Suncorp will pursue further efficiencies in its insurance operations after its general insurance profit grew 79% to $883 million in the year to June 30.

CEO Patrick Snowball says the group has completed a turnaround that began with the acquisition of Promina in 2007 and included the sale of banking assets this year. “There is a long way to take this business going forward,” he said last week.

A $632 million loss from the banking sale dragged the group’s full-year profit down 32% to $491 million, and general insurance was the bright spot in a result that also included a drop in life insurance profit to $60 million from $251 million.

Gross written premium (GWP) grew 8% to $8.59 billion and the combined ratio improved to 91.4% from 103%. Net claims fell 9% to $4.92 billion.

CFO John Nesbitt says general insurance has shown price leadership in a competitive market, and the business continues to improve.

GWP from motor grew 5% to $2.76 billion, and the group has continued its assault on costs, announcing a joint venture with Chicago-based international car parts supplier LKQ.

Mr Snowball says Suncorp, the largest user of smash repair services in Australia, pays $500 million a year for parts, some of which have mark-ups of more than 400%.

Personal Insurance CEO Mark Milliner says motor remains the most competitive market.

Home insurance GWP grew 10% to $2.5 billion, or 12% adjusting for the removal of the Victorian fire services levy (FSL).

Mr Milliner says new market entrants will face headwinds in home insurance and the capital they must hold for natural catastrophes.

“The sophistication of our pricing capability really does differentiate us,” he told an analysts’ briefing. “The risks they select may not be as profitable.”

Commercial GWP increased 8% to $1.99 billion, or 9% adjusted for the FSL. Suncorp says average Australian rates grew 4% and brokers and customers reported increased satisfaction from the group’s simplification program and improved claims management.

Commercial Insurance CEO Anthony Day says although some property rates dropped off in May and June, most products have seen strong growth over the second half.

Compulsory third party GWP increased 8.5% to $978 million, while the mining boom in WA is credited with a 14.5% rise in GWP from workers’ compensation to $308 million.

New Zealand GWP was up 14% to $944 million. Vero New Zealand CEO Gary Dransfield says as market leader in commercial lines, the company has been able to raise rates.

Mr Snowball says the overall results “do not necessarily reflect the potential of the bank or life insurance operations”, and he sees these operations eventually smoothing out the volatility of general insurance.