Australian general insurer Suncorp Group reaffirmed its key 2023 targets despite inflation and increasing insurance costs. It also reported strong premium growth across its New Zealand insurance, consumer, and commercial segments.
Suncorp’s key financial year 2023 targets included an underlying insurance trading ratio between 10% and 12 % and a ban cost-to-income ratio of approximately 50%.
“The foundations we have built over the past three years mean we are well-positioned to create long-term shareholder value and meet the evolving needs of our customers and other stakeholders,” Suncorp Group CEO Steve Johnston said. “A key focus of our future strategy is to ensure we can assess and manage the risks associated with a changing climate. We also want to work with all levels of government to create more resilient communities in Australia and New Zealand.”
Suncorp reported it enjoyed leading positions in general insurance in Australia and New Zealand. Its insurance strategy was focused on delivering value for stakeholders by growing ahead of market in New Zealand, strengthening its market-leading position in motor, developing a more sustainable and resilient home portfolio, and increasing its market share in commercial.
“Suncorp’s insurance business is an attractive investment opportunity grounded in our purpose and focused on delivering value for all stakeholders,” said Johnston. “We have developed deep expertise in climate-modelling that informs our portfolio composition, risk selection, pricing, and claims, as well as our natural hazard allowance and reinsurance program. We will continue to evolve our go-forward strategy, but it will be built on the strong foundations that we have laid through digitisation, automation, and the investments we have made in our brands, systems, and importantly, our people.”
Suncorp bank’s net interest margin was above its target range. Johnston affirmed that its sale process to the Australia and New Zealand Banking Group (ANZ) was on track and expected its completion in the second half of 2023, having had “constructive dialogue” with regulators and government offices to get the necessary approvals on the transaction.
“The strategic rationale for the sale of the bank to ANZ is clear – a simplified Suncorp will be a leading Trans-Tasman insurer and the cornerstone of a viable insurance industry here and in New Zealand,” Johnston said. “At the same time, Suncorp Bank under ANZ ownership will continue to grow, and our bank customers will benefit from a broader range of products and services.”
