Earthquake and floods batter Suncorp profits
Suncorp Group’s half-year results have been hit by the impact of natural disasters, with the group posting a net profit after tax (NPAT) of $223 million to 31 December, 2010 — $141 million less than the prior corresponding period.
The general insurance division suffered a fall in NPAT of $55 million on the prior corresponding period, down to $292 million; while Suncorp Life posted an after-tax profit of $61 million, down from $105 million last year.
Group chief executive Patrick Snowball said the fall in results was due to the impact of claims from the Queensland floods and the initial Christchurch earthquake.
The company is currently dealing with 40,000 claims as a result of the recent natural disasters, and has engaged additional resources to assist in the processing and assessment of claims and management of repair activity.
Suncorp stated its reinsurance program significantly limited the net financial costs associated with the recent natural disasters, and that due to their frequency, it had purchased additional reinsurance coverage for the full year.
The second quake to hit Christchurch has come at the time of results reporting and, as a result, no statements have been made about its impact on the business as yet.
Suncorp has also announced that its chairman, John Story, will retire at the company’s annual general meeting in October. He will be replaced by former Telstra chief executive and long-standing board member, Ziggy Switkowski.
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