Suncorp New Zealand announces half year results 2018
15 February 2018
Suncorp Group Limited (Suncorp) today announced net profit after tax of A$452 million for the six months to 31 December 2017.
The New Zealand business achieved a profit after tax of $67 million, an improvement of 81 per cent on the prior corresponding period.
Suncorp New Zealand CEO Paul Smeaton said the improved result was due to a number of factors including strong growth and the absence of any major disasters which impacted the prior year’s earthquake-affected result.
The general insurance business, which includes Vero Insurance and AA Insurance (a joint venture with the New Zealand Automobile Association) delivered profit after tax of $50 million, with premium increases, strong unit growth, and strong claims management offsetting the impacts of increased reinsurance premiums and claims cost inflation, particularly in the motor insurance business.
The life insurance business, which includes Asteron Life and AA Life (a joint venture with the New Zealand Automobile Association) delivered profit after tax of $17 million, down $1 million on the prior corresponding period, due to short term volatility in experience with prior year favourable experience reversing over the half. In-force premium grew 5%, driven by new business and policy retention.
Paul Smeaton said Suncorp New Zealand continued to focus on building a more resilient business to meet the needs of its customers and business partners.
“We expect the business to continue to grow, through new business and the pricing responses we have had to implement to manage increased claims costs and reinsurance pricing increases.
“At the same time, we are focused on managing our operating expenses and strong claims management, through initiatives such as SMART vehicle repair centres.
Mr Smeaton said Suncorp New Zealand was well positioned to deliver a strong second half, and deliver on its strategy, including initiatives to further digitise the business.
Media enquiries: Kimberley Cameron +64 27 208 1268
The information in this article has been compiled from various sources and is intended to be factual information only. It is not personal advice and any description of an insurance product or service is not a complete description of all the terms and conditions applicable to the particular insurance product or service. You should consult a qualified adviser for advice on whether the information in this article is suitable for your personal situation and needs. While we take reasonable steps to ensure that the information contained in this article is accurate and up-to-date, it is subject to change without notice. Suncorp New Zealand and its related companies does/do not accept any responsibility or liability in connection with your use of or reliance on this article.
