News: SUN UPDATE 1-Suncorp's HY cash earnings lifted by margin growth and strong investment returns

(Adds details on results, outlook)

Feb 8 (Reuters) - Australia's Suncorp Group Ltd's (SUN) half-year cash earnings rose 63% from a year ago, but came in below expectations, as strong underlying margins, positive investment returns, and release of provision boosted top-line growth.

However, Suncorp said it received around 53,000 claims related to weather events during the six-month period, leading the group to exceed its natural hazard allowance by A$99 million ($68.83 million).

The country's second-biggest insurer by market value posted cash earnings of A$588 million ($408.37 million) for the period ended December, compared with A$361 million a year ago. That missed an UBS estimate of A$674 million.

Suncorp, which announced the sale of its banking arm to lender Australia and New Zealand Banking Group (ANZ) last year, declared an interim dividend of 33 Australian cents per share, up from 23 Australian cents per share last year.

The insurer, however, said it may face headwinds in the medium term from natural hazards and reinsurance costs. ($1 = 1.4399 Australian dollars)