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Suncorp New Zealand announces 2019 half year results

14 February 2019

Suncorp Group Limited today announced net profit after tax (NPAT) of A $250 million for the six months to 31 December 2018. 

The New Zealand business achieved NPAT of NZ $120 million, up 79.1% on the prior corresponding period. 

Suncorp New Zealand CEO, Paul Smeaton, said the result reflected strong top-line growth, the absence of any major natural hazard events during the half year, and strong ongoing business performance. 

“We continue to make good progress on our strategy to connect New Zealanders to products, services and experiences that enhance and protect their financial wellbeing,” said Mr Smeaton. 

Suncorp New Zealand CEO Paul Smeaton

General Insurance result

The general insurance business, which includes Vero Insurance and AA Insurance (a joint venture with the New Zealand Automobile Association) delivered profit after tax of NZ $103 million, up 106% on the prior corresponding period. Strong top-line growth and favourable natural hazard and working claims experience contributed to the improved performance.

Mr Smeaton said that while the benign weather experience contributed to a strong first half result, 2018 was the second most expensive year for severe weather since 1969, with insurers spending NZ $226 million in settling claims, according to data from the Insurance Council of New Zealand. 

“While this is a pleasing result, the reality is that natural hazard events could hit us at any time. We are well prepared to be there for our customers.”

Life Insurance result 

The life insurance business, which includes Asteron Life and AA Life (a joint venture with the New Zealand Automobile Association) delivered profit after tax of NZ $17 million, in line with the prior corresponding period. In-force premium grew by 4%. 

Mr Smeaton said Suncorp was working closely with the New Zealand Government and regulators on the Conduct and Culture review of the life insurance industry and that Suncorp welcomed any measures that deliver improved outcomes for customers.

Outlook 

Mr Smeaton said Suncorp remains focused on building a more resilient business to meet a greater number of customer and business partner needs – across its direct, intermediated and corporate partner channels. 

“We are well placed to build on a strong first half result and remain committed to being there for our customers in the moments that matter.”

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Media enquiries: Bridget Catchpole +64 27 215 1292

The information in this article has been compiled from various sources and is intended to be factual information only. It is not personal advice and any description of an insurance product or service is not a complete description of all the terms and conditions applicable to the particular insurance product or service. You should consult a qualified adviser for advice on whether the information in this article is suitable for your personal situation and needs. While we take reasonable steps to ensure that the information contained in this article is accurate and up-to-date, it is subject to change without notice. Suncorp New Zealand and its related companies does/do not accept any responsibility or liability in connection with your use of or reliance on this article.