Nothing wrong with our model, says Suncorp chairman
Suncorp Chairman John Story has reaffirmed the group’s faith in its insurance/banking/wealth management allfinanz model but stopped short of ruling out a demerger.
In a week in which he farewelled CEO John Mulcahy – who finishes officially today to be replaced by CFO Chris Skilton – Mr Story told a media briefing the Suncorp board still has “the utmost confidence in our business model”.
“We have three strong, dynamic lines of business and each of those lines of business is core to our strategy and critical to the business going forward,” he said.
While he failed to acknowledge speculation about takeovers that would probably result in the unravelling of the strategy, he did retain an escape clause. “But the qualification always is made that in the event of approaches that represent superior value for shareholders, then the board in accordance with its normal duties and obligations would consider those approaches.”
Bad debts and a surge of insurance claims driven by major weather events bit into Suncorp’s profits for the six months ended December 31 2008.
Net profit for the period was $258 million, down 32.8% from $384 million in the previous corresponding period.
The company declared an interim dividend of 20 cents a share fully franked, sharply down from 52 cents.
Mr Skilton will step in as acting CEO until a replacement for Mr Mulcahy can be found – a process which could take at least six months, given the complex mix of Suncorp’s activities.
The company will then also lose Mr Skilton, who will leave once the new CEO has appointed his replacement.
In a week in which he farewelled CEO John Mulcahy – who finishes officially today to be replaced by CFO Chris Skilton – Mr Story told a media briefing the Suncorp board still has “the utmost confidence in our business model”.
“We have three strong, dynamic lines of business and each of those lines of business is core to our strategy and critical to the business going forward,” he said.
While he failed to acknowledge speculation about takeovers that would probably result in the unravelling of the strategy, he did retain an escape clause. “But the qualification always is made that in the event of approaches that represent superior value for shareholders, then the board in accordance with its normal duties and obligations would consider those approaches.”
Bad debts and a surge of insurance claims driven by major weather events bit into Suncorp’s profits for the six months ended December 31 2008.
Net profit for the period was $258 million, down 32.8% from $384 million in the previous corresponding period.
The company declared an interim dividend of 20 cents a share fully franked, sharply down from 52 cents.
Mr Skilton will step in as acting CEO until a replacement for Mr Mulcahy can be found – a process which could take at least six months, given the complex mix of Suncorp’s activities.
The company will then also lose Mr Skilton, who will leave once the new CEO has appointed his replacement.