Suncorp profits rise despite year of disasters
In the face of Australia's worst year for natural hazard events, Suncorp Group Limited, has posted a net profit after tax (NPAT) of $1133 million for the 2015 financial year.
Suncorp chief executive, Patrick Snowball, announced the group's NPAT had jumped by $403 million over the 12 months to 30 June 2015, in a statement to the Australian Securities Exchange (ASX).
The group's full year results revealed, an NPAT for Suncorp Life of $125 million — up 39.5 per cent — with Suncorp Bank posting an NPAT of $354 million — up 55.3 per cent.
Snowball said the result was achieved despite five major weather events in Queensland and NSW, which combined with smaller attrition events, had led to claims of more than $1 billion.
"I'm proud that Suncorp has been able to increase profit and dividend in a year of terrible weather events," he said.
"This demonstrates that Suncorp's diversification across general insurance, banking and life is delivering a resilient earnings profile."
Suncorp's general insurance business recorded an NPAT of $756 million for the year, despite the impact of more than $1 billion worth of claims.
The company also revealed that a forecast maximum impact relating to recoveries under the 2011 catastrophe reinsurance program, had been reduced from $118 million after tax, as reported in the group's half-year results announcement in February, to less than $20 million.
AUTHOR
Nicholas O'Donoghue
Recommended for you
The Federal Court has dismissed a conflicted remuneration case brought by ASIC against the director of life insurance distributor Freedom Group, where Bali holidays and Vespa purchases were among sales incentives.
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
