This morning the Suncorp Group Ltd (ASX: SUN) share price climbed 2% to hit a new 52-week high of $14.45.
This latest gain brings the leading insurance company's six-month return to a whopping 21%. Is it too late to invest?
Whilst it is certainly not the bargain buy it was six months ago, I still believe Suncorp is an attractive option for investors willing to make a buy and hold investment.
Especially as at 17x trailing earnings Suncorp is still cheaper than rivals Insurance Australia Group Ltd (ASX: IAG) and QBE Insurance Group Ltd (ASX: QBE).
Furthermore, it has the biggest fully franked yield amongst its peers. Currently Suncorp's shares provide a trailing fully franked 4.9% dividend.
Pleasingly, thanks to its One Suncorp strategy I believe the insurer is in a position to deliver sufficient earnings growth to keep this dividend growing in the future.
The One Suncorp strategy includes an integrated, customer-centric model which enables customers to choose from its wide-range of products provided across all of its brands through its online marketplace.
Management expects this to not only boost sales, but also customer satisfaction. I've been very pleased with the early progress of the strategy and the impact on its underlying insurance trading ratio (ITR).
Suncorp's ITR rose from 10.1% to 11% during the first-half of FY 2017. But the company isn't resting on its laurels and is working hard to increase it to 12%.
Overall, although Suncorp has hit a new 52-week high today, I believe there is enough in the tank to keep it climbing higher. Especially as certain items in the Budget look likely to benefit its regional banking business at the expense of Westpac Banking Corp (ASX: WBC) and the rest of the big four banks.
