Suncorp's Insurance (Australia) delivered profit after tax of $755 million, up 333.9% compared to $174 million last financial year reflecting continued momentum in revenue growth, a reduction in operating expenses and a significant turnaround in investment income.
Motor GWP grew 13.8%, reflecting Average Written Premium (AWP) growth driven by pricing for claims inflation. Unit growth of 2.4% was achieved in the Motor portfolio.
The brand achieved its aim of increasing digital transactions for mass brands across Home, Motor and CTP products. The result was 68% of all sales and 44% of all service transactions, up from 49% and 29% respectively at the start of the plan period. The number of unique digital users grew to 5 million in FY23. In claims, enhancements to Suncorp’s online lodgement process has also resulted in 50% of Motor and Home claims now being lodged digitally.
CEO Steve Johnston said the Group had delivered a strong set of results, demonstrating the progress made over the past three years to successfully execute the strategic initiatives under the FY23 plan while facing a challenging operating environment.
“Our dedicated focus on digitising and automating, reinvigorating our leading brands, becoming more efficient and improving how we serve our customers, has helped us to deliver strong top-line growth across our businesses and improve underlying margins," he said.
Overall group net profit after tax increased 68.6% to $1.14 billion from a year earlier and cash earnings surged 86.3% to $1.25 billion.
Organisational changes
Suncorp has also announced organisational changes to its operating model in order ‘to embed a customer-centric focus' and improve efficiency. Suncorp will be organised around three core insurance functions : consumer, commercial & personal injury and New Zealand.
A new consumer insurance function will bring together responsibility for underwriting, pricing, product, distribution and claims for home and motor portfolios. The business will be led by Lisa Harrison, currently CEO insurance product portfolio.