Suncorp says general insurance premiums are set to rise this financial year by mid-to-high single-digit amounts, as it faces higher repair costs from houses damaged by ageing water pipes even as global reinsurance rates moderate.

Profits at the Queensland insurer – which has been freed from running its bank after it was offloaded to ANZ in July – bounced back after a tough three years, where it has been pressured by natural disasters, inflation and higher global reinsurance premiums.