An increase in the cost of Suncorp’s working claims at the end of last financial year was “disappointing”, CEO Michael Cameron told the annual general meeting last Thursday.

“Fixing this remains my No.1 priority,” he said. “The initiatives we have put in place are delivering improved operational metrics, which are now translating into lower claims costs.”

Mr Cameron says a new operating model, announced in February, will allow the company to better build on its large customer base.

“Our structure has made it difficult for us to view customers across brands and products. As a result, the value we deliver tends to be price-driven, and this is not sustainable.”

Costs also remain a focus across the wider business, which includes banking and life cover as well as general insurance.

“It is important to be disciplined and even a little frugal with spending shareholders’ money,” Mr Cameron said.

“We will continue to keep costs flat, notwithstanding business growth, the need to reinvest and inflation.”

Chairman Ziggy Switkowski told the Brisbane meeting that forecast revenue growth is likely to be lower than over the past decade due to weaker economic activity, low inflation and greater competition.

“Improving margins, returns and dividends will require ongoing attention to better processes, higher productivity and reduced customer churn – key strategic priorities for Suncorp,” he said.

Director Geoff Ricketts retired from the board at the end of the meeting, but will continue to chair the company’s New Zealand subsidiaries.

A replacement director will join “in due course”, a spokesman told insuranceNEWS.com.au.

Sally Herman was elected as a director after she joined the board last October, filling the non-executive role previously held by Mr Cameron.