Suncorp life business takes a hit
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Suncorp’s life insurance business took a hit in the half year to December 31, 2009, with the Queensland-based bank reporting a 23 per cent fall in net profit for that business arm.
The group’s net profit after tax and minority interest for its life insurance division was $105 million, with the group attributing the 23 per cent fall compared with the previous corresponding period to “pressures on lapse rates and the strategic decision the business took last financial year to de-risk the participating book”.
Suncorp group chief executive Patrick Snowball said there was “an emerging niche for the life business in a consolidating market”.
Snowball said the company was focused on growing distribution and reach, improving customer retention and continuing its program of cost reduction. In its interim results, Suncorp pointed to 9 per cent growth in its external financial adviser distribution channel for the first half of this financial year, which it said was in addition to 20 per cent growth in the previous two years.
Suncorp’s overall net profit after tax and abnormal items was $364 million for the half year, up 41 per cent on the previous corresponding period.
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