Morgan Stanley: Suncorp's premium growth is strong, outperforming International Airlines Group (IAG) in the UK

LootboxPhobia · 2026-04-06T19:20:19+00:00

Morgan Stanley analysts are optimistic about Suncorp Group, believing it has greater revenue growth potential. According to the March 2026 premium survey, home insurance saw a year-over-year increase of 6%, while auto insurance experienced a smaller rise, with Suncorp's auto insurance premium hikes being the largest. It is expected that Suncorp will maintain strong premium growth, while IAG faces price competition.

LootboxPhobia

2026-04-06 19:20:19

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Investing.com – Morgan Stanley analysts said in a research report released Monday that, based on stronger revenue growth and revaluation potential, they are more bullish on Suncorp Group (ASX:SUN) than Insurance Australia Group (ASX:IAG).

The investment bank’s March 2026 premium survey showed that home insurance pricing was up 6% year over year, while auto insurance lagged with growth of only 1% year over year, due to Allianz Insurance lowering its prices. Excluding Allianz Insurance, auto insurance pricing rose 3% to 4% year over year.

In the March 2026 quarter, new auto premiums grew 1% year over year, slowing from the 10% growth rate in the December 2025 quarter. Morgan Stanley said that among the insurers surveyed, Suncorp had the largest increase in auto insurance premiums, while Allianz Insurance cut prices to a more competitive level.

Queensland’s compulsory third-party (CTP) insurance premiums rose 9.5% year over year, benefiting Suncorp.

Home insurance showed stronger momentum: new premiums grew 6% in the March 2026 quarter, up from 3% in the December quarter. Most insurers increased their home insurance pricing, but IAG cut prices to match market levels. Excluding IAG, home insurance premiums were up by about 10% year over year.

Morgan Stanley said that due to rising input costs, there remains further room for home insurance pricing to move higher, with plastic pipe prices expected to rise by more than 30%.

The firm forecast that organic underwriting premium revenue for Suncorp Consumer in fiscal 2026 will grow by 5.5%, while IAG will be 3.5%.

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