Suncorp has announced a net profit after tax (NPAT) of $1,059 million, a 34 per cent increase on the first half of 2018.
Total dividend to investors in FY18 is up 11 per cent on the prior year. Suncorp said the result was driven by stronger second half performance, reflecting the early benefits of the strategy.
The firm’s Australian insurance division reported a net profit after tax of $739m – a 2.2 per cent increase on last year and a 79.9 per cent increase compared to the first half of the financial year.
CFO Steve Johnson said: "Motor claims has been the main focus of the FY18 program. Here we are simplifying claims experience for our customers and deepening relationships with key suppliers, as well as driving more volume through SMART and our fixed cost repairer network.
Key numbers
- Insurance (Australia) delivered NPAT of $739 million. Motor and Home portfolios have performed strongly with GWP growth of 4.7 per cent, and claims performance at better than industry levels.
- Banking & Wealth delivered NPAT of $389 million, with above system growth in lending and deposits. A strong profit increase in Wealth was driven by improved investment income and reduced project costs.
- New Zealand achieved NPAT of A$135 million, reflecting premium growth, unit growth, good claims management and expense control.
Sale of Australian Life insurance business
Following the completion of a strategic review, Suncorp has entered into a non-binding Heads of Agreement with TAL Dai-ichi Life Australia to sell the Australian Life insurance business.
What Suncorp said
Suncorp CEO & Managing Director Michael Cameron (pictured) said that the strong performance in the second half is driving momentum for FY19.
"Six months ago, we committed to a stronger second half, as the benefits of our strategy begin to flow through, and I’m pleased to report a 34 per cent uplift on NPAT on the first half. This result is a direct outcome of the repositioning programs we have implemented over the past two years. We are now beginning to see momentum, to deliver a further uplift in shareholder returns in FY19," he said.