Suncorp says it will increase its premiums and claims allowance to deal with future natural disasters as it warns of a challenging outlook.

Past premium hikes, including a 16 per cent jump in fees for home insurance, helped the insurer post a 74 per cent surge in half-year net profit to $389 million for the six months to the end of December, despite a record number of disaster claims.

Asset sales and an improvement in its banking division also helped the result.

Suncorp chief executive Patrick Snowball said global uncertainty and a subdued domestic economy were likely to affect the business this year.

"Our group cost base is still too high and complex and we've begun to address this through simplification, decommissioning legacy systems and by partnering with third parties where it makes sense to do so," Mr Snowball said.

Earlier this year the company said the $149 million in claims it had received from the Christmas Day hailstorms in Melbourne would exceed its allowance for natural disaster claims.

Chief financial officer John Nesbitt said the insurer would have to increase this year's natural disaster claims allowance of $500 million for next year.

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"We obviously can't settle on the extent of this increase until we understand the shape of the reinsurance program, but we have already made targeted premium increases," Mr Nesbitt said.

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