Suncorp has announced that group net profit after tax has risen by 3.6% as the insurance division of the business saw a 30% profit increase.
The major firm announced that the Australian insurance division of the firm saw net profit after tax hit $723m, up 30% from $558m last year, with gross written premium up 3.9%.
The general insurance underlying insurance trading ratio (ITR) was 11.5% compared with 10.6% in FY16.
However, the commercial insurance business of the firm saw GWP reduced by 2.2% as pricing increases and strong SME retention rates were offset by lower retention in the corporate segment.
Michael Cameron, Suncorp CEP and managing director, said that the result reflects a disciplined management of margin and balance between reducing overheads and investing in future growth.
“Our focus on elevating the customer has resulted in an increase in total customers, driven by improved volumes and better retention,” Cameron said.
“During FY17 we have turned the outflows around growing customer numbers by 147,000 organically, with a further 252,000 acquired through the entry into the South Australian CTP scheme.”
The Australian insurance business saw profits rise thanks to strong top-line growth and lower claims costs, the firm said.
Strong growth in New South Wales CTP, alongside premium increases in home and motor products and entry into the South Australian CTP market helped offset reduced GWP in commercial.
Reserve releases of $301m remain well above long-term expectations of 1.5% of group net earned premium.
The firm announced that it will keep similar reinsurance cover to FY16 when additional aggregate cover was purchased.
The new cover provides $300m of cover once the retained portion of natural hazard events greater than $10m exceeds a total of $475m.
The firm will invest a further $100m after tax in its One Suncorp strategy as it has commenced a group-wide business improvement program.
The investment will bring together the digital experience into a single platform for the entire Suncorp network through the Suncorp Marketplace app and will see the company complete its brand refresh.
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