Suncorp Metway, already grappling with a six-month loss and plans to merge the former AMP General/GIO operations into its organisation, won’t have taken much comfort from the AMP results announcement last week. Having agreed to pay $1.4 billion for the general business, CEO Steve Jones would not have been impressed with the general insurance operations results.

The half-year underwriting profit was $12 million on an after-tax profit of $32 million. That’s still a lot better than the $2 million loss Suncorp Metway recorded, but a long way south of the $29 million underwriting profit and $49 million after-tax profit AMP recorded in the previous six months.

The result included a “non-recurring charge” of $25 million. More positively, gross written premiums rose to $776 million from $736 million in the previous half-year.

Suncorp Metway made an $80 million profit in the previous half-year. But while its latest result may concern analysts, they should take some comfort from the fact that it’s in AMP’s interests to see the merger completed successfully. After all, Suncorp has a deal to provide AMP with its general insurance needs, and AMP also has $400 million in securities wrapped up in the Queensland allfinanz company.