Suncorp’s insurance portfolio is well positioned to grow and continue to deliver market-leading products and services to create value for its customers, said Suncorp Insurance CEO Anthony Day.
Day spoke following the release of Suncorp Group’s full year results for 2016, which reported a group net profit after tax of $1,038 million, compared with $1,133 million in FY15.
“We have a strategy for all our portfolios to deliver profitable growth,” Day said.
“Our diversified insurance portfolio will continue to evolve under the revised Suncorp strategy and operating model − allowing us to deliver on key promises, including a claims-led recovery of underlying margin, and margin-led growth in the profitable segments of the market.”
Suncorp’s Commercial insurance has performed well amidst a tough environment.
“Commercial Insurance business is maintaining strong performance in a competitive market, despite natural hazards and low investment yields,” Day said.
“We are seeing signs that premium rates are stabilising across commercial lines and we expect market conditions to continue to improve.”
Compulsory Third Party (CTP) has also maintained a strong performance.
“We achieved strong growth in the NSW and ACT markets. We have also entered the SA market, which presents a great opportunity for us to further cement our position as Australia’s largest personal injury insurer,” Day said.
Consumer insurance (home and motor) has also shown a stable performance.
“In our motor business, single digit price increases have been achieved while retention rates have remained stable,” Day said.
“Growth in our specialised brands has again been strong.”
“A focus on customer retention and enhancing our direct distribution channels has delivered mid-single digit GWP growth in home insurance.”
Life’s underlying profit has improved by 10 per cent compared to the previous year, supported by positive lapse and claims experience.
“Life continues to drive sustainable growth across the portfolio with a focus on value over volume,” Day said.
“Suncorp Life exited the self-employed, aligned advisor channel to simplify the strategy and distribution strategy during the year. The adviser channel is, however, still a key part of the strategy as it delivers more than 50% of new business.”
Day said they will continue to build on existing relationships, while developing new advisor relationships.
“Suncorp’s new operating model aligns the Life portfolio to the delivery of the customer strategy by creating an improved customer-focused platform. This will enable us to create greater value for our customers and advisers, which will support growth and sustainable returns.”
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