In October 2015, the Board welcomed Michael Cameron as Suncorp’s new CEO & Managing Director.
This appointment was followed by a significant organisational transformation which included the launch of a new purpose to Create a better today for all of our stakeholders, and an operating model which emphasised that creating value for customers would underpin future profitability and growth.
To that end, Suncorp continues to be a well-capitalised, low-risk, financial services conglomerate, with a diversified earnings base that provides a strong foundation to create and sustain value for our customers, shareholders, employees and communities.
General Insurance, Life Insurance and Banking define our portfolio of financial services, our people understand their important role in helping customers during life’s challenges, critical decisions and dramas, and our proud legacy sees us as close to, and dependent upon, the communities we serve in Australia and New Zealand.
The past financial year demonstrates that our businesses continue to generate strong profitability in an environment of low economic growth and unpredictable weather, and investment markets. The Group delivered a solid result, with a full year net profit after tax of $1,038 million.
The underlying profit after tax for Suncorp’s banking business improved as a result of prudent growth and improved risk management. Suncorp Life also saw underlying profits increase and is well positioned for growth as the industry undertakes reform. The General Insurance business experienced lower investment returns and higher claims costs, but was able to partially offset the financial impact of these issues with reserve releases arising from low inflation. The higher claims costs are being addressed, resulting in our insurance margins improving over the second half of the year.
In New Zealand, both the general and life insurance businesses have increased market share as a result of ongoing product innovation.