PROFIT UP 160 PER CENT AS SUNCORP RECOVERS FROM 2011 DISASTERS

PROFIT UP 160 PER CENT AS SUNCORP RECOVERS FROM 2011 DISASTERS

SUNCORP Group (SUN) has bounced back from the 2011 summer of natural disasters.

Queensland’s largest financial institution posted a 160 per cent increase in net profit after tax to $724 million for the 2011-12 financial year.

General insurance, where many premiums have increased since the 2011 payouts, was a stand-out performer, recording a 125.7 per cent rise in after tax profit to $493 million.

Natural calamities had increased reinsurance costs and affected the headline result, but underlying performance was still positive across the business.

All subsidiaries achieved top-line growth of between 8 and 10 per cent and improved or at least maintained profit margins.

CEO Patrick Snowball (pictured) credited the group’s ‘one company, many brands’ business-model for achieving the encouraging result. He predicts the model will deliver $200 million in annualised benefits by the 2016 financial year.

“As a result, we enter the current financial year in a position that many companies would envy – with improved profits, stable or growing margins and reduced costs,” he says.

“The non-operating holding company structure has improved capital transparency, we have disposed of non-essential operations and the non-core banking portfolio has been reduced by more than 75 per cent.”

SUN shares were steady at $8.82 per unit.

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