Suncorp Group's (ASX:SUN) profit attributable to owners slumped 76% year-on-year in the fiscal first half of 2026, which it attributed to "natural hazard costs" that exceeded its allowance, and lower investment returns.

Profit plummeted to AU$263 million from AU$1.10 billion in the prior year, according to the company's earnings report published Wednesday.

Earnings per share slipped to AU$0.244 from AU$1.01 a year earlier.

Natural hazard costs reached AU$1.32 billion, AU$453 million above the half-year allowance, as the insurer took more than 71,000 claims. The natural hazard expenses a year earlier were AU$503 million.

"The destructive thunderstorms and widespread hailstorms that hit the east coast of Australia, particularly south-east Queensland through October and November, contributed to the majority of claims received over the half, with the giant hailstorm event in November likely to be among our costliest in recent history," Steven Johnston, Suncorp's chief executive officer, said.

Net investment returns fell year on year to AU$259 million from AU$374 million.

Johnston said the insurance trading ratio remains above the company's target operating range of 11.7%.

Meanwhile, Suncorp's gross written premium grew to AU$7.69 billion from AU$7.49 billion in the previous year due to price increases in compulsory third party, partly offset by a decline in workers' compensation. The premium is expected to be around the bottom of the mid-single digit range for the entire 2026 due to the current cycle in commercial in Australia and New Zealand.

A final dividend of AU$0.49 per share will be distributed to shareholders on Sept. 24.

Suncorp's shares fell nearly 4% on Wednesday in Australia.