Suncorp exceeds nat cat budget in 6 months

Australia’s insurer Suncorp has reported natural hazards of A$395 million ($313.9 million) between July and December 2016, which is A$65 million above the allowance for the period, driven primarily by the Victorian hail storm.

Reported net profit after tax (NPAT) was $452 million for the six months to 31 December 2017, down 15.8 per cent on the prior corresponding period. The deterioration was due to the impact of natural hazards and timing of investments, including the Business Improvement Program and increased regulatory costs, the company said.

The group top line grew 2.5 per cent over the period, driven by good momentum across home and motor insurance and banking.

Suncorp is guiding for a stronger outlook for the six months ending June 2018, with favourable operating conditions expected to continue and the strategic programmes to support growth and deliver cost efficiencies.

“Our work over the past 18 months on driving efficiencies in our claims processes, improvements in our customer experience, a hardening insurance market and our strategic investment programmes, position the business well for the second half,” chairman Ziggy Switkowski noted.

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