Suncorp considers sale of life business
Suncorp Group has flagged a possible sale of its life insurance business.
The company signalled the possibility in its half-year results announced to the Australian Securities Exchange.
The Group announced an indifferent half year profit result, with net profit after tax down 15.8 per cent to $452 million for the six months ended 31 December, last year.
It said the result was impacted by natural hazards and timing of investments, including the Business Improvement Program and increased regulatory costs.
However, the company has told the Australian Securities Exchange it expects a strong full-year result.
The board has determined an interim dividend of 33 cents per share.
On a divisional basis, the company’s life insurance business provided some good news with underlying profit up 56 per cent to $39 million which the company said reflected the benefits of repricing and an ongoing focus on its optimisation process.
However, Suncorp chief executive, Michael Cameron said that while the Australian Life Insurance business was progressing well, the company continued to explore alternatives “which include a partnership, sale or reinsurance”.
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