Suncorp Group can expect “continued solid earnings” from its property and casualty (P&C) business, S&P says, as it affirmed its credit ratings of the Queensland-based financial services provider.

Its long-term issuer credit rating stays at A, and long-term insurer financial strength at A+.

AAI, the group’s P&C entity, has a credit rating of A+.

“Suncorp holds very strong market positions in the Australian and New Zealand property and casualty segments, and its earnings benefit from the diversity provided by its bank and life insurance operations,” the ratings agency says.

“The stable outlook on Suncorp and its core operating subsidiaries reflects our expectations of a continued solid earnings profile across the group's P&C businesses.”

S&P expects the business to strengthen its profitability this financial year through disciplined underwriting, enhanced claims practices and reinsurance protection.

This month Suncorp reported its Australian insurance earnings fell 13.7% in the last financial year while its New Zealand results surged on premium gains and benign weather.

Higher natural hazard costs and weaker investment markets lowered the Australian arm’s net profit to $588 million from $681 million in 2017/18.

The group’s overall net profit fell to $175 million, down from $1.06 billion a year earlier, including a $910 million non-cash loss on the sale of the life business.