Suncorp’s general insurance margin continues to improve, CEO Patrick Snowball told last week’s annual general meeting.

Projects to simplify and build the business have improved operating efficiency and the division has coped with the headwinds of natural hazards, increased reinsurance costs and lower investment yields, he says.

Suncorp has committed to meet or beat a general insurance margin target of 12%, while the reported and underlying insurance trading ratio was above 13% this year.

Mr Snowball says the group is working on risk-based capital models that will capture the benefits of its conglomerate structure, which encompasses general and life insurance and banking.

The group will need less capital, which will allow it to continue to return surplus capital to shareholders.

Mr Snowball says the core businesses have made excellent progress and there has been a turnaround in the group’s culture, with employees pleased at the group’s direction.