Suncorp Group's (ASX:SUN) fiscal 2026 results were weaker in comparison with the previous year due to known natural hazards in the fiscal first half, but the company's new five-year reinsurance structure starting in fiscal 2027 should cut hazard-induced earnings volatility, Jefferies said in a Wednesday note.

The company reported fiscal 2026 natural hazards costs of AU$2.02 billion, against an allowance of AU$1.77 billion, across 32 weather events.

Hail impacts in late 2025 in Queensland and New South Wales cost AU$350 million alone, limited by reinsurance cover, the equity research firm said.

The company's "capital Management looks good" as it is now targeting an annual share buyback program of up to AU$250 million on top of the AU$400 million buyback completed in fiscal 2026, Jefferies said.

The investment firm maintained a hold rating on Suncorp with a price target of AU$19.75.

Suncorp Group shares rose nearly 3% in recent Wednesday trade.