for opinion`

We conducted our audit in accordance with Australian Auditing Standards . We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report.

We are independent of the Group in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in accordance with these requirements.

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`Key Audit Matters`

The Key Audit Matters we identified are: Key Audit Matters are those matters that, in our  Initial adoption of AASB 17 Insurance professional judgement, were of most significance in our audit of the Financial Report of the current period.
Contracts ; These matters were addressed in the context of our
Valuation of Insurance Contract audit of the Financial Report as a whole, and in forming
Liabilities and Reinsurance Contract our opinion thereon, and we do not provide a separate
Assets; opinion on these matters.

The Key Audit Matters we identified are:

Valuation of goodwill;
Assets held for sale;
Provisions for impairment on financial assets – loans and advances and
Information Technology (IT) systems and controls

`Initial adoption of AASB 17` `Insurance Contracts`

Refer to Note 2.3 to the Financial Report

The key audit matter

How the matter was addressed in our audit

On 1 July 2023, the Group transitioned to Our procedures included: reporting under the new accounting standard AASB 17 Insurance Contracts (“AASB 17”) • consideration of the Group’s new accounting which replaced AASB 1023 General Insurance policies and practices against the Contracts and AASB 1038 Life Insurance requirements of the accounting standard and Contracts our understanding of the business and industry practice;

The initial adoption of AASB 17 is a key audit matter due to the inherent complexity of adopting this standard for the first time. The standard introduces new approaches for the accounting for insurance and reinsurance contracts, increasing the need for interpretation, judgement and audit effort. We focused on:

obtaining an understanding of the Group’s new processes used to measure the insurance contract liabilities and retained earnings adjustment;
assessing the transition approach and checking that the transition adjustments and restatements are accurately reflected in the financial statements;
the Group’s new accounting processes, policies and controls in response to the AASB 17 requirements;
policies and controls in response to the • working together with our actuarial specialist, AASB 17 requirements; we evaluated the Group’s measurement of the Liability for Remaining Coverage (LRC) and
• the Group’s transition approach applied Liability for Incurred Claims (LIC) as at the retrospectively to the insurance and transition date by checking if the present value

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Independent Auditor’s Report to the shareholders of Suncorp Group Limited

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reinsurance contracts as at 1 July 2022;

changes made to the measurement of liabilities and the impact on revenue recognition and overall financial statement presentation;

for future cashflows, risk adjustment, contractual service margin (where applicable) and loss component have been measured in compliance with the requirements of AASB 17; and

assessing the disclosures in the financial
• the judgement used for relevant report using our understanding obtained from
assumptions used in the measurement of our testing and against the requirements of
insurance contract liabilities and onerous the accounting standard and industry practice.
contracts; and
the adequacy and completeness of disclosures related to the adoption of AASB 17.
We involved our senior audit team members in assessing this key audit matter, along with actuarial specialists.

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Valuation of Insurance Contract Liabilities and Reinsurance Contract Assets
(Insurance Contract Liabilities AUD 12,362 million, Reinsurance Contract Assets AUD 1,158
million)

Refer to Note 8 to the Financial Report

The key audit matter The valuation of insurance contract liabilities and reinsurance contract assets is a key audit matter. It involves significant judgement to be applied by the Group and by us given the high degree of uncertainty inherent in challenging the estimation of the liability of incurred claims (LIC) and asset for incurred claims (AIC), comprising of the present value of future cashflows related to past services provided and a risk adjustment. In particular, we focused on the Group’s:

How the matter was addressed in our audit Working with our actuarial specialists, our procedures included:

 assessing the appropriateness of the Group’s selection of actuarial methods against the requirements of the accounting standards, actuarial standards, the methods applied in the prior periods and by industry.

testing key IT controls in relation to the claim payments. This included relevant
In particular, we focused on the Group’s: associated IT general and application  estimation of future payments for controls, such as system enforced claims incurred at the reporting date segregation of duties. We involved our IT which have been reported, but also specialists in testing the IT controls. those claims which have not yet been  testing key actuarial controls including the reported to the Group as it may take reconciliations of key data related to many years to notify a claim, and the claims payments and case estimates, and ultimate cost may be influenced by the Group’s oversight of the liability for factors unknown at 30 June 2024 or incurred claims. outside of the control of the Group.  testing a sample of claim payments and
• application of historical experience of case estimates to underlying third party

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claims development to determine
current estimates, including the
variability between the original
estimation and the ultimate settlement
of claims where there is a long time
delay between the claim being incurred
and the ultimate settlement such as
Compulsory Third Party and Worker’s
Compensation. This includes assessing
key assumptions for significant classes
of business which are forward-looking
and tend to be prone to greater risk for
potential bias, such assumptions
include discount rate, claims handling
expense ratio, economic and
superimposed inflation applied and risk
adjustment.

valuation of the assets for incurred
claims within reinsurance contract
assets involves a high degree of
judgement due to the implicit
dependence on the estimate of gross
outstanding claims and the complexity
of significant contracts such as
coverage for natural hazards and
catastrophes.

the identification and estimation of
those classes of business that are
classified as onerous
As the auditor, challenging the Group’s
valuation process requires deep understanding
of the industry and specialist actuarial
knowledge.

evidence such as invoices, expert reports,
legal advice and bank statements. This
was performed to test the accuracy of the
claims information used within the
estimation of the liability for incurred
claims.

performing our own re-estimation of a
sample of significant classes of business
liability for incurred claims to compare and
challenge the Group’s liability for incurred
claims using industry accepted actuarial
methods. To do this, we used the
information on the Group’s claims
payments and case estimation data,
understood the facts and circumstances
of the claims through our sample testing
and developed our own estimation of
expected future payments on the liability
for incurred claims. Exercising our
judgement, our procedures included using
our understanding of relevant class of
business and the macroeconomic
environment and comparing data and
assumptions used by the Group in
estimating expected future payments to
comparable industry data.

for selected significant classes of
business, and consideration of claims
relating to natural hazard events, we have
performed an assessment of the:
—accuracy of previous estimates including
comparison of the prior year liabilities
against current year actual experience of
costs and claims; and
—key assumptions used such as discount
rate, claims handling expense ratio,
economic, superimposed inflation applied
and risk adjustment, by comparing to
Suncorp internal data and relevant
industry data.

considering evidence of management
bias, we evaluated the key assumptions
and selection of methods against the
Group’s historical experience and industry
trends.

for reinsurance recoveries, we checked a
sample of the underlying claims data to
the terms of the reinsurance contract

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Independent Auditor’s Report to the shareholders of Suncorp Group Limited

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coverage for consistency in recognising the amount in the year. In addition, we incorporated the assets for incurred claims into our procedures performed in respect of the gross liability for incurred claims described above.

Assessing the onerous contract assessment and testing the loss component applied in the liability for remaining coverage, including evaluating the significant assumptions against relevant supporting information.
assessing the appropriateness of the related disclosures in the financial report using our understanding obtained from procedures described above and the requirements of the accounting standards.

`Valuation of goodwill (AUD 4,459 million)`

Refer to Note 21 to the Financial Report

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The key audit matter How the matter was addressed in our audit
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A key audit matter for us was the Group’s
annual testing of goodwill for impairment, given
the high level of judgement required by us in
assessing the significant forward-looking
assumptions the Group applied in their
valuation models for each Cash Generating Unit
(CGU) using a value-in-use method, including:

forecast cash flows, growth rates and
terminal growth rates. The current and
expected uncertain economic
conditions increase the inherent
uncertainty of the forecasts, the
probability of a wider range of possible
outcomes and the possibility of
goodwill being impaired.

discount rates. These are complicated
in nature and vary according to the
conditions and environment the
specific CGU is subject to from time to
time. The Group engaged an external
expert to assist in determining the
discount rates. The Group uses

Working with our valuation specialists, our
procedures included:

considering the appropriateness of the
valuation methods applied by the Group to
each CGU to perform the annual test of
goodwill for impairment against the
requirements of the accounting standards.

analysing the reorganised segments and
the Group’s internal reporting to assess
the Group’s monitoring and management
of activities, and the consistency of the
allocation of goodwill to CGUs

assessing the accuracy of previous Group
forecasts to inform our evaluation of
forecasts incorporated in the models.

checking the consistency of the growth
rates to the Group’s stated plan and
strategy, past performance of the Group,
and our experience regarding the
feasibility of these in the industry and/or
economic environment in which they

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complex models to perform their
annual testing of goodwill for
impairment. The models are largely
manually developed and use a range of
internal and external sources as inputs
to the assumptions. Complex
modelling, particularly those containing
highly judgemental allocations of
corporate assets and costs to CGUs,
using forward-looking assumptions
tend to be prone to greater risk for
potential bias, error and inconsistent
application. These conditions
necessitate additional scrutiny by us, in
particular to address the objectivity of
sources used for assumptions, and
their consistent application.
In addition to the above, during the year the
Group reorganised its segments, based on the
management and monitoring of the business.
This restructure necessitated our consideration
of the Group’s reallocation of goodwill to their
respective CGUs.
The recoverable amount of the Banking CGU
was determined based on fair value less cost to
sell. We involved valuation specialists to
supplement our senior audit team members in
assessing this key audit matter.

operate.

challenging the Group’s forecast cash
flow and growth assumptions in light of
the economic uncertainties. We
compared the forecast cash flows
contained in the value in use models and
compared the key events to the Board
approved plan. We compared the forecast
growth rates and terminal growth rates to
published studies of industry trends and
expectations, and considered differences
for the Group’s operations. We used our
knowledge of the Group, their past
performance, business and customers,
and our industry experience.

independently developing a discount rate
range considered comparable to the
CGUs using publicly available market data
for comparable entities, adjusted by risk
factors specific to the CGUs, Group and
the industry it operates in.

assessing the sensitivity of the models by
varying key assumptions, such as forecast
growth rates, terminal growth rates and
discount rates within a reasonably
possible range. We did this to identify
those CGUs at higher risk of impairment
and those assumptions at higher risk of
bias or inconsistency in application and to
focus our further procedures.

assessing the scope, competency and
objectivity of the Group’s external expert.

assessing the recoverable value of the
Bank CGU recorded by the Group against
the terms and conditions of the signed
Share Sale and Purchase Agreement.

assessing the disclosures in the financial
report using our understanding of the
issue obtained from our testing and
against the requirements of the
accounting standards.

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Independent Auditor’s Report to the shareholders of Suncorp Group Limited

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`Assets held for sale`

Refer to the Note 27 to the Financial Report The key audit matter How the matter was addressed in our audit On 18 July 2022, the Group signed a share sale Our procedures included: and purchase agreement with Australia and • inspecting the underlying share sale New Zealand Banking Group Limited (ANZ) to agreement (SPA) to develop an understanding sell its banking business, Suncorp Metwayof the terms and conditions of the sale. Limited (“SML”). The sale transaction was completed subsequent to balance date, on 31 • assessing whether the requirements of July 2024. At reporting date, SML was accounting standards have been met regarding classified as held for sale and a discontinued classification and presentation of SML as held operation in accordance with AASB 5 Assets of sale and a discontinued operation. held for sale . • Assessing on a sample basis, whether the This is considered to be a key audit matter due assets and liabilities were measured at the the judgements made by the Group in: lower of the carrying value and fair value less costs to sell.  in determining whether SML meets the criteria to be classified as held for • Assessing the adequacy and appropriateness sale in line with the accounting of related disclosures against the standards; requirements of accounting standards.  determining the assets and liabilities were measured at the lower of the carrying value and fair value less costs to sell.

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`Provision for impairment on financial assets – loans and advances (AUD 214 million)`

Refer to Note 27.4.1 to the Financial Report, as Provision for impairment on financial assets now forms part of the Sale of Suncorp Bank note

The key audit matter How the matter was addressed in our audit Expected credit loss (ECL) provisions for loans Our procedures included: and advances held at amortised cost are a key Testing key controls relating to: audit matter due to the significance of the balance of loans and advances held at  reconciliation of relevant data used in the amortised cost to the financial statements and ECL models and specific provisioning the inherent complexity of the Group’s ECL assessments to gross balances recorded models. within the general ledger as well as source systems; AASB 9 Financial Instruments (AASB 9) requires significant judgement to estimate  the onboarding of new lending facilities, ECLs. The ECL provision is a forward-looking including quality checks on key loan probability weighted estimate reflecting a range information (such as borrower type and of assumptions affecting the performance of security details) used in the measurement loans and advances and the specific

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of ECL provisions;

circumstances of those individual exposures. The Group’s model to estimate the ECL includes critical assumptions to determine when a significant increase in credit risk (SICR) has occurred, estimating forward looking macro-economic assumptions and judgemental post-model adjustments.

assessment of the credit quality of business lending counterparties;
systems recording retail loans lending arrears;
the Group’s monitoring mechanisms to identify loans experiencing signs of stress, including a Significant Increase in Credit Risk (SICR) or default event;

At balance date, economic uncertainty identify loans experiencing signs of remained heightened. Given the range of stress, including a Significant Increase in potential economic outcomes and impacts, Credit Risk (SICR) or default event; significant judgement continues to be exercised  the Group’s ECL model governance, by the Group in developing forward-looking model performance monitoring and model macro-economic scenarios to estimate future validation processes; and credit losses. The Group calculates the ECL utilising a distribution model which estimates  the Group’s assessment and approval of economic outcomes around a weighted the ECL provisions estimate, application underlying forward-looking macro-economic of forward-looking macroeconomic scenario. assumptions, and post-model adjustments. Post-model adjustments to the ECL results are also made by the Group to address known ECL In addition to controls testing, our procedures model limitations or emerging trends in the loan included:

the Group’s ECL model governance, model performance monitoring and model validation processes; and

Post-model adjustments to the ECL results are also made by the Group to address known ECL model limitations or emerging trends in the loan portfolios.

testing the accuracy of a sample of critical
For credit-impaired loans, it is the Group’s data elements used within ECL models, policy to identify specific ECLs (specific such as checking year end loan balances, provisions) based on the Group’s judgement. repayment history and risk ratings to This focuses on estimating when an source systems. impairment event has occurred and the present  working with our credit risk specialists:
value of expected future cash flows, which have high estimation uncertainty. This is due to — we reperformed the key components of the forecast cash flows being dependent on the Group’s model validation processes future and uncertain events, for example, the over key ECL models; and timing and proceeds from the future sale of collateral, which are inherently challenging to — we assessed the accuracy of the Group’s predict. ECL model estimates by re-performing the calculation for a sample of ECL models
These features resulted in significant audit using the Group’s provisioning
effort to address the risks of loan recoverability methodology and relevant data used
and the determination of related ECLs, hence within the ECL models. We compared our
considering this to be a key audit matter. results to the amount recorded by the Group.
working with our economic specialists, we challenged the assumptions made in the Group’s central case forward-looking macro-economic scenario incorporated into the ECL models. Examples include comparing the Group’s forecasts with those of KPMG’s economist, and with published data provided by reputable property data and analytics providers.

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Independent Auditor’s Report to the shareholders of Suncorp Group Limited

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	assessing the post-model adjustments
	applied by the Group to the ECL
	provisions. We challenged the basis for
	the adjustments and compared the loan
	portfolios’ underlying performance and
	characteristics to current market
	conditions, emerging risks and trends,
	using our knowledge of the industry .
	re-performing credit assessments of a
	sample of loans controlled by the Group’s
	specialist workout and recovery team
	assessed as of higher risk or impaired
	(specific provisions). We challenged the
	Group’s risk grading of the loan, staging
	and SICR treatment and assessment of
	loan recoverability.
	For a sample of loans we took into
	consideration the Group’s qualitative and
	quantitative risk rating criteria and
	compared the adopted risk ratings,
	staging and SICR status of these accounts
	with our expectation.
	as part of assessing recoverability
	including for individually provisioned
	exposures, we evaluated the valuation
	and timing of collateral realisation and
	compared data and assumptions used by
	the Group to the Group’s externally
	sourced evidence for valuations of
	collateral held. We compared inputs
	utilised in the valuation reports relied upon
	by the Group with more recent evidence
	such as median property prices published
	by reputable property data and analytics
	providers and recent valuations of
	comparable properties completed by
	certified practicing valuers.
	assessing the appropriateness of the
	Group’s disclosures using our
	understanding obtained from our testing
	and against the requirements of the
	accounting standards.

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`Information Technology (IT) systems and controls`

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Refer to the basis of preparation in Note 2 to the Financial Report
The key audit matter How the matter was addressed in our audit
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The Group’s businesses utilise a number of
interdependent IT systems to process and
record a high volume of financial transactions.
Controls for access and changes to relevant IT
systems are critical to the recording of financial
information and the preparation of a financial
report which provides a true and fair view of the
Group’s financial position and performance.
The IT systems and controls, as they impact the
financial recording and reporting of transactions,
is a key audit matter and our audit approach
could significantly differ depending on the
effective operation of the Group’s IT controls.
KPMG IT specialists were used throughout the
engagement as a core part of our audit team.

Working with our IT specialists, we obtained an
understanding of the Group’s IT environment and
risk assessment processes, for how the Group
uses IT as part of financial reporting. We evaluated
the risks to the Group’s current year financial
statements resulting from, among other things,
unauthorised access to financial reporting
systems, including IT applications, databases, and
operating systems. We tested key systems,
automated controls and the control environments
underlying the relevant financial preparation
processes.
Our procedures included:

testing controls relevant to the
governance of access rights given to
employees, contractors and privileged
users by checking them to approved
records, and inspecting the reports
regarding the granting and removal of
access rights. We also tested controls
related to monitoring of access rights.

testing controls used to request,
document, develop, test and authorise
changes to the functionality and
configuration of core systems relevant to
in-scope automated controls. This also
included controls related to the
appropriateness of users with access to
request, authorise, and release changes
into the production environment of core
systems relevant to financial reporting.

testing the operating effectiveness of
automated controls key to our audit
testing in relation to system calculations,
the generation of reports, and operation of
system enforced access controls.
We tested mitigating controls where we noted
design or operating effectiveness deficiencies
relating to IT system or application controls
relevant to our audit. We also raised these matters
with the Group.

Annual Report 2023-24 163

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Independent Auditor’s Report to the shareholders of Suncorp Group Limited

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`Other Information`

Other Information is financial and non-financial information in Suncorp Group Limited’s annual report which is provided in addition to the Financial Report and the Auditor’s Report. The Directors are responsible for the Other Information.

Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not express an audit opinion or any form of assurance conclusion thereon, with the exception of the Remuneration Report and our related assurance opinion.

In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so, we consider whether the Other Information is materially inconsistent with the Financial Report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

We are required to report if we conclude that there is a material misstatement of this Other Information, and based on the work we have performed on the Other Information that we obtained prior to the date of this Auditor’s Report we have nothing to report.

`Responsibilities of the Directors for the Financial Report`

The Directors are responsible for:

preparing the Financial Report in accordance with the Corporations Act 2001 , including giving a true and fair view of the financial position and performance of the Group, and in compliance with Australian Accounting Standards and the Corporations Regulations 2001
implementing necessary internal control to enable the preparation of a Financial Report in accordance with the Corporations Act 2001 , including giving a true and fair view of the financial position and performance of the Group, and that is free from material misstatement, whether due to fraud or error
assessing the Group and Company’s ability to continue as a going concern and whether the use of the going concern basis of accounting is appropriate. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Group and Company or to cease operations, or have no realistic alternative but to do so.

`Auditor’s responsibilities for the audit of the Financial Report`

Our objective is:

to obtain reasonable assurance about whether the Financial Report as a whole is free from material misstatement, whether due to fraud or error; and
to issue an Auditor’s Report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Financial Report.

A further description of our responsibilities for the audit of the Financial Report is located at the

164 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS SHAREHOLDER INFORMATION

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Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our Auditor’s Report.

`Report on the Remuneration Report`

`Opinion`

In our opinion, the Remuneration Report of Suncorp Group Limited for the year ended 30 June 2024, complies with Section 300A of the Corporations Act 2001 .

`Directors’ responsibilities`

The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with Section 300A of the Corporations Act 2001 .

`Our responsibilities`

We have audited the Remuneration Report included in pages 54 to 83 of the Directors’ report for the year ended 30 June 2024.

Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards .

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KPMG

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Scott Guse

Partner

Brisbane

19 August 2024

Annual Report 2023-24 165

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Shareholder information

Suncorp Group Limited is a publicly-listed company limited by shares and incorporated in Australia.

Suncorp Group Limited shares are listed on the Australian Securities Exchange (ASX).

Stock exchange information

The number of securities as at 19 July 2024 and the respective codes for all securities are set out below.

Suncorp Group Limited
ASX Security code	Number of securities
SUN	1,272,316,092 ordinary shares
SUNPH	3,890,000 capital notes
SUNPI	4,050,000 capital notes
SUNPJ	3,600,000 capital notes

American depository receipts (ADR) program

ADRs are securities issued in the United States which replicate locally issued ordinary shares that are denominated and pay dividends in US dollars.

Suncorp Group Limited ADRs are negotiable certificates issued by Deutsche Bank AG, with one ADR representing one Suncorp Group Limited ordinary share. They are traded under the symbol SNMCY and are classified as sponsored Level 1.

Five-year summary statistics

		FY24	FY23	FY22	FY21	FY20
Ordinary share price at end of year	($)	17.41	13.49	10.98	11.11	9.23
Number ordinary shares on issue at end of period	(million)	1,272	1,267	1,263	1,283	1,280
Market capitalisation1	($million)	22,151	17,086	13,863	14,254	11,811
Dividend per ordinary share, fully franked	(cents)	78	60	40	74	36
Ά Interim		34	33	23	26	26
Ά Final		44	27	17	40	10
Ά Special		-	-	-	8	-

Note: the information above is as at 30 June.

Market capitalisation calculated using total shares which includes Treasury shares. This also reflects capital management initiatives completed during the performance period.

166 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

SUNCORP GROUP LIMITED ORDINARY SHARES (ASX: SUN)

The table below shows the top 20 Suncorp ordinary shareholders, including shareholders that may hold shares for the benefit of third parties. This information is current as at 19 July 2024.

Top 20 holders

	Number of	% issued
Name	securities	capital
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED	394,878,972	31.04%
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED	207,387,157	16.30%
CITICORP NOMINEES PTY LIMITED	157,658,945	12.39%
BNP PARIBAS NOMINEES PTY LTD (AGENCY LENDING A/C)	40,865,797	3.21%
NATIONAL NOMINEES LIMITED	36,722,977	2.89%
BNP PARIBAS NOMS PTY LTD	19,746,576	1.55%
CITICORP NOMINEES PTY LIMITED (COLONIAL FIRST STATE INV A/C)	15,292,678	1.20%
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED (NT-COMNWLTH SUPER CORP A/C)	9,199,956	0.72%
ARGO INVESTMENTS LIMITED	7,496,097	0.59%
PACIFIC CUSTODIANS PTY LIMITED (EPS CTRL A/C)	6,320,541	0.50%
BNP PARIBAS NOMINEES PTY LTD (HUB24 CUSTODIAL SERV LTD)	3,852,797	0.30%
UBS NOMINEES PTY LTD	3,786,355	0.30%
WASHINGTON H SOUL PATTINSON AND COMPANY LIMITED	3,356,493	0.26%
PACIFIC CUSTODIANS PTY LIMITED (EIP TST A/C)	2,625,834	0.21%
NETWEALTH INVESTMENTS LIMITED (WRAP SERVICES A/C)	2,523,035	0.20%
BNP PARIBAS NOMS (NZ) LTD	2,450,097	0.19%
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED	2,358,015	0.19%
CITICORP NOMINEES PTY LIMITED (143212 NMMT LTD A/C)	1,735,194	0.14%
BKI INVESTMENT COMPANY LIMITED	1,531,408	0.12%
PALM BEACH NOMINEES PTY LIMITED	1,422,746	0.11%

Distribution/analysis by range of holdings

		Number of	% issued
Range	Number of investors	securities	capital
1 to 1,000	78,082	33,012,941	2.59
1,001 to 5,000	58,089	128,377,674	10.09
5,001 to 10,000	8,743	61,389,284	4.83
10,001 to 100,000	4,908	100,827,789	7.93
100,001 and over	114	948,708,404	74.57

The number of investors holding less than a marketable parcel of 30 securities (less than $500 based on a market price of $16.96 on 19 July 2024) is 3,626 and they hold a total of 40,159 securities.

Voting rights

Fully paid ordinary shareholders are entitled to vote at any meeting of members of the Company in person or by proxy and their voting rights are:

Ά on a show of hands – one vote per shareholder

Ά on a poll – one vote per fully paid ordinary share.

Annual Report 2023-24 167

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Substantial shareholders

A person has a ‘substantial holding’ of a company’s shares within the meaning of the Corporations Act if the total votes attached to their voting shares (in which they or their associates have relevant interests) is 5% or more of any class of voting shares. As at 19 July 2024 the following substantial shareholdings were recorded in the Company’s register of substantial shareholdings:

	Number of	% issued
Substantial shareholder	ordinary shares	capital
BlackRock Group1	85,140,477	6.69
State Street Corporation2	84,534,057	6.64
The Vanguard Group, Inc.3	73,694,431	5.79

Substantial shareholder notice dated 21 July 2017.
Substantial shareholder notice dated 4 November 2021.
Substantial shareholder notice dated 28 June 2022.

Dividend Reinvestment Plan

Suncorp’s Dividend Reinvestment Plan (DRP) allows eligible shareholders to reinvest all or part of their ordinary dividends in the Company’s shares, with no brokerage or transaction costs.

Shareholders wishing to join the DRP for future dividends should advise our share registry, Link Market Services, by updating their preferences online or contacting the registry via phone by no later than 5pm on the business day following the record date for each dividend payment.

Shareholders may vary their participation or withdraw from the DRP at any time. Further information is available on the Suncorp Group website or by contacting Link Market Services.

168 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

SUNCORP GROUP LIMITED CAPITAL NOTES 3 (SUNPH)

Top 20 holders

Top 20 holders
Name	As at 19 July 2024
	Number of securities % issued capital
BNP PARIBAS NOMINEES PTY LTD (HUB24 CUSTODIAL SERV LTD) HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED BNP PARIBAS NOMINEES PTY LTD (PITCHER PARTNERS) MUTUAL TRUST PTY LTD NETWEALTH INVESTMENTS LIMITED (WRAP SERVICES A/C) JOHN E GILL TRADING PTY LTD FEDERATION UNIVERSITY AUSTRALIA BNP PARIBAS NOMINEES PTY LTD (IB AU NOMS RETAILCLIENT) NATIONAL NOMINEES LIMITED EASTCOTE PTY LTD (THE VAN-LIESHOUT FAMILY A/C) INVIA CUSTODIAN PTY LIMITED (A/M UNIT A/C) FOPAR NOMINEES PTY LTD IOOF INVESTMENT SERVICES LIMITED (IPS SUPERFUND A/C) INVIA CUSTODIAN PTY LIMITED (BAPTISTCARE LONG TERM A/C) IOOF INVESTMENT SERVICES LIMITED (IOOF IDPS A/C) CORP OF THE TSTEES OF THE ROMAN CATH ARC CAVILLWOOD INVESTMENTS PTY LTD CITICORP NOMINEES PTY LIMITED IOOF INVESTMENT SERVICES LIMITED (IISL NAL ISMA 2 A/C) JOHNSON'S HARDWARE PTY LTD	252,468 6.49% 144,448 3.71% 106,525 2.74% 92,723 2.38% 55,584 1.43% 44,992 1.16% 39,841 1.02% 34,753 0.89% 31,353 0.81% 29,000 0.75% 26,150 0.67% 25,000 0.64% 21,052 0.54% 19,200 0.49% 15,965 0.41% 15,000 0.39% 14,670 0.38% 14,222 0.37% 13,748 0.35% 10,400 0.27%

Distribution/analysis by range of holdings

	Number of	Number of	% issued
Range	investors	securities	capital
1 to 1,000	5,439	1,628,052	41.85
1,001 to 5,000	458	955,123	24.55
5,001 to 10,000	41	299,731	7.71
10,001 to 100,000	17	503,653	12.95
100,001 and over	3	503,441	12.94

The number of investors holding less than a marketable parcel of five securities (less than $500 based on a market price of $102.87 on 19 July 2024) is four and they hold a total of four securities.

Voting rights

Capital note holders have no voting rights at general meetings of members of the Company.

Annual Report 2023-24 169

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

SUNCORP GROUP LIMITED CAPITAL NOTES 4 (SUNPI)

Top 20 holders

Top 20 holders
Name	19 July 2024
	Number of securities % issued capital
CITICORP NOMINEES PTY LIMITED HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED BNP PARIBAS NOMINEES PTY LTD (HUB24 CUSTODIAL SERV LTD) BNP PARIBAS NOMINEES PTY LTD (PITCHER PARTNERS) NETWEALTH INVESTMENTS LIMITED (WRAP SERVICES A/C) LEDA HOLDINGS PTY LTD DIMBULU PTY LTD NATIONAL NOMINEES LIMITED BNP PARIBAS NOMINEES PTY LTD (IB AU NOMS RETAILCLIENT) MUTUAL TRUST PTY LTD IOOF INVESTMENT SERVICES LIMITED IPS SUPERFUND A/C NETWEALTH INVESTMENTS LIMITED (SUPER SERVICES A/C) TERESINA PTY LTD (BAROB PTY LTD SUPER A/C) ANGLICARE SA LTD THE TRUST COMPANY (AUSTRALIA) LIMITED (WCCTFI A/C) IOOF INVESTMENT SERVICES LIMITED (IOOF IDPS A/C) IOOF INVESTMENT SERVICES LIMITED (IISL NAL ISMA 2 A/C) PREMIUM CAPITAL (AUST) PTY LTD RAFFY HOLDINGS PTY LTD (RAFFY A/C) MARK BOWDEN(PASTORAL GROUP)PTY LTD(THE BOWDEN PASTORAL A/C)	199,124 4.92% 153,393 3.79% 151,723 3.75% 137,785 3.40% 123,138 3.04% 60,000 1.48% 50,000 1.23% 47,679 1.18% 46,869 1.16% 37,836 0.93% 35,353 0.87% 24,000 0.59% 22,830 0.56% 20,000 0.49% 20,000 0.49% 19,939 0.49% 13,851 0.34% 13,050 0.32% 12,239 0.30% 10,120 0.25%

Distribution/analysis by range of holdings

	Number of	Number of	% issued
Range	investors	securities	capital
1 to 1,000	4,799	1,599,872	39.50
1,001 to 5,000	493	1,078,136	26.62
5,001 to 10,000	22	173,063	4.27
10,001 to 100,000	15	433,766	10.71
100,001 and over	5	765,163	18.89

The number of investors holding less than a marketable parcel of five securities (less than $500 based on a market price of $103.95 on 19 July 2024) is three and they hold a total of four securities.

Voting rights

Capital note holders have no voting rights at general meetings of members of the Company.

170 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

SUNCORP GROUP LIMITED CAPITAL NOTES 5 (SUNPJ)

Top 20 holders

Name

19 July 2024

Number of
securities
% issued
capital

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CITICORP NOMINEES PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD (HUB24 CUSTODIAL SERV LTD)
DIMBULU PTY LTD
NETWEALTH INVESTMENTS LIMITED (WRAP SERVICES A/C)
BNP PARIBAS NOMINEES PTY LTD (PITCHER PARTNERS)
FORCE 1 PTY LTD (THE VAN LIESHOUT S/FUND A/C)
NATIONAL NOMINEES LIMITED
EASTCOTE PTY LTD (THE VAN-LIESHOUT FAMILY A/C)
INVIA CUSTODIAN PTY LIMITED (A/M UNIT A/C)
INVIA CUSTODIAN PTY LIMITED (WEHI - INVESTMENT POOL A/C)
MUTUAL TRUST PTY LTD
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
THE TRUST COMPANY (AUSTRALIA) LIMITED (WCCTFI A/C)
PDC 2018 PTY LIMITED (PDC A/C)
BNP PARIBAS NOMINEES PTY LTD (IB AU NOMS RETAILCLIENT)
IOOF INVESTMENT SERVICES LIMITED (IPS SUPERFUND A/C)
IOOF INVESTMENT SERVICES LIMITED (IISL NAL ISMA 2 A/C)
FIBORA PTY LTD
NETWEALTH INVESTMENTS LIMITED (SUPER SERVICES A/C)

182,418
5.07%
146,230
4.06%
89,808
2.49%
80,000
2.22%
72,505
2.01%
56,754
1.58%
47,000
1.31%
41,591
1.16%
33,000
0.92%
27,083
0.75%
23,955
0.67%
22,750
0.63%
17,475
0.49%
13,112
0.36%
12,300
0.34%
12,004
0.33%
11,670
0.32%
11,223
0.31%
10,550
0.29%
10,327
0.29%

Distribution/analysis by range of holdings

	Number of	Number of	% issued
Range	investors	securities	capital
1 to 1,000	4,462	1,388,619	38.57
1,001 to 5,000	455	984,259	27.34
5,001 to 10,000	40	295,089	8.20
10,001 to 100,000	19	603,385	16.76
100,001 and over	2	328,648	9.13

The number of investors holding less than a marketable parcel of five securities (less than $500 based on a market price of $103.05 on 19 July 2024) is one and they hold a total of four securities.

Voting rights

Capital note holders have no voting rights at general meetings of members of the Company.

Unquoted Securities

The number of unquoted securities as at 19 July 2024 and the respective codes for these securities are set out below.

ASX Security code	Number of securities	Number of holders
SUNAB	2,388,435 share rights	153
SUNAD	1,457,390performance rights	10

Voting rights

Unquoted security holders have no voting rights at general meetings of members of the Company.

Annual Report 2023-24 171

DIRECTORS' REPORT

OVERVIEW

HOW WE CREATE VALUE

CORPORATE GOVERNANCE

Financial calendar and key payment dates

The financial calendar below may be updated throughout the year. Please refer to suncorpgroup.com.au for up-to-date details. Dividend and distribution dates set out below may be subject to change.

Suncorp considers the payment of ordinary dividends as part of the process of preparing half and full year accounts, taking into consideration the Company’s capital position, the outlook for the operating environment and guidance from regulators. Suncorp generally pays a dividend on its ordinary shares twice a year following the interim and final results announcements and the proposed dates for the next 12 months are set out below.

Suncorp Group Limited (SUN)

Suncorp Group Limited (SUN)
Full year results and fnal dividend announcement	19 August 2024
Final ordinary dividend ex-dividend date	22 August 2024
Final ordinary dividend record date	23 August 2024
Final ordinary dividend payment date	25 September 2024
Annual General Meeting	22 October 2024
Half year results and interim dividend announcement	12 February 2025
Interim ordinary dividend ex-dividend date	17 February 2025
Interim ordinary dividend record date	18 February 2025
Interim ordinarydividendpayment date	31 March 2025

Suncorp Group Limited Capital Notes 3 (SUNPH)

Ex-distribution date	2 September 2024
Distribution payment date	17 September 2024
Ex-distribution date	2 December 2024
Distribution payment date	17 December 2024
Ex-distribution date	28 February 2025
Distribution payment date	17 March 2025
Ex-distribution date	30 May 2025
Distributionpayment date	17 June 2025

Suncorp Group Limited Capital Notes 4 (SUNPI)

Ex-distribution date	2 September 2024
Distribution payment date	17 September 2024
Ex-distribution date	2 December 2024
Distribution payment date	17 December 2024
Ex-distribution date	28 February 2025
Distribution payment date	17 March 2025
Ex-distribution date	30 May 2025
Distributionpayment date	17 June 2025

Suncorp Group Limited Capital Notes 5 (SUNPJ)

Suncorp Group Limited Capital Notes 5 (SUNPJ)
Ex-distribution date	2 September 2024
Distribution payment date	17 September 2024
Ex-distribution date	2 December 2024
Distribution payment date	17 December 2024
Ex-distribution date	28 February 2025
Distribution payment date	17 March 2025
Ex-distribution date	30 May 2025
Distributionpayment date	17 June 2025

172 Annual Report 2023-24

REMUNERATION REPORT

FINANCIAL STATEMENTS

SHAREHOLDER INFORMATION

How to contact us

Registered office

Level 23 Heritage Lanes 80 Ann Street Brisbane, Qld 4000

Company Secretaries

Darren Solomon Cassandra Hamlin

Auditors

KPMG Level 16, Riparian Plaza 71 Eagle Street Brisbane, Qld 4000

Share registry contact details

Link Market Services Limited

PO Box A50 Sydney South, NSW 1235 Australia [email protected] linkmarketservices.com.au 1300 882 012 (inside Australia) or +61 2 8767 1219 (outside Australia)

Suncorp Investor Centre

The Suncorp Group website has a dedicated section for investors: suncorpgroup.com.au/investors.

Investors can access current and historic Company announcements, results announcement materials, the full suite of Suncorp reports and our latest financial calendar and key payment dates for all securities.

Investors can also subscribe to receive regular email updates on the latest Suncorp news and announcements via our Suncorp Group website.

For any other investor queries please contact the Suncorp Investor Relations team by email to [email protected].

Customer Relations

If you have a complaint, compliment or suggestion, please contact our Customer Relations Team via:

Phone: 1800 689 762 (Mon–Fri 9am–5pm AEST) Mail: Suncorp Customer Relations – RE058 Reply Paid 1453 BRISBANE QLD 4001

Email: [email protected] In person: Visit your nearest branch

For other enquires

For any other customer or general queries please visit suncorpgroup.com.au/contact

Managing your shareholding

Shareholders can go to the Link Market Services Investor Centre website to:

Ά update personal details
Ά view details of holding(s) such as your holding balance
Ά view notices of shareholder meetings, financial reports and other registry communications such as dividend statements
Ά register an email address for payment advices and registry communications
Ά obtain and complete forms to have payments made directly to their Australian or New Zealand bank, building society or credit union account
Ά elect to participate in, vary or withdraw from the DRP.

For assistance with the above or any other administrative questions regarding your holding please contact Link Market Services using the contact details provided above. In all communications with the Share Registry, please ensure you quote your Securityholder Reference Number (SRN), or in case of broker sponsored shareholders, your Holder Identification Number (HIN).

Annual Report 2023-24 173

To see more, go online suncorpgroup.com.au

Connect[suncorpgroup.com.au ][@SuncorpGroup][@SuncorpGroup]

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Suncorp Group Limited ABN 66 145 290 124

AI assistant

SUNCORP GROUP LIMITED — Annual Report 2024

65879_rns_2024-08-18_eb09d0c2-b564-4e1a-9bed-1c4ad724cd24.pdf

Our reporting suite

Sustainability Data Pack

Our brands

Performance highlights[1]

99.95%

76%

Message from the Chairman

Dear Shareholders,

A complex external landscape

New Zealand Life Sale

Our performance and capital position

Closing

Sincerely,

Board renewal

Message from the Group CEO and Managing Director

Dear Shareholders,

Our commitment to our customers

Investing in our communities

Our people

Looking ahead

How we create value

About Suncorp Group

Sale of Suncorp Bank

A dedicated Trans-Tasman Insurer

New Zealand Life sale

Our purpose and values

Purpose-driven, creating long-term value

Being @ Suncorp Behaviours

Our strategic priorities

Purpose

Building futures and protecting what matters

Ambition

Foundations

Our financial performance

Suncorp Group

General Insurance GWP by portfolio ($m)

Group Financial Performance[1]

Capital

Natural hazards and Reinsurance

Consumer Insurance

Financial performance

Gross written premium ($m)

Commercial & Personal Injury Insurance

Financial performance

Gross written premium ($m)

Suncorp New Zealand

Financial performance

Gross written premium (NZ$m)

Suncorp Bank

Financial performance

Home lending ($m)

Our approach to sustainability

Engaging our stakeholders

Materiality

Our approach

Key outcomes

Sustainable Development Goals

Learn more

Guiding commitments and frameworks

Our most material topics

Our customers and communities

Strengthening our supply chain

Read more

Getting customers back on their feet

Improving the customer experience

Award-winning commercial claims service

Ongoing commitment to natural hazard resilience advocacy

Read more

Supporting customers and communities through natural hazard events

Supporting customers to increase household resilience

Read more

21

Strengthening our natural hazard preparedness and response

Read more

Education and information sharing for community preparedness

Read more

Financial assistance to strengthen communities

SUNCORP GROUP LIMITED Annual Report 2024