Suncorp aims to grow its strata insurance business and has reclassified the line from consumer to commercial.

“It’s a clear strategic move,” commercial and personal injury insurance chief executive Michael Miller said in response to an analyst’s question on the reclassification.

“With VSL, Vero Specialty Lines, one of the products we do want to enter into is strata ... We have a small strata book in our personal lines business. It’s about $120 million a year.

“The thought process is, bring that across and then run that direct book right next to the intermediated book and grow as one.

“From a pricing point of view, distribution, knowledge, it makes a lot of sense. So, it’s probably just the foundations of building out that strata opportunity.”

Suncorp launched VSL in 2024 and a spokesperson tells insuranceNEWS.com.au: “We’re continuing to add new products.”

Growth in the commercial tailored lines business slowed in the December half, Suncorp said yesterday at its H1 results announcement.

“The rate environment continues to moderate, particularly in high-end property and professional and financial lines,” it said. “This was partly offset by continued strong growth in commercial motor, along with new business momentum from the launch of Vero Specialty Lines products.”

In the platform business, growth across intermediated packages was supported by the connection to an additional broker platform, BizCover, late in FY25.

Citi analysts predict the commercial and injury division will be a key driver of Suncorp’s gross written premium growth this financial year.

They say in a note: “4% GWP growth looks a stretch …  but we forecast 3.8%.

“We expect [Suncorp’s] Australian commercial and personal injury division to be the strongest contributor to this growth with workers’ comp, compulsory third party and packages and pricing all likely to help.”

Suncorp expects full-year GWP growth to be “around the bottom of the mid single digit range”.

When asked what that meant, CEO Steve Johnston said: “We would suggest it would be 4% to 6% and bottom is 4%.”