Suncorp defies tough global economy and natural catastrophes to notch up big bounce in profits
Ex-Aviva UK chief executive Patrick Snowball was on a high today after the Australian bancassurance firm he now runs, Suncorp, reported a big jump in profits.
Net profit after tax jumped to $389m (£248m) for the half year to 31 December 2011, up from $223m in the prior corresponding period.
Snowball said: “I’m proud of what Suncorp has achieved over the last six months and am confident the transformation of our group is on track.”
General Insurance recorded an after tax profit of $162m for the half year to 31 December 2011, with the result impacted by natural hazard claims that were $149m above allowances as well as falling interest rates and increased reinsurance costs.
Australian short-tail classes grew with home up 15.9% and motor up 1.7%. Premium rates in these classes increased following ongoing adverse natural hazard experience and significantly higher reinsurance costs.
Commercial insurance gross written premium increased 9.3%. Higher reinsurance costs saw price increases for most commercial lines although the small to medium enterprise market remained challenging due to competition and the economic environment.
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