Suncorp Group announces profit despite natural disasters
Suncorp Group has announced a $389 million net profit after tax (NPAT) for the six months to 31 December 2011, with general insurance contributing $162 million despite the impact of natural disasters over the Christmas period.
The company's overall NPAT was up from $223 million in the prior corresponding period.
However, the Christchurch earthquake on 23 December 2011 and the Melbourne hailstorm on Christmas day meant that natural hazard claims were $149 million above allowances.
Suncorp Group chief executive Patrick Snowball said the performance of the group amid ongoing "weather events" and natural disasters demonstrated the "resilience" of the company.
"Although external challenges mean that our first half profit is not what we, and our shareholders, know the business is capable of, I'm proud of what Suncorp has achieved over the last six months, and am confident the transformation of the Group is on track," Snowball said.
The NPAT of Suncorp Bank improved to $102 million for the six months to 31 December 2011. The Core Bank NPAT was $156 million, largely due positive broker flows.
However, the non-core portfolio took a $54 million loss, reflecting "lower impairment losses" and the $34.5 pre-tax profit on the sale of the Polaris data centre.
Suncorp Life reported a NPAT of $133 million for the half, with new individual life risk business up 11 per cent from the prior corresponding period to $51 million.
The company has announced a fully franked interim dividend of 20 cents for 2012.
Suncorp group chairman Ziggy Switkowski said the company's capital position remained healthy, with more than $1.18 billion identified as surplus to the group's internal targets.
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