Good morning, everyone, and welcome to Suncorp's 2026 Annual General Meeting, my first as your Chairman. It is a pleasure to be here with you in Brisbane and to welcome those joining us online. I would particularly like to acknowledge our many retail shareholders, including those here in Queensland, who have supported Suncorp over many years. Your loyalty and engagement are important to your board, and we value the opportunity to talk with you directly today. As chairman of the meeting, I am informed we have 275 shareholders, proxy holders, and other attendees participating today, both here in Brisbane and online. As a quorum is clearly present, I declare the meeting open. Before I proceed, could I please ask everyone here in Brisbane to ensure your mobile phone is on silent mode? Please join me now in welcoming Refiti Tovi, who will deliver a welcome to country.
Refiti is a proud Turrbal woman and the niece of the late Turrbal elder, songwoman Maroochy Barambah. Raised in culture and guided by her elders, she has learned traditional law and protocol. With over a decade of experience in early childhood education, Refiti is deeply passionate about empowering the next generation and strengthening her community through truth-telling, advocacy, and cultural connection. Refiti is here with us today to deliver the welcome to country on behalf of the Turrbal people of Brisbane. Please join your board in making her welcome.
Thank you. Before I start my welcome to country and blessing this morning, I will acknowledge the First Nations and non-First Nations in the room and online, and I will pay my respects to all elders, past and present. Hello, and I come with good spirit and good energy. My name is Songwoman Refiti, and I am a proud Turrbal descendant from the lands we gather on today, Meanjin, also known as Brisbane, the place of the blue waterlily. I am here today to continue my cultural responsibility as a proud songwoman, as I am able to bless the room and connect to you with country. Yes, songwomen do hold our history, but we also hold blessing songs and song lines itself. I am here today to connect with you all.
I am so proud to be here in honor today that I am able to sing the blessing song, the blessing song that creates beautiful and good energy into your space and taking away that bad juju because we want that, right? Yeah. But yes, I usually close my eyes when I do sing this Turrbal blessing song. You are welcome to close your eyes with me, though you do not have to as well. The choice is really yours. I will now sing this Turrbal blessing song, and this song was taught to me by my cousin Baringa. Yes, it was taught to her by her mother, the late Aunty Maroochy Barambah. Thanks to my aunty, I want to be here today. Because of her, I can. I will now sing this song. Let us take a deep breath in and out.
Thank you for your time, and thank you for your presence. Stay well. Thank you.
Thank you again, Refiti, for that beautiful song, and you will be glad that I will not be singing for you today. We really appreciate Refiti being with us here. I would also like to acknowledge the traditional custodians of the land on which we are gathered here in Brisbane and pay my respects to their elders, past and present. I would now like to introduce Belinda Speirs, our Chief Executive, People, Legal, and Corporate Services, to cover the meeting procedures we will be using today.
Thank you, Chairman, and good morning, everyone. For those shareholders and proxy holders who are participating with us at the physical AGM venue in Brisbane and wish to vote, please make sure you can access the Vote+ app using the PIN on your green attendance card, or that you have a yellow paper voting card. In the unlikely event of an emergency, please follow the directions provided by the InterContinental staff. For those shareholders and proxy holders who are joining us online and wish to vote or ask a question, you may be familiar with the platform from our previous AGMs. You also have the opportunity to ask your questions and comments via the questions and comments phone line that is available during the meeting.
To help with the smooth running of the AGM, we invite shareholders and proxy holders who are participating online to submit your comments and questions now. Further details about how to ask questions and make comments using the platform or the phone line are contained in the online AGM guide. You can access the guide through a link at the bottom of the screen or on your website. If you encounter any technical issues with the platform at any time during the meeting, please contact the share registry's online AGM support team at 1-800-990-363. This phone number will remain visible on your screen throughout the meeting. In the unlikely event that technical issues prevent the AGM from proceeding as planned, Suncorp will make announcements via the ASX and the Suncorp website. I would now like to briefly cover the meeting procedures that the Chairman will follow today.
Firstly, this is a meeting of Suncorp shareholders. As set out in the notice of meeting, only shareholders or proxy holders are entitled to vote on the resolutions, ask questions, or make comments. The Chairman will allow a reasonable opportunity to address questions and comments as each item of business is considered. Please ensure your question or comment is relevant to an item of business and to shareholders as a whole, and please be respectful at all times. If there are a large number of shareholders who wish to ask questions, the Chairman may consider introducing a question limit to ensure that all interested shareholders have an opportunity to speak. While there are similar questions, the Chairman will aim to acknowledge those who have asked the question. However, the Chairman will provide a single response in order to streamline today's proceedings.
If you have a matter that you would like to raise as a customer and you are participating here in Brisbane, members of our customer advocate team will be able to assist you in the foyer. Representatives from ANZ are also available in the foyer for any of you who have a customer matter relating to Suncorp Bank. If you are participating online, please contact our customer relations team using the contact details on the last page of the notice of meeting. Any customer-related questions specific to an individual will be referred to our customer relations team for response and will not be addressed during the AGM. Share registry and Suncorp representatives are also available in the foyer to assist with any shareholder-related questions that do not relate to the business of today's meeting.
If you are voting today and need to leave the AGM early, please remember to submit your voting card before you leave. I will now hand you back to your Chairman.
Thank you, Belinda, and thank you to those who have already voted or pre-submitted questions relating to the business to be covered at today's meeting. I would now like to introduce your board of directors, who are all here today in Brisbane. In addition to their significant board experience, each director brings a mix of financial services and other relevant business experience and expertise that enables your board to be effective in governing Suncorp. From your right, David Whiteing. David brings to the board more than 30 years experience leading innovative technology programs in a range of sectors, including professional and financial services. He is a member of the Audit and Risk Committees. Sylvia Falzon. Sylvia chairs the Board People and Remuneration Committee and is a member of the Risk Committee.
She brings to Suncorp valuable experience in a range of customer-facing and regulated industries, including financial services, healthcare, retail, and aged care. Lindsay Tanner. Lindsay has worked at the highest levels of government and business for almost four decades and is a recognized authority on corporate governance, economics, and finance. He is a member of the Risk Committee and also serves on our New Zealand subsidiary boards. Sally Herman. Sally is currently a member of the Board People and Remuneration Committee. She has strong expertise in running retail banking and insurance products, setting strategy for financial services businesses, and working with customers, shareholders, regulators, and government. Simon Machell. Simon has deep strategic and operational knowledge of the insurance industry and brings to Suncorp an international perspective on current industry trends in insurance, together with the insights into risks and opportunities associated with emerging technologies and new business models.
He is currently a member of the Board Risk and People and Remuneration Committees. Sally and Simon are both retiring as directors at the end of today's AGM. I will recognize their respective contributions to your board during my address shortly. Steve Johnston. Steve continues to capably lead Suncorp since his appointment as CEO and managing director in 2019. I will invite Steve to address you later during the meeting. Ian Hammond. Ian chairs the Board Audit Committee and is a member of the Risk Committee. He brings to Suncorp extensive knowledge of the financial services industry, as well as expertise in financial reporting and risk management. Gillian Brown. Gillian is based in Queensland. She has developed broad skills and experience in financial services law, infrastructure, investments, and finance over her 40-year career. Gillian is a member of the Board Audit Committee. Elmer Funke Kupper.
Elmer chairs the Board Risk Committee and is currently a member of the Audit Committee. He has significant financial services experience, as well as experience in navigating demanding regulatory sectors and transforming business models through the adoption of technology and digital services. He has served as CEO of two ASX-listed companies. Elmer is seeking re-election today. Yen Saw. Yen was appointed as a director by your board in June this year and is based in Singapore. She brings to the board more than 30 years' experience in governance and executive leadership across the Asia-Pacific region, spanning a range of sectors. Yen will seek your support to continue as a director through the usual election process later during the meeting, and I will speak more about her then. Also here with your board is Belinda Speirs, who you heard from earlier.
Belinda will moderate the online questions from shareholders and proxy holders during today's meeting. In addition to Belinda, all other members of Suncorp's executive leadership team are also here with us today. Jeremy Robson, our Chief Financial Officer. Lisa Harrison. Lisa was recently appointed our Chief Executive Commercial and Personal Injury Insurance, and before that, she was our Chief Executive of Consumer Insurance. Jimmy Higgins is CEO of Suncorp New Zealand. Michael Miller. Michael recently became Chief Executive Consumer Insurance and was previously our Chief Executive Commercial and Personal Injury Insurance. Michelle Bain. Michelle was recently appointed Chief Risk Officer. Before that, she was Executive General Manager, CTP Insurance and Advocacy. Adam Bennett, our Chief Information Officer. Bridget Messer. Bridget was recently appointed to the new role of Chief Executive Customer Brand and Advocacy and was previously our Chief Risk Officer.
In addition, Bernadette Norrie, Suncorp's customer advocate, is here with us. Before I invite Steve to speak, I will begin today's proceedings with my address. 2026 has been a significant year for Suncorp, having marked just over two years as a standalone Trans-Tasman general insurer following the sale of the bank in 2024. Suncorp is a more focused, customer-centric, and sustainable business. This was a core strategic objective in our decision to sell the bank as we set out to simplify the business to realize value for all stakeholders. It was made in recognition of an increasingly challenging operating environment for both banking and insurance, and at a time when the value of insurance and the continued need for investment in the sector has never been greater. The passing of time has only reinforced the strategic rationale of this decision.
Importantly for shareholders, the strength of being a focused insurer is reflected in the underlying performance and resilience of your company, and it continues to be of growing significance in an external environment that is only becoming more complex and challenging. Climate change and extreme weather continue to test our communities and the insurance industry. At the same time, cost of living pressures remain a very real challenge for many households. While technology and the rapid adoption of artificial intelligence, cyber risk, and heightened geopolitical uncertainty are reshaping the expectations placed on large organizations like ours. These are all very live topics that have remained front and center for your board this year. Across Australia and New Zealand, Suncorp supported customers through 18 declared natural hazard events, resulting in more than 120,000 claims.
The cost of these natural hazards was around AUD 2 billion and forms part of the AUD 10 billion Suncorp paid overall in claims this year. These numbers demonstrate the scale and importance of the role Suncorp plays in people's lives, particularly when the unexpected happens. This was again brought to life, for me, having spent time with a number of customers across Southeast Queensland who were impacted by the destructive hailstorm events that struck in October and November last year. While I have been in the insurance industry for almost 40 years, these moments continue to reinforce to me not only the important protection our products provide, but the immense value our people provide, being there for our customers, both in the immediate aftermath and right through until their claim is finalized. It was also great to visit Suncorp's Townsville Hub earlier this year.
This hub forms an important part of our investment in disaster management and jobs in regional Queensland. These claims numbers also reinforce why a strong and sustainable private insurance sector matters. Insurance helps households, businesses, and communities recover from disruption. It supports confidence and economic activity, and it requires companies like Suncorp to remain financially disciplined, operationally resilient, and focused on customer and shareholder outcomes over the longer term. Suncorp's 2026 performance demonstrates our ability to do just this. We have delivered strong results while supporting customers and communities and investing in our future. Turning to our financial performance, Suncorp reported a net profit after tax of AUD 1.03 billion and cash earnings of AUD 1.04 billion for the financial year, with underlying margins of 11.8% at the top end of our target range. This was achieved despite natural hazard costs exceeding our allowance for the year by AUD 254 million.
Importantly, we further enhanced the resilience of the business this year with the purchase of a multi-year aggregate reinsurance cover, which took effect from the 1st of July. This cover will significantly reduce earnings volatility through periods of elevated natural hazards over the coming five years. Our strong capital position enabled the board to determine a fully franked final ordinary dividend of AUD 0.52 per share, bringing the total fully franked ordinary dividends for financial year 2026 to AUD 0.69 per share. This represents a payout ratio of 70.5% of cash earnings at the midpoint of our target payout ratio. Pleasingly, we were also able to declare a fully franked special dividend of AUD 0.10 per share, which was paid alongside the final dividend earlier this week.
In addition, we announced our intention to buy back up to AUD 250 million of Suncorp shares through an on-market buyback in financial year 2027. This follows the successful completion of a AUD 400 million on-market share buyback in financial year 2026. Notably, this means we have returned more than AUD 4.8 billion of total capital to shareholders over the last three years. There are 238 million fewer shares on issue today than there were six years ago, improving the earnings per share and delivering for our shareholders. These outcomes reflect our disciplined approach to capital management and our ongoing commitment to return capital to shareholders in excess of business needs as appropriate. Suncorp remains focused on long-term shareholder value creation rather than short-term share price movements.
While Suncorp's total shareholder return was down 7.6% in financial year 2026, over the five years to the end of June 2026, Suncorp's total shareholder return was 124.8% versus the ASX 200 performance of 46.2%, and remains positive calendar year to date. I will now touch briefly on board renewal, which has remained a priority this year as we continue to seek the right mix of experience, skills, and diversity to oversee the execution of Suncorp's strategy and navigate the evolving external environment. As I mentioned earlier, at the conclusion of today's AGM, Sally Herman and Simon Machell will retire from the board after serving for 11 and nine years respectively. On behalf of the board of directors and of shareholders, I want to thank Sally and Simon for their very significant contribution to Suncorp and wish them both well for the future.
With Sally and Simon's departures, we are pleased to welcome two new non-executive directors to the board. Yen Saw, who I introduced earlier, joined Suncorp's board in June and brings extensive international experience across insurance, reinsurance, financial services, and consulting, together with strong credentials in technology-led transformation. Her skills are highly relevant to Suncorp's strategic priorities, and she will seek your support for election later in today's meeting. Today, we also announced the appointment of Caroline Clarke, who will join the board on the 2nd of November and stand for shareholder election at our 2027 AGM. Caroline brings considerable experience in leading across large, regulated, consumer-driven businesses with strong credentials in product innovation and digital transformation.
The skills and expertise both Yen and Caroline bring complement those of our existing board and are aligned to Suncorp's customer-focused and technology-led strategic plan, which the board considered this year and was pleased to endorse for the financial year 2027 to 2029 period. The plan is focused on modernizing and transforming to meet the current and future needs of customers and addressing the challenge of insurance affordability and accessibility. While this continues to be a multifaceted issue to solve and cannot be borne by one sector or one company alone, your board and management team take Suncorp's important roles seriously. CEO Steve Johnston will speak more to this in his address. As your Chairman, I am focused on ensuring your board continues to provide constructive oversight, maintain strong governance, and support management in delivering long-term value.
That means balancing the needs of shareholders with our responsibilities to customers, employees, communities, regulators, and the broader insurance system. This year, following completion of a formal competitive audit tender process, the board appointed Ernst & Young as our new external auditor for the 2027 financial year onwards, pending shareholder approval at today's AGM. We have also committed to establishing a formal policy in audit tender frequency to be informed by inputs from government and regulators and developing market practice. On behalf of the board, I thank previous audit partner, KPMG, for their service over many years. In closing, I would like to thank you, our valued shareholders, for your continued support of Suncorp. We don't take this lightly. I would also like to thank my fellow directors for their counsel and commitment, and CEO Steve Johnston and the executive team for their leadership throughout the year.
My sincere gratitude goes to Suncorp's people across Australia and New Zealand, many of whom are also shareholders. Their unwavering commitment to our customers and communities, often in very difficult circumstances, underpins the performance of this company. Suncorp enters the 2027 financial year with solid foundations, a clear strategy, and a strong sense of purpose, and we remain focused on creating sustainable long-term value for our stakeholders. Thank you for your attendance today and for your ongoing support of Suncorp. I'll now hand over to CEO Steve Johnston.
Well, thank you, Chairman, and good morning, everyone. It's again a privilege to address you as shareholders of the Suncorp Group and to provide an update on our performance over the 2026 financial year. While Suncorp is now a standalone insurer across Australia and New Zealand, we continue to be shaped by the resilience, optimism, and the spirit that defines Queensland, which has not only played a significant role in our history, but it remains an equally important part of our future. But we also remain guided by our purpose, which is to build futures and protect what matters. It's this purpose that binds our people together each and every day. It guides the way we support our customers, the way we contribute to our communities, and the way we create sustainable value for you, our shareholders.
The outcomes we achieved this year first and foremost demonstrate that a well-run company can deliver for both customers and for shareholders. The strength of our foundations and the resilience and capability that we have built as a dedicated general insurer underpin our performance, and they remain key to delivering ongoing value. Before I run through the financial performance, I will briefly recap on Suncorp's transformation journey since I took on the role as CEO in 2019. As you can see from the slide that we have put up on the screen, the first phase saw us materially simplify our business and importantly, align all of our teams behind improving the quality of our insurance products and services. Having sold the Life, Wealth, SMART, Suncorp Bank, and the New Zealand Life business, in 2025 we emerged as a simpler pure play insurance company.
Alongside that simplification, we invested in our core insurance infrastructure. We have invested in technology, in data systems, in modern platforms, and the operating capability that we believe we need as a future to carry out our future as a pure play insurer. Importantly, the five-year aggregate reinsurance cover that we secured this year forms part of this phase in combination with our broader reinsurance program that we purchase annually and of course, the natural hazard allowance. Alongside that and the other initiatives, it will significantly strengthen the resilience of our business providing additional protections through periods of elevated natural hazard claims. We are now embarking on the phase where we will leverage those investments in order to create better, more personalized products and customer experiences, all along enhancing the value for both customers and for you shareholders.
These deliberate choices we have made to build a more modern, productive and scalable organization will support Suncorp's next phase of growth, and I will touch on this in a minute. Our priority during 2026, however, was in supporting customers and communities through 18 natural hazard events across Australia and New Zealand. In combination, they generated more than 120,000 natural hazard claims. The October and November storms across Southeast Queensland, I am sure many in the room will remember them, generated more than 37,000 claims alone and required a significant mobilization of our people and our response capability. It is important to remember that behind every one of those claims is a person, a family, a business or a community, and they are dealing with disruption and uncertainty.
I have had the opportunity to visit a number of these communities over the course of the past year, and what always stands out to me is the commitment of our teams on the ground supporting customers at what is often one of the most difficult times in their lives. Just a few weeks ago, for example, I spent time with impacted customers in the very hard-hit community of Clifton, which is near Toowoomba, west of Brisbane. Our mobile disaster response hub, the caravan, was stationed there for the fifth time in the 10 months since the destructive hail storm struck. And of course, that caravan and our team provide invaluable face-to-face claim support for our customers. Many of course, of whom are elderly and experiencing vulnerability.
What was very clear to me from visiting Clifton in that community was that we were the only insurer, the only insurer providing this on the ground in-person assistance, and that makes all the difference for our customers as they work their way through what can be sometimes complex and lengthy repair journeys. As I've said many times, our focus cannot be only on responding after disaster strikes. As a prevention-led insurer, we continue to invest in resilience partnerships and data-led initiatives that help our customers understand and reduce their risk. This remains the surest way to reduce premiums. Reduce the risk, reduce the premium. Over many years of advocating for greater investment in mitigation, those initiatives that we have advocated for have started to pay off, with governments now recognizing that a AUD 1 spent in preparation saves many, many, many dollars in mopping up.
Funding is finally starting to flow into mitigating the impact of Australia's harsh climate on its citizens. However, the challenge we now face is that with the shortage of design-ready projects, which would, in accumulation, change the dial on Australia's mitigation imperative. With a chronic underinvestment in mitigation over the last decade or more, our builders, engineers, town planners, and hydrologists have understandably redirected their sought-after skills elsewhere. Skills that will be increasingly in hot demand as we edge closer to the 2032 Olympic and Paralympic Games. The consequence of all of this is that those mitigation dollars are disproportionately being invested in incremental rather than much-needed transformational infrastructure projects like levee banks, water storage facilities, and modern urban stormwater egress.
Right now, today, roughly one in 10 Australian homes are high risk to extreme weather, with too many having been built in areas designed to flood, to burn or erode, often with little or no structural measures in place to protect those homes or the citizens that live in them. As I've said many times, the 'build, build, build' mantra to solve today's issue of housing affordability and availability comes with the potential for corners to be cut, and then we, as a community, put more people in harm's way. We've made great advances in how we think about a more resilient Australia. We talk about it every year, particularly as the summer season approaches.
It's now time to create a clear, long-term national plan, one that commits the resources and the coordination of the Commonwealth to deliver resilience infrastructure initiatives that provide real benefit to those communities in need. Turning to our financial performance and just expanding on the comments provided by Duncan, our FY 2026 results highlight the underlying trajectory of our business. As you can see from the slide, the dashboard on the slide that we've put up on the screen, we delivered cash earnings of AUD 1.04 billion and net profit after tax of AUD 1.03 billion. Underlying earnings, which I often record as the best means of understanding the year-on-year performance of a general insurance business, increased by 4.5%.
In addition, we improved our expense ratio and we grew in almost all portfolios with the underlying insurance trading ratio ending the year at 11.8%, and that is now the fifth consecutive reporting period where the margin has been at the top end of our target range. Looking ahead, Suncorp has a unique opportunity to help reshape the future of insurance. Our strong capital position and the targeted strategic investments in platform modernization and operational transformation underpin our opportunity. These investments will allow us to create more contemporary products, deliver highly personalized customer experiences, increase digital self-serve, and use AI at scale to transform customer and claims journeys. This is important because insurance is fundamentally changing. Customers are increasingly expecting products and services that reflect their individual circumstances.
If a customer invests in making their home more resilient, improving maintenance or reducing their risk, they will increasingly expect that to be recognized in the price they pay for their insurance product. The same is true for motor and for commercial, as it has typically been for many years. Importantly, the delivery of our strategy will see Suncorp make meaningful progress in improving both the affordability and accessibility of insurance for Australians and New Zealanders. Before I close, I wanted to remind you that in December, we at Suncorp celebrate 30 years since the establishment of the modern Suncorp in 1996. Many in the room will remember it well. Our business has seen a lot of change, and plenty of ups and a few downs over that time.
As I am sure you would agree, today we stand as a strong and resilient contributor to the Australian, New Zealand, and particularly the Queensland economy. In closing, I want to thank the board and the executive leadership team for their ongoing support. In particular, Simon and Sally, who are leaving us today. They have been a backbone of support for this organization and the management team over a long period of time. I also sincerely thank the Suncorp team members for their dedication to Suncorp, and for making a real difference for our customers and the communities again this year. To you, our shareholders, thank you for your ongoing trust and confidence in Suncorp, and for our future as a leading insurer.
We are proud of the role we play for our customers and the communities, and we remain firmly focused on delivering sustainable value for you, our shareholders, over the longer term. Thank you, and I will now hand back to Duncan.
Thank you, Steve. Now to the formal part of the meeting. All resolutions for consideration today will be put to a poll, which I now declare open. The direct and proxy votes that have been received prior to the AGM were released on the ASX platform this morning, and will be shown on the screen before we vote on each resolution. As set out in the notice of meeting, I intend to vote all undirected proxies held by me as Chairman of the meeting in favor of each resolution. The first item of business today is to receive and consider the financial report, director's report, and auditor's report for Suncorp Group Limited and its controlled entities for the year ended 30 June, 2026.
KPMG was our external auditor for the FY 2026 year, and David Kells, the lead partner for the FY 2026 audit is here with us today to answer any questions you may have about the auditor's report or the conduct of the audit. As Belinda mentioned earlier, I will first address a number of relevant questions received from shareholders prior to the meeting. In the meantime, if you are here in Brisbane and wish to ask a question about these matters, please make your way to the closest microphone. If you are participating online, please submit your questions or comments now, or register your question via the phone line. Belinda, could you please read our first pre-submitted shareholder question?
Thank you, Chairman. We have received questions regarding Suncorp's recent share price performance from shareholders Mrs. Narelle Brown, Mr. Richard Williams, and Mr. Philip Paine. We have selected Mrs. Brown's question to be read, as it best represents the themes raised. Mrs. Brown asks, "What factors have influenced the poor share price performance, and how does the board assess shareholder outcomes when considering remuneration?"
Thank you Mrs. Brown, Mr. Williams, and Mr. Paine for your questions. As I said during my address, our focus is on delivering long-term shareholder value. In the short term, as we all know, share price performance can be volatile, and is not necessarily reflective of the performance of the business and could be driven by other market factors. In FY 2026, our underlying earnings, which removes the variability associated with natural hazards and investment markets, grew by 4.5%. Over the last five years to the end of June 2026, Suncorp's total shareholder return was approximately 125% versus the ASX 200 performance of 46%, and remains positive calendar year to date. Further, as I said, in FY 2026, Suncorp returned significant capital to shareholders, which should be taken into account when assessing shareholder returns.
The remuneration outcomes disclosed this year appropriately affect both company performance and the need to attract and retain the leadership capability required to deliver on our ambitious strategy and continue generating long-term value for you, our shareholders. Our long-term incentive plan has a direct link to shareholder outcomes through 40% weighting on relative total shareholder return and a further 30% weighting on cash return on tangible equity. Next question please, Belinda.
Thank you, Chairman. We have received two questions from shareholder Michelle Tay, which follow similar themes, so I will read them together. The first question is: Given the massive push for Suncorp to use AI in the business, how do you balance the executives wanting to use AI while also acknowledging the negative impacts AI has on the people that use it, and the environmental and climate impacts? Her second question is: Given the success Suncorp has had with the pledge to invest in no new fossil projects and the promising results we can see in the annual report to help make a positive impact on climate, does Suncorp intend to also reduce investment in AI systems and infrastructure given the widely known environmental impacts?
Thank you, Ms. Tay, for your questions. I do not think anybody could miss the current, very live debate in our community around the concerns around the environmental impact on AI and also the much broader debate about the growth of data centers and the resources they require. We acknowledge these are important issues, particularly as Australia navigates the energy transition and the increasing demand for digital infrastructure. Secondly, I would say that climate risk is absolutely fundamental to Suncorp's business, which is why we take the impacts incredibly seriously. However, we do not see it as a choice between climate action and AI. We remain committed to using AI responsibly to improve customer experience, support and empower our people, and help build a more responsive, efficient, and affordable insurer.
This includes a greater focus on monitoring emission impacts from Suncorp's proportion of cloud technology and the overall environmental performance of our technology partners through our climate transition plan. Through this transition plan commitment, we will monitor the emissions performance of our most material suppliers by spend, and build an understanding of our technology providers' performance year on year. Next question, Belinda.
Thank you, Chairman. We have received questions regarding Suncorp's involvement with ARMA Group from shareholders Mr. John Harris and Mr. Wesley Mawson. We have selected Mr. Harris's question to be read as it best represents the themes raised. Mr. Harris asks: Has Suncorp and its subsidiaries ceased all commercial arrangements with Credit Clear and its subsidiaries, in particular ARMA Group and Force Legal? Is the board happy to continue using companies against which the ACCC has taken court action, knowing the reputational damage that will ensue?
Thank you, Mr. Harris and Mr. Mawson, for your questions. Firstly, I would like to begin by adding my apology to the apology already given by the company to Mrs. Walker, and acknowledging that the conduct is completely unacceptable and unreservedly apologize. Immediately on becoming aware of the matters relating to Mrs. Walker, and I can assure you this has had some considerable discussion around the board table, Suncorp investigated and took action against ARMA, which is contracted by Suncorp to perform some of our motor claims recoveries. The arrangements we implemented with ARMA already included contractual obligations to adhere to a number of standards, including Australian Consumer Law and the General Insurance Code of Practice. ARMA accepted that its conduct relating to Mrs. Walker was not satisfactory, and the individual concerned was released from duty.
A review of controls was also undertaken by Suncorp, and staff supporting Suncorp's customers have since had refresher training on relevant procedures. As I said, Suncorp additionally apologized to Mrs. Walker and offered a goodwill payment. The Federal Court proceedings involving ARMA remain before the courts and have not been determined. Suncorp has no involvement in the proceedings, and it would be inappropriate for me to say more than that. We never use Force Legal. I would say, though, in concluding, that recoveries do play an important part, an important role in supporting overall insurance affordability, and we remain committed to ensuring our service providers uphold the conduct we expect from them and in line with all regulatory obligations. Next question, Belinda.
Thank you, Chairman. We have received a question from shareholder Mrs. Bretta Chapman. Her question is: What mechanisms does the board use to audit and prevent duplicated resource expenditure by third-party contractors and internal claims assessors on individual claims? How is management being held accountable for the operational efficiencies that directly impact the group's combined operating ratio and shareholder returns?
Thank you, Mrs. Chapman, for your question. Anybody who has been unfortunate enough to have a complex home claim in particular will know how complex they can be and how many parties are involved. Operational efficiency in claims is a really important area of focus for management and for the board, and we continuously review our claims processes to ensure we are delivering timely customer outcomes while maintaining appropriate controls and oversight. Depending on the complexity of the claim, there are many instances where simply there are multiple visits to a property from different claims specialists performing distinct roles, such as assessing damage, developing repair scopes, providing engineering advice, or overseeing repair works. That can be required, and that is just a fact of life. These activities support claim activity, claim accuracy, safety, and quality outcomes.
That said, reducing avoidable re-inspections and repeat visits remains an important focus, and we are investing in digital assessment capabilities, technologies, and more integrated claims and supply chain processes to improve efficiency and reduce handoffs across the claims journey. The board oversees management's performance through regular reporting on claims cost, supplier performance, customer outcomes, and financial results. Suppliers and internal team that benefits customers while supporting strong operating performance. Next question, please, Belinda.
Thank you, Chairman. We have received two questions from shareholder Mrs. Natasha Lee. Her first question is: With greater understanding and awareness by staff, what safeguards are included to review and identify issues arising from the application of AI?
Thank you, Ms. Lee, for your question. As we continue to expand the use of artificial intelligence across the organization, we absolutely recognize as a board that strong governance and oversight and controls are absolutely critical in ensuring it is used responsibly and safely. At Suncorp, all AI initiatives are subject to our established risk and governance frameworks, where AI use cases are assessed against our risk appetite, data ethics commitments, and governance standards. Additionally, we have a dedicated AI governance structure, including board and executive oversight, supported by an AI council and an AI safety framework. Our approach aligns with the Australian government's AI safety standards and AI ethics principles. The Board and Risk Committee receive regular updates on AI adoption, governance, and risk management to ensure appropriate oversight as our use of AI evolves.
We also take the opportunity as a board to observe and touch some of the AI use cases that are implemented. Our safeguards include, across the organization, testing, monitoring, human oversight, and review mechanisms, both before, during, and after deployment. For higher risk applications, particularly where decisions may have a material customer impact or financial impact, human review remains an important part of the process. We also continue to invest in workforce capability, training, and responsible use guardrails so that our people understand both the opportunity and limitations of AI and can apply it appropriately to their day-to-day roles. Next question, please, Belinda.
Thank you, Chairman. Ms. Lee's second question is: Could you outline how the AAMI Driver Rewards work? That is it app-based, and can drivers decide when and how their behavior will be monitored? What rewards and enticements are provided to maintain take-up and use of this program?
Thank you, Ms. Lee, for your question. I am delighted to be able to talk about the AAMI Driver Rewards. Thank you for giving me the opportunity to talk about it. I am a user of it, so I have first-hand experience. The AAMI Driver Rewards feature is in the AAMI app, and it uses telematics technology to help customers like myself better understand my driving habits, which I don't always want to understand. Through smartphone sensors and driving data, the app measures five key driving behaviors, braking, acceleration, cornering, speed, and phone use. Then you get a score out of 100. I'm pretty good on cornering, speed, and phone use, but not so good on acceleration and braking.
I do try to get over 85 every time because it's good to get over 85, because if you are an eligible customer and you receive a driving score greater than 85 on the first of each month, you can unlock cashback offers from participating retailers. If you're not on it's easy to get on. To get started, you simply have to access the driver section of the AAMI app. Complete the onboarding process and enable the required permissions, such as location and motion tracking. If you don't want to do it, there's no compulsion for anybody to use the app. Next question please, Belinda.
Thank you, Chairman. Shareholders, please hold any questions relating to specific resolutions until the team member at the microphone knows who you are, so they can introduce you to the meeting.
Thank you. Maybe microphone number two.
Chairman, may I please introduce Clyde Ashton, who is a shareholder.
Good morning. My question is, due to the consolidation of the business, I am not sure why you have maintained the same size board. Related to that, is the reasoning for having a director based in Singapore looking at expansion of the business into Asia in the future?
Thank you, Mr. Ashton, for your question. Really appreciate it. Firstly, let me say that we have actually reduced, even though it looks like there is a lot of us today. Two are retiring at the end of the meeting, so we are slightly up. But by the end of the meeting, we will have reduced the size of the board from when we had the bank and a wider business. We are very mindful of that consideration. At the same time, it is really important for us to have a broad set of skills across the board so that we have the diversity we need in both experience, skills, and background, and thinking, that enables us to collectively govern Suncorp appropriately. We will continue to just maintain a watching brief on the size of the board over time.
In terms of Yen's appointment, no, it does not signal any desire to move offshore. We just believe that it is really important for Australia and New Zealand companies to get an international global insight. Insurance is a very global business, and whilst we are only based in Australia and New Zealand, having someone offshore, which Simon has brought for many years, and Yen will now bring, it just gives us a broader perspective of what is happening in other markets and what might apply to us here. That is the logic behind that. Thank you. Question, maybe microphone one.
Chairman, may I please introduce Mr. David Loosemore from the Australian Shareholders' Association.
My name is David Loosemore. I am a volunteer representing Australian Shareholders' Association, and hold proxies from 172 shareholders, representing 700,000 shares. Mr. Chairman, natural disaster claims cost Suncorp AUD 2 billion last year. That was about a quarter of a billion more than budgeted. Does the board think this is the new normal?
Thank you, Mr. Loosemore, for your question. It was lovely to meet you a couple of weeks ago. Trying to predict what the new norm is for this year's weather and next year's weather, if any of us knew the answer exactly to that, we would be probably doing other things. However, what we do is as we think about the way we set our natural hazard allowance, we do very detailed modeling. We use multiple models to try and get the best view of what we think is the most likely outcome for any particular year. We try to set that before the reinsurance cover that we've now purchased. We try to set that between a six to seven out of 10 years we're likely to be on the right side of the ledger.
We've obviously bought some additional reinsurance cover this year for the next five years, which helps to increase the probability of sufficiency for those who are actuarial in the room, either likelihood of it being right or being too much to 90%. But it still means one in 10 years, there will be some volatility. That is the nature of the insurance business. That's the business we are in. That's the risk that we understand, but that we're trying to make sure we get the natural hazard allowance as accurate as we possibly can be. But there is an inherent volatility from period to period in natural hazards.
Thank you for telling ASA that Suncorp spent about AUD 100,000 on political events last year. Will you publish that figure in the annual report each year so all shareholders can see it?
I note your request on that, and we'll certainly consider that for next year's annual report. Microphone two.
Chairman, may I please introduce Mr. Rick Williams, who is a shareholder.
Yes. Good morning, all. This is about performance. I wrote to Mr. Johnston back in May. He put me across to the head of IT. I wrote to you, Mr. West, in August, and I had not received a response. It is to do with I have been associated with Suncorp for probably over 40 years. I have been a shareholder for 30. I look and I see CHOICE give us a 66% approval rating on our core business. I see Trustpilot give us a 1.5 out of five on our core business. Extremely low, in my opinion. I think my question that I have actually, I know that we glossed over, does the board continue to allow the share price and dividends to plummet based on the poor performance and practices of corporate management?
This is in the area of poorly designed, I called it algorithms, they addressed me and told me it was tooltips, in the online portables, which fail honest consumers, causing management to deny legitimate claims and giving the corporation a bad name. I have tried to address this with management. They are really not interested in hearing it, and I would like to hear what you are going to do about this failure in our IT, that we are not supporting Queenslanders. Queenslanders have relied on Suncorp and the group for 50 years, longer, and I feel that they are actually failing. That is going to have a reflect on the people in this room and the shareholders across the board, because 66% and a 1.5 out of five rating is pretty low. I would like your answers, please. Thank you.
Thank you, Mr. Williams, and thank you for writing to me. I am afraid I never got the letter, so I am happy if you give me another copy, I will respond to that because I would not not respond to a letter if I got it. I do not know where it has gone, but I am happy to take that from you. In terms of share price performance, maybe I will start there and then move to customer components. So share price, I think I outlined in my speech that whilst we have had some volatility during the last 12 months, our overall five-year total shareholder return is 125%, roughly, which is way in excess of the ASX 200 performance. So your company has been performing well over that five-year period.
In addition to that, we have given AUD 4.8 billion of capital back to shareholders in the last few years, which equates to over AUD 5.20 per shareholder over that period. Again, I think we have looked after shareholders well over that period, but we can never be complacent on that. I completely accept that point. In terms of customer components, I am happy to have a conversation with you on the detail outside the room on what is going on in our systems. But overall, what we are seeing is our net promoter score, which is the way that we measure how our customers feel about us, has continued to improve over the last 12 months. But we acknowledge that it is every single customer interaction that really counts, as well as the average, and we do not get everything right every time.
It is our commitment to make sure that we do try to get everything right every time, and where we do not, we will listen to customers and try to improve that. But on average, we are improving our position from a customer point of view. Thank you. Next question. Microphone one.
Chairman, may I please introduce Mr. Gary Bilby, who is a shareholder.
Thank you, Chair. News, Suncorp's debt collector engaged in worse kind of bullying, former ACCC chair says. As a result of that, there were notices sent to individuals that were allegedly misleading, factually incorrect, overly aggressive, and likely to cause extreme stress. As a result, there is a court case now taking place involving Suncorp. The person involved that was named received an apology from Suncorp and compensation of AUD 1,500 goodwill. How many other individuals have been in contact with Suncorp about the debt enforcement notices? Has Suncorp made further compensation payments? If so, what figure are we? Since it is alleged approximately 320,000 debt enforcement notices have been sent to individuals, this would suggest it has occurred over some period of time, probably [inaudible] . The first Suncorp became aware of the unsatisfactory enforcement actions being carried out.
Or was it the case the members of the Audit and Risk Committee were asleep at the wheel? Perhaps the Chairman or the chair of the Audit and Risk Committee would like to address the issue and provide an update.
I will deal with the issue. I gave a bit of an update in the answer to an earlier question and acknowledged that the conduct in respect of Mrs. Walker was unacceptable, completely unacceptable, and we issue, and continue to issue, an unreserved apology to her. The matter that you refer to around ARMA and the ACCC is completely separate. Suncorp is not part of that. The numbers that you have quoted are not part of Suncorp being involved in that. Yes, we have had one case that we are aware of, but we are not part of the wider part. Obviously, there is not much more I can say on anything that is in front of the court, but it does not involve Suncorp. I can say that.
Okay. With regard to the Risk Committee, were they aware of the situation? Because it has obviously been going on for a number of years.
As I say, that matter does not impact on Suncorp. So we have one event, and obviously we have discussed it as a board and as a Risk Committee, that one event, as we do any serious events that occur. But it is not something that is systematic for Suncorp, and as a result, it is not something that we would have spent time on because there is not the issue.
So we won't see any more compensation being paid to any other individual? 320,000.
Not as far as I'm aware at this point in time. If we found any further individuals, we would continue to look after them properly, because what happened shouldn't have happened.
Okay, so there's one out of 320,000 enforcement notices that you're aware of, and you've had no other involvement since then?
That's my-
Compensation.
That's my understanding.
Okay. On the record.
Other questions in the room? I don't think there are any other questions. So that appears to be all the general questions here in Brisbane. Do we have any general questions online or via the phone line, Belinda?
Chairman, I can confirm that there are no online or phone questions for this item of business.
Thank you. I'm just looking in the room to see whether there are still some additional questions on this item in the room. Yes, there are. I will just give a pause for everyone to have the opportunity to ask their questions on this item. Microphone two.
Chairman, may I please present Robert Bucci? He's a shareholder.
Good afternoon, everyone. Thank you, members there. My question is about reinsurance, and we've mentioned it a number of times. I guess when you have policies when you reach a certain amount, say we had an event like the hail storm. I'm going to use a broad figure of, like, AUD 500 million. When we reach that amount, do the reinsurers pay everything above that, or is it more complex?
No, it's basically the amount that we reach, which is AUD 350 million for the first event, if I've got that right. Then above that amount is up to the maximum ceiling on the reinsurance, it depends on the reinsurance area, up to the maximum ceiling, which is AUD 6.4 billion, I think, from memory. That is all paid by the reinsurers.
Thank you very much. Cheers.
Thank you. Microphone one.
Chairman, may I please introduce Des Hillcoat, who is a shareholder.
Well, my suggestion is that why haven't we got an office here in Brisbane so that we can personally go and talk about our personal problems with Suncorp, rather than by using a phone or a computer? I think some of us would prefer to talk in person. I do have a hearing problem, so I find it difficult on the phone. So that's a suggestion from me, that you establish an office here in Brisbane for people to go and have a personal conversation with them. Thank you.
Thank you. Thank you for your suggestion. Just a couple of things I might then throw to Steve to make any other comments on it. Firstly, for those with hearing [audio distortion], that would be helpful. Secondly, particularly at times of claims, we are very committed to going out into communities, and we've, over the last few years, developed caravans that can go and be in communities and talk to people, particularly after events, which is the most sensitive and difficult time for people, and we find those are really highly valued in those communities. The ability to just go and talk to somebody face-to-face is particularly important at the time of claim time. So they're my couple comments. Steve, did you want to add?
Yeah, I think I mentioned it in my presentation. We do send caravans out to the big claim events because we recognize fully that there's a group of our customers who prefer to deal with us face-to-face, and those caravans serve a very legitimate and a very useful purpose in big events, given the complexity of some of those events. That's the first thing. Second thing is, as we move forward through a digital era, probably into AI, around distribution of our products, we have to recognize clearly that there will be people in our communities who do not like or feel comfortable interacting with an insurance company through either digital or AI means. So one of the key elements of our strategy is to make sure that we do have alternatives, and many of those alternatives will be around our sales and service activities over the phone.
You can talk to a person if you need to. I'm sure if you identified yourself in that telephone call as needing someone to deal with face-to-face, I'm sure that we could identify that pretty quickly and find a pathway for you to be able to have that interaction. We do have an incredibly big presence here in Brisbane. We're the biggest employers in the state. This is our head office, so we have a presence here, and I'm sure we can find a pathway for you or any individual that needs that specific service.
Thank you, Steve. Any other questions in the room on this item? No, I don't think so. Having addressed all the general questions and comments, we'll move to the two remuneration-related items of business. Firstly, I'd like to introduce the advisory vote on the FY 2026 Remuneration Report, which all shareholders have had the opportunity to review. If you're here in Brisbane and would like to ask a question on the remuneration report, please move to a microphone now. Your board believes the remuneration arrangements as outlined in the remuneration report are strategically aligned and drive high performance. The board also believes it has awarded fair and executive leadership team, having regard to the overall performance of Suncorp. In setting our remuneration arrangements, we have a program of active engagement with institutional investors, proxy advisors, and the Australian Shareholders' Association. We also take into account feedback from shareholders more generally.
Noting each director has a personal interest in their own remuneration from the company, as described in the remuneration report, the board recommends shareholders vote in favor of this resolution. Details of direct votes and proxy votes lodged prior to the AGM in relation to this resolution now appear on the screen. Would any shareholder here in Brisbane who wishes to ask a question on, if you haven't done so already? Thank you. Microphone one.
Chairman, may I please introduce David Loosemore from the Australian Shareholders' Association.
Mr. Chairman, the CEO's maximum annual bonus has gone up by a quarter, but his long-term incentives stayed the same. Why was the bonus increased, and why wasn't the long-term incentive reduced to balance it?
The increase incentivized the CEO to outperform and was set in the context of external market data. Historically, the maximum and the target for the CEO were the same, and we decided that it was appropriate to create capacity for the CEO to outperform. The remuneration, as you know and as we talked about, is benchmarked and determined as reasonable to uplift the maximum STI opportunity without offsetting that with a change in the LTI. We think the LTI is really important in aligning management and the CEO in aligning with long-term shareholder interests. Steve's package remains reasonable against the market, being at median against the financial services comparator group and just above the median against the market cap group.
The CEO's STI payout over the last five years, just for background, on average is 88% of target, with four of those years being below target and one year at target. If the higher maximum opportunity of 125% had been in place, it would have made no difference to the actual STI outcomes in at least four of the five years.
Suncorp told ASA which eight companies it compares the CEO's pay against. They include IAG, QBE, and the four big banks. Will you name these companies in future remuneration reports?
Again, we are happy to take that on notice. As I said in the meeting, it is always a bit of a balance on remuneration reports are long and complicated already, and so getting the balance right about putting too much information in there, which we are happy to disclose, but it just means there is more and more in there. We do get lots of positive feedback, actually, from various people about the simplicity and the readability of our remuneration report, and Sylvia has done a great job with the team on that over the years. But we will take it on notice and have a think about it again for you. Other questions in the room? It appears that there are no. That addresses all the remuneration report questions here in Brisbane. Do we have any questions on this resolution online or via the phone line?
Thank you, Chairman. I can confirm that there are no online or phone questions for this item of business.
Thank you, Belinda. As this addresses all questions and comments on the remuneration report, would you now please now vote using the voting card in the online portal and the Vote+ app or your paper voting card. Details of direct votes and proxies lodged prior to the AGM in relation to this resolution are again shown on the screen. Taking into account the direct and proxy votes shown on the screen and the total number of shares being voted today, it appears resolution one will be passed. The next item of business is to seek shareholder approval for the grant of 171,947 performance rights to your CEO and Managing Director, Steve Johnston. If you are here in Brisbane and would like to ask a question on this resolution, please move to a microphone now.
Maybe I will just say the purpose of the long-term incentive allocation is to focus your CEO on Suncorp's long-term business strategy, align his interests with those of shareholders, and support the creation of long-term shareholder value. APRA's CPS 511 requires long-term incentives to have both financial and non-financial metrics and measures. As set out in the notice of meeting, Suncorp's performance measures are based on relative total shareholder return, cash return on tangible equity, relative customer net promoter score, and relative trust and reputation. The proposed performance rights will represent the CEO's long-term incentive remuneration for financial year 2027. Further details are included in the notice of meeting. The board, with Steve Johnston abstaining, recommends shareholders vote in favor of this resolution. Again, details of direct votes and proxies lodged prior to the AGM in relation to this resolution now appear on the screen.
Would any shareholder here in Brisbane who wishes to ask a question on this resolution now move to your nearest microphone? Microphone one.
Chairman, may I please reintroduce Mr. David Loosemore from the Australian Shareholders' Association.
Mr. Chairman, part of the CEO's award depends on a return target that will not be published until 2030. Can you confirm the target is higher than Suncorp's cost of capital? Is it well above what Suncorp earns today?
Thank you. I am not going to answer specifically on what the targets are, and we are very deliberate about why we do not do that. They are commercial in confidence. They are based on the expectation of delivery through the three-year financial plan that we signed off for the years 2027 to 2029, and then roll that forward one year. Let me assure you from the board's point of view that we sign off a challenging and stretching plan with management, and it reflects those components.
Yes. I was not asking for the target. I was asking whether it was higher than the cost of capital.
I can assure you, we would not accept a plan that was below the cost of capital.
Is it well above what Suncorp earns today?
I am not going to get into the debate about the relative compared to today because that is giving potentially advice or forecast on our future expectations, which I am not going to do for the obvious reasons. Thank you for your question anyway. Other questions on this item in the room? No, that looks like that is all the questions here on this resolution in Brisbane. Do we have any questions online or on the phone?
I can confirm there are no online or phone questions for this item of business.
Thank you, Belinda. As that addresses all questions and comments on this resolution, would you please now vote using the voting card in the online portal, the Vote+ app, or your paper voting card. Again, details of direct votes and proxies lodged prior to the AGM in relation to this resolution are again shown on the screen. Taking into account the direct and proxy votes shown on the screen and the total number of shares being voted today, it appears resolution two will be passed. The next item of business is to seek shareholder approval for the appointment of Ernst & Young as external auditor of Suncorp. If you are here in Brisbane and would like to ask a question on this resolution, please move to your nearest microphone now.
As I mentioned earlier, as announced on the 12th of August this year, your board resolved to appoint EY as the new external auditor of Suncorp from the end of today's AGM, subject to receiving shareholder approval. EY's appointment was also subject to the Australian Securities and Investments Commission providing the required consent to KPMG's resignation, which was received on the 4th of September . EY has consented in writing to its appointment, subject to shareholder approval. EY has also met all relevant requirements, including independence criteria. Ian Hammond, as a former partner of one of the tender participants, is making no recommendation in relation to this resolution. All other directors recommend shareholders vote in favor of this resolution. Details of direct votes and proxies lodged prior to the AGM in relation to this resolution now appear on the screen.
Would any shareholder here in Brisbane who wishes to ask a question on this resolution now move to your nearest microphone, if you haven't already?
Mr. Chairman, may I please reintroduce David Loosemore from the Australian Shareholders' Association.
Mr. Chairman, ASA welcomes the audit tender, which we asked for last year. Will the change to EY cost shareholders more or less? How will the handover from KPMG be managed?
Maybe I take the second question first. KPMG have been incredibly professional right through this year's audit. EY are ready to roll. The transition and part of the consideration by the board subcommittee, as you might expect, that considered this matter and then the board, was that we could fulfill a smooth transition effectively, and we're very confident that will happen. In terms of overall cost, the tender was good for shareholders. Let me just put that that way. That appears to be address all the questions in the room on this resolution. Do we have any questions online or on the phone?
Chairman, I can confirm that there are no online or phone questions for this item of business.
Thank you, Belinda. As that addresses all questions and comments on this resolution, would you please now vote using the voting card in the online portal, and Vote+ app, or your paper voting card. Details of direct proxies and direct votes and proxies lodged prior to the AGM in relation to this resolution are again shown on the screen. Taking into account the direct and proxy votes shown on the screen and the total number of shares being voted today, it appears resolution three will be passed. I would again like to acknowledge KPMG's service to Suncorp throughout their tenure as external auditor, and to welcome EY as auditor commencing from the end of today's AGM. The next two items of business are to consider the election and re-election of two members of your board.
First, as I mentioned earlier, Yen Saw seeks confirmation of her appointment to your board through seeking election by shareholders today. To add to my earlier comments, Yen brings to your board strong credentials in technology-led strategic transformation leadership and oversight that complement the existing skills of the board. She is currently a non-executive director of Manulife Singapore, and was previously a non-executive director on the QBE Asia Advisory Board, which oversees QBE's operations in Malaysia and Hong Kong. Yen's executive career experience includes serving as CEO of Tokio Marine Insurance in Malaysia and senior leadership roles with Aviva, Transamerica Life, Swiss Re, and Prudential. Your board is satisfied Yen is an independent non-executive director and fully supports her election today. I'd now like to introduce Yen to speak further about her experience and commitment to Suncorp in support of her election.
In the meantime, while she speaks, if you are here in Brisbane and would like to ask a question in relation to Yen's election, please start to move to the microphone now.
Thank you, Duncan, and good morning, shareholders. This is my first Suncorp AGM, and I am honored to be here seeking election to the Suncorp Group board. It is an exciting time to join Suncorp as a dedicated general insurance company that is transforming to meet the changing insurance needs of customers and communities across Australia and New Zealand. Since joining the board in June, my early observations are as follows. Firstly, I have been deeply impressed with the genuine commitment and progress made in automation across the company. It is clear to me that the experience for Suncorp customers, suppliers, and people has truly been the core, and I believe Suncorp is a leader in this space across the general insurance industry. Secondly, I have also been encouraged by the balanced approach Suncorp is taking to the adoption of AI.
The comprehensive AI risk lens, responsible and measured approach, and robust governance framework recognizes the importance of managing both the opportunities and risks that come with AI. Finally, it is evident to me that purpose runs deep through this organization, championed by CEO Steve Johnston. I have visited Suncorp's Disaster Management Center and seen firsthand the great level of care and support that Suncorp's teams have for their policyholders. It is, in fact, this sense of purpose, the very reason insurance exists, and the central role it plays in our society, that attracted me to the sector three decades ago. While a lot of time is often spent talking about profit, dividends, and margins, equally important for a business like Suncorp are the lives and livelihoods restored and the communities we help rebuild.
I am now based in Singapore, but I studied and commenced my career in Australia and maintain strong connections here. I believe my experience gained over more than 30 years in governance and executive leadership roles across insurance, reinsurance, and financial services, combined with my digital transformation across a variety of businesses and markets, positions me well to deliver value to Suncorp's board and strategy. The Australian and New Zealand insurance sector continues to have strong ties to the global economy, and I believe the global nature of my experience allows me to bring relevant and diverse perspectives. If elected, these comprehensive complementary skills and experience will assist the board in providing effective oversight of Suncorp's growth aspiration in a rapidly shifting landscape. I trust I will have your support for my nomination to the board. Thank you.
Thank you, Yen. Details of direct votes and proxies lodged prior to the AGM in relation to Yen's election now appear on the screen. Would any shareholder here in Brisbane who wishes to ask a question on this resolution now move to your nearest microphone if you haven't already? Microphone one.
Chairman, may I please reintroduce Mr. David Loosemore from the Australian Shareholders' Association.
Mr. Chairman, after today, only three of the nine directors will be women. ASA's objective is at least 40%. What's the board doing about this, and when do you expect to get there?
I expect to get there on the 2nd of November when Caroline Clarke joins the board, and we will then be 40% female. Thank you for the question, though. Any other questions in the room? No. Belinda, that appears to address all questions on Yen's election here in Brisbane. Do we have any questions on this resolution online or on the phone?
I can confirm that there are no online or phone questions for this item of business.
Thank you, Belinda. As that addresses all questions and comments on Yen's election, would you please now vote using the voting card in the online portal, the Vote+ app, or your paper voting card. Details of direct votes and proxies lodged prior to the AGM in relation to Yen's election are again shown on the screen. Taking into account the direct and proxy votes shown on the screen and the total number of shares being voted today, it appears this resolution will be passed. Congratulations, Yen. The final item of business is to consider the re-election of Elmer Funke-Kupper. As I mentioned earlier, Elmer brings significant financial services, transformation, and leadership experience to your board. More detail is set out in the notice of meeting. Elmer has made a highly valued contribution to your board since joining in 2020, including as current chair of the Board Risk Committee.
I and Elmer's fellow directors are fully supportive of him seeking re-election for his third and final term. I will now invite Elmer to speak about his experience and continued commitment to Suncorp. If you are here in Brisbane and would like to ask a question in relation to Elmer's re-election, please move to the microphone now.
Thank you, Chair, and good morning, fellow shareholders. I joined your board in January 2020, and today marks the end of my second term as a director. Suncorp today is a different company from the one I joined 6.5 years ago. Suncorp is now a leading pure play general insurance company in Australia and New Zealand. Your company has been performing well. It has produced attractive financial returns and increased its investment in its core insurance operations and technology. At the same time, it strengthens its resilience in the face of increasing natural hazards, and it is advocating for measures that reduce the risk of extreme weather for communities across our region. The transformation of Suncorp is a credit to your CEO, Steve Johnston, and the executive team. As a director, I have enjoyed supporting this process. My background is in financial services.
I've worked with Australian public companies for 30 years, as senior executive, CEO, and non-executive director. I currently serve on the Audit Committee, and I chair the Risk Committee. In the Risk Committee, I'm joined by several of my board colleagues who bring extensive industry knowledge, business experience, and governance skills. The directors who are not formally members of the Risk Committee regularly join the discussions. Managing risk is a core skill for an insurance business. It covers a wide range of areas, including the design and delivery of our insurance services, operations, technology, cybersecurity, and more recently, artificial intelligence. Managing risk well supports growth, investment, and innovation. As we heard earlier, reputational risk is a core part of what the Risk Committee focuses on as we continue our journey and become a leading insurer across Australia and New Zealand.
Your board is deeply engaged in the strategy and governance of your company. It does this in an atmosphere of direct and open communications amongst directors and with management. I've enjoyed working with my colleagues and the leadership team, and with your support, I look forward to continuing to serve on the Suncorp board. Thank you.
Thank you, Elmer. Details of direct votes and proxies lodged prior to the AGM in relation to Elmer's re-election now appear on the screen. Would any shareholder here in Brisbane who wishes to ask a question on this resolution now move to your nearest microphone if you haven't already? Microphone one.
Chairman, reintroducing Mr. David Loosemore from the Australian Shareholders' Association.
Mr. Kupper chairs the Risk Committee. Suncorp now runs more than 20 artificial intelligence projects, and you have mentioned a bit about how the board makes sure AI is used safely and fairly for customers. My specific question is, who checks this independently, safely, and fairly for customers? As chair of the Risk Committee, it would be interesting if Mr. Kupper answered the question.
I'll have an answer of the question, and might throw to Elmer in a second. Firstly, as I outlined earlier in one of my answers, we have, A, we have a really mature risk management framework that operates right across the organization, and we have embedded the way we think about AI in that risk management framework, linked to the appropriate policies around data management and so on and so forth, that are really important as part of AI. Each AI initiative is assessed by management against the established risk appetite, the data ethics commitments we have, model governance standards we have before deployment. Then the Board Risk Committee gets regular updates on that, and I'll maybe get Elmer to talk to that.
But in terms of who checks that, the first line, so the business is accountable, second line reviews that, and then we have also used third line, internal audit, to also review things. So we have the three lines of defense, which is well established, are working well in respect of AI as they are to everything else that we do across the organization and business. Elmer, was there anything you wanted to add?
Yeah. So, AI introduces new risks in the way the technology interacts with customers in our day-to-day processes. It amplifies risks that we already have today, particularly in cybersecurity. So AI is now a topic at pretty much every Risk Committee, and very regularly at the main board as well, where we have deep interactions with management on both of those topics, around cybersecurity as well as the performance of AI in the way we run our business. We also run simulations with management and the board on a regular basis to test if our cybersecurity controls are working in practice and if we can deal with events adequately. So this is one of the top three, four, five topics that sits in pretty much every Risk Committee.
Thank you. My understanding of that, in terms of my question of whether AI is used safely and fairly for customers, is that internal auditors check it, but you don't have a process of independent review?
Not from an outside party at this point in time. We listen very carefully to customer feedback. We actually don't use AI that much in customer interactions, and we give customers, for example, where we do use it, often have an off ramp, particularly with voice and things, where if they want to speak to a person, they can speak to a person. So we allow them to deal with that. As Elmer said, it's a continually fast-moving and developing sector, as our community expectations are also changing rapidly, and we'll just continue to monitor that very closely.
For two years, ASA has asked the board to show each director's skills, not just the board as a whole, in the director skills matrix. That would help shareholders vote on directors like Mr. Kupper today. Why won't the board do this?
We've had this conversation a few times. There are a couple of reasons. We have made some changes this year as a result of your feedback last year, and you'll notice in the notice of meeting, we've been very specific for the directors who are up for reelection on the skills they have, using the same words as in the skills matrix. If you want to do the reconciliation, you can do it there. The real reason is that the board is a collective, not a bunch of individuals, and the real objective is to make sure across the board we have the right breadth of skills in the right place, rather than in each individual director. We review it internally ourselves, but we don't think that's appropriate. Interestingly, the ASX principles in draft appear to be going in a different direction.
However, we are comfortable with where we sit in terms of the disclosure that we have.
I would like to just make the comment that, yes, I do believe you disclose good information on individual directors, and when you introduced them this morning, you did that, too. However, the resolution is not to elect the board as a collective. The resolution is to elect an individual director. That is why shareholders need that information on that individual director.
That is why we give it in the notice of meeting in some detail. Anyway, thank you. I am sure we will continue to discuss this in future years, as practice evolves as well. Belinda, I think that appears to address the questions on Mr. Elmer's reelection here in Brisbane. Do we have any online or on the phone?
Thank you, Chairman. I can confirm that there are no online or phone questions for this item of business.
Thank you. The phones and online have been very quiet today. As that addresses all questions and comments on Elmer's reelection, would you please now vote using the voting card in the online portal, the Vote+ app, or your paper voting card? Details of direct votes and proxies lodged prior to the AGM in relation to Elmer's reelection are again shown on the screen. Taking into account the direct and proxy votes shown on the screen, and the total number of shares being voted today, it appears this resolution will be passed. Congratulations, Elmer. I can now confirm that a total of 637 shareholders, proxy holders, and other attendees joined us throughout today's proceedings. Belinda, before we move on, do we have any relevant shareholder questions that have not been addressed during today's meeting?
Chairman, I can confirm that there are no further questions or comments to be addressed during this meeting.
Thank you, Belinda. Right answer. Thank you. That now concludes the business of the meeting. The poll will remain open for a further five minutes to enable you to complete and submit your online or paper voting card. If you are here in Brisbane and need assistance with your voting card, please see a team member at the back of the room. If you are online and need assistance, please contact the share registry online AGM support team on 1-800-990-363. Once the share registry has counted the votes cast during the meeting, the results of the poll will be announced via the ASX later today and will also be available on Suncorp's website. A replay, if you want to watch one, of today's AGM webcast will also be available on our website. As that now concludes the business of the meeting, I declare the meeting closed.
For those of you who have not already left the room but are here in the venue at the AGM, light refreshments are available in the foyer, and my board colleagues and executive leadership team will join you. I look forward to talking to you. To everyone participating, thank you for your attendance and interest today. Thank you.