Suncorp Group CEO Patrick Snowball plans to stay in the role until at least 2015, two years beyond his old contract that was due to end on August 31, 2013.

Rather than a fixed-term package, the Suncorp board has agreed to new contract continuing “indefinitely” until either party terminates it.

Mr Snowball has been adamant since joining the group in September 2009 that he would not stay at Suncorp beyond 2013, and has maintained a high profile in the UK insurance market.

While he has not discussed the reasons behind his decision beyond saying he’s enjoying the job, his new contract also comes with a hefty increase in base pay from $2.2 million a year to $2.55 million.

His bonus payments will also rise from 100% of his base salary to 125%, with a maximum set at 150%.

As with his previous agreement, 50% of this bonus remains deferred for two years and can be reduced or lost if Mr Snowball doesn’t follow risk management policies and practices.

As part of the new deal Mr Snowball can receive $4 million of Suncorp options from September 1 next year subject to meeting certain performance targets. After September 1, 2013, the board will decide the terms of any further share options.

Mr Snowball says he is enjoying the challenge of being Suncorp’s CEO.

“Suncorp is clearly progressing as an organisation and is poised to deliver the benefits of our new strategy,” he said. “I am enjoying the role and appreciate the opportunity to extend my time at Suncorp to oversee the group’s continued progress.”

The new contract also carries over a $125,000 allowance should Mr Snowball decide to return to the UK, but this will not be paid if he leaves the company before August 31, 2013.

Chairman John Story says the board is pleased with Mr Snowball’s agreement to extend his contract.

“He and his executive team have achieved much in the past two years,” he said. “Suncorp is now a far stronger organisation with a significant de-risked business model and a clear strategic direction.”