Suncorp has reported an 83% slide in net profit after tax (NPAT) to $175 million, impacted by the $910 million non-cash loss on the sale of its Australian life insurance business; and has announced changes in its organisational structure to strengthen its digital foundations.
The Brisbane-based insurance giant said its FY19 results show that its core businesses remain resilient despite a year of higher natural-hazard costs and a significant rise in regulatory spending.
Cash earnings were up by 1.5% to $1.1 billion and group top-line growth was at 2.3%.
Suncorp also announced the creation of a new function, called customer and digital, to drive the insurer’s ongoing digital transformation, alongside expertise in technology, data, and labs.
The new unit will have responsibility for group, customer, and digital strategy, digital distribution, brand and marketing, and the enterprise portfolio management office. It will be led by 15-year Suncorp veteran Lisa Harrison.
Suncorp’s Australian contact centres, stores, and intermediary distribution teams will also be aligned to the group’s banking and wealth and insurance operations, to allow the company to adapt quicker to changing community expectations and to execute its priorities faster.
Pip Marlow, Suncorp CEO of customer marketplace, will depart the business by the end of August.
Suncorp announced a fully franked dividend of 44 cents per share and a capital return of 39 cents per share, to distribute the remaining surplus capital from the sale of its Australian life insurance business.
