Suncorp announces simplification push
Queensland-based Suncorp has announced a $275 million simplification program aimed at driving greater efficiencies in the business and focusing employees on high-value activities.
The program, announced by Suncorp chief executive Patrick Snowball, will cost $275 million but is forecast to deliver the insurance and financial services group annualised benefits of $200 million from the 2016 financial year.
Outlining the program to an Investor Day event, Snowball said it would see an organisational redesign, together with the decommissioning of 14 legacy policy systems and a consolidation of the company's general insurance licences.
As well, he said there would be a staged investment to improve Suncorp's core banking platform and a focusing of employees on high-value activities.
Snowball said Suncorp's businesses were performing strongly and were broadly on track to deliver the growth targets outlined by the company in May 2010.
He said the underlying general insurance business had improved ahead of expectation in the second half and would now be targeting an underlying margin of 12 per cent for the full year.
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