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.

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Looking for a credit or charge card that’s built for your business? Try American Express
Partner Content
A good credit card should work for you, not against you, and let you and your business ...
American Express
Advertisement

Related Stories

‘One-eyed focus on profit’: The Star’s Queensland licence now also under threat

‘One-eyed focus on profit’: The Star’s Queensland licence now also under threat

The Star Entertainment Group (ASX: SGR) has been slapped with ...

ACCC cracks down on greenwashing, fake online reviews

ACCC cracks down on greenwashing, fake online reviews

The nation’s consumer watchdog is cracking down on businesses...

Going green: Investible backs eight climate tech companies through $30 million fund

Going green: Investible backs eight climate tech companies through $30 million fund

A cohort of eight innovative technology companies contributing to d...

Devine abandons Alba to upsize at Burleigh Heads with $400m Burly tower

Devine abandons Alba to upsize at Burleigh Heads with $400m Burly tower

In a sign that the heat has yet to come out of the Gold Coast prope...