Suncorp Group's 1H profit result fell -2% short of the consensus estimate while the 34cps interim dividend was in line with expectation.

While the bank result was weak, Morgans notes the general insurance result was broadly sound, and is suggestive of an improving trajectory in the 2H and for FY25.

Management increased gross written premium (GWP) growth guidance for General Insurance to "low-to-mid" teens from around 10%. The underlying insurance margin (UIM) is expected to be at the mid-point of the target range of 10%-12%.

The Add rating is maintained and the target rises to $16.88 from $16.42 despite lower EPS forecasts due to a valuation roll-forward.

Sector: Insurance.

Target price is $16.88.Current Price is $15.13. Difference: $1.75 - (brackets indicate current price is over target). If SUN meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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