Chairman’s letter

Since its beginnings in 1902, Suncorp has demonstrated its resilience by embracing change, leveraging technology and meeting evolving customer needs through offering relevant products and services.

Over time, our unique culture has led to Suncorp becoming one of Australia’s most trusted financial services companies.

The strength of our convictions and quality of our processes are regularly tested and reinforced as we respond to the key moments that matter in the lives of our customers.

We know that producing superior and sustainable returns requires us to continue to earn the trust and support of our customers and strike the right balance between our financial, social and environmental obligations.

To that end, in 2016-17, the CEO & Managing Director Michael Cameron and his Senior Leadership Team accelerated the transformation of Suncorp to pivot around customers. Our 13,400 people embraced the shift and sharpened their focus.

We are re-imagining the future of our organisation and driving change so we may continue to prosper in a dynamic and connected world.

Results

Overall, against a background of extensive organisational change, Suncorp delivered good results for the year with pleasing revenue growth and a solid net profit after tax of $1,075 million, an increase of 3.6 per cent from 2015-16.

The Board has declared a final ordinary dividend of 40 cents per share, bringing the total dividend for 2016-17 to 73 cents per share fully franked. This contributes to a total shareholder return of 28 per cent for the year and takes the total five-year return to 151 per cent, suggesting a return to sustainable long-term value creation.

Suncorp has further strengthened its capital position and our core operating entities have maintained their credit rating of A+ and A1 with a stable outlook.

Corporate responsibility

Through our new Corporate Responsibility Framework, we are improving our business practices to actively manage the material environmental, social and governance risks and opportunities. We aim to build trust by communicating honestly, being transparent and offering financial products responsibly, as well as supporting our people and their communities.

It is pleasing to report that Suncorp has gender balance across all leadership roles, with 49 per cent female and 51 per cent male. The direct reports to the CEO & Managing Director are distributed 50 per cent female and 50 per cent male. By walking the talk, we are paving the way for a more inclusive workplace and a culture that values diversity and flexibility, and which rewards the right behaviour and performance outcomes.

In 2016-17 we invested over $9.8 million in partnerships with community organisations to have a positive impact on the issues that are important to our business.

We continue to reduce our environmental footprint and have decreased our greenhouse gas emissions by a further 11 per cent.

Conclusion

This year we farewelled Geoff Ricketts from the Suncorp Group Board. I would like to thank Geoff for 10 years of dedicated service to Suncorp that helped shape the organisation we are today. Geoff is Auckland-based and continues to serve as the Chairman of Vero Insurance New Zealand Limited and Asteron Life Limited. I would also like to acknowledge the contribution of fellow Board directors William Bartlett and Ewoud Kulk who will retire at this year’s AGM. Both have been long serving members since 2003 and 2007 respectively and I thank them for their dedication and service.

This year we welcomed Simon Machell to the Board and he is seeking your support at the AGM. Simon brings more than 30 years’ experience in the insurance industry throughout Europe and Asia.

I would like to thank my fellow Board members for their support, expertise and many insights, the CEO & Managing Director for his leadership and partnership, the executive team and all of our people for their hard work and dedication.

And importantly, our loyal customers and shareholders — thank you for the trust you place in us as we continue on this journey to create shared value for all.