Suncorp has blamed a $141 million drop in net profit after tax for the half-year to December 31 on the ongoing impact of natural catastrophes battering Australia and NZ.

The group last week revealed its balance sheet has taken a significant hit from the recent Queensland floods and the September 4 Christchurch earthquake and aftershocks.

The group’s profit after tax dropped from $364 million in the corresponding period last year to $223 million, while the general insurance profit also recorded a significant drop from $347 million to $292 million.

However, Suncorp recorded a growth in Australian short-tail classes, which along with home rose 8.8%. Motor was up 4.7%.

Premium increases in these classes were again attributed to the ongoing impacts of weather events and higher reinsurance costs.

Gross written premium on commercial insurance grew by 2.3%.

Group CEO Patrick Snowball says that despite the profit losses, Suncorp has performed well and is making good progress on its strategic building blocks and simplification programs.

“Our group is considerably stronger and far more stable than at this time last year,” he said.

Mr Snowball says the past six months have been “absolutely horrible”.

“If you think about it we have had two significant earthquakes, two cyclones, three major floods and a whole string of other flood and weather events,” he said. “I guess that has to be some sort of record.”

The group’s extensive natural catastrophe reinsurance program has protected its balance sheet, but he says the group has been replacing panels of protection as the events have occurred.

“So currently today we still have the same natural catastrophe protection on the balance sheet as we did on July 1.”

Mr Snowball says although it was disappointing to see a drop in profit, the impact could have been much worse if the group hadn’t embarked on its transformation program.

“It would have simply not been possible without the pooling of resources across the group,” he said.