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Suncorp Group has fallen under the spotlight; after the insurance giant released its full year report, the share price dropped 93 cents, or 6%, to $13.63.
Despite an increase in profit from the previous year, analysts said the financial services group missed expectations.
Analyst Sean O'Neill said that the insurance division of Suncorp needs to lift its game; the banking part of the company already generates a greater than 12% return on equity.
O’Neill said he wasn’t optimistic, as he believes the insurance industry to remain highly competitive.
“My perception is that it’s also hard for a major general insurer like Suncorp to focus on writing more profitable insurance, since by definition they cover a wide range of customers and situations,” he said.
With the company to invest an extra $100 million in its goal of developing a "marketplace,” City analyst Nigel Pittaway said that a result at about 4% below market expectations seemed relatively soft.
"We are also not sure the market will like the extra $100m investment in marketplace. We believe the stock is likely to weaken," Pittaway told The Sydney Morning Herald.
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