Land of the rising Suncorp
Suncorp has shrugged off a difficult investment market and higher claims by announcing it’s in line to meet earnings forecasts.
The diversified financial group’s general insurance division expects to report a trading ratio between 9% and 12%, while bank earnings are expected to improve by up to 12%.
And Suncorp’s wealth management division is on course to deliver profit growth in excess of 10%.
The news last Wednesday prompted some analysts to place “buy” ratings on the company and sent the share price up sharply. By noon Friday the stock had appreciated 11% to $15.10.
The company appears to have turned a corner after enduring challenging trading conditions and absorbing the Promina group of companies.
In a note to investors last Tuesday, Credit Suisse reported good prospects for the company in the medium term, noting increased personal rate rises and likely commercial rises.
Suncorp also intends to raise $325 million from investors with an issue of convertible preference shares valued at $100 each. The investment will convert into ordinary shares in July 2013.
Credit Suisse analyst Arjan van Veen told insuranceNEWS.com.au it is a “relatively small issue” intended to replenish the hit on equity experienced by insurers in recent times.
The diversified financial group’s general insurance division expects to report a trading ratio between 9% and 12%, while bank earnings are expected to improve by up to 12%.
And Suncorp’s wealth management division is on course to deliver profit growth in excess of 10%.
The news last Wednesday prompted some analysts to place “buy” ratings on the company and sent the share price up sharply. By noon Friday the stock had appreciated 11% to $15.10.
The company appears to have turned a corner after enduring challenging trading conditions and absorbing the Promina group of companies.
In a note to investors last Tuesday, Credit Suisse reported good prospects for the company in the medium term, noting increased personal rate rises and likely commercial rises.
Suncorp also intends to raise $325 million from investors with an issue of convertible preference shares valued at $100 each. The investment will convert into ordinary shares in July 2013.
Credit Suisse analyst Arjan van Veen told insuranceNEWS.com.au it is a “relatively small issue” intended to replenish the hit on equity experienced by insurers in recent times.