Suncorp’s life changes help first half result
Suncorp's moves around its life insurance products has helped drive the Queensland-based company to a net profit after tax (NPAT) of $530 million for the six months to 31 December 2015, down from the $631 million reported for the first half of 2015.
The company told the Australian Securities Exchange (ASX) that profit after tax from business lines was $544 million.
Commenting on the result, Suncorp chairman, Ziggy Switkowski, said the half year net profit after tax of $530 million demonstrated the benefits of a financial services conglomerate with the Banking and Life operations delivering improved underlying profits at a time when General Insurance earnings had been impacted by external headwinds and operational issues.
The company's ASX announcement said Suncorp Life's net profit after tax for the half year was $53 million with the underlying profit increasing over 10 per cent to $58 million.
It said the profit after tax was impacted by investment market volatility with actual returns being lower than longer-term assumptions.
"Life's underlying profit has stabilised following the revision of key assumptions in 2014," the announcement said. "Overall claims and lapse experience was $8 million favourable. Life's total in-force annual premiums are up 5.2 per cent reflecting Life's continued focus on retention and value over volume, ensuring new business is written on a more sustainable footing."
Recommended for you
Women are expected to inherit US$124 trillion through the intergenerational wealth transfer, but Capital Group has found they are twice as likely to rely on social media for advice over a financial adviser.
Challenger Investment Management has raised $350 million during the offer period for its new ASX-listed investment structure.
A week after Lonsec downgraded multiple funds from Metrics Credit Partners, rival research house Zenith Investment Partners has opted to retain its ratings for the same funds.
Strong adviser engagement has helped Praemium reach $1 billion in inflows on its Spectrum offering, with a deal with Western Australian wealth firm Euroz Hartleys expected to add as much as $2 billion.
