Suncorp Group Ltd's stock plummeted 5.01% during intraday trading on Wednesday, following the release of its first-half financial results which revealed a sharp decline in profitability.

The Australian insurer reported a 67% drop in its first-half cash earnings to A$270 million, significantly missing market estimates. The dramatic fall was primarily driven by a surge in natural hazard costs, which more than doubled to A$1.32 billion due to multiple severe weather events including hailstorms, floods, and windstorms across Australia and New Zealand.

Further pressuring the stock, the company downgraded its full-year gross written premium growth outlook and slashed its interim dividend to 17 Australian cents per share from 41 cents a year earlier. Analysts noted that the soft revenue performance and challenging outlook contributed to negative investor sentiment.