Spotlight stays on Suncorp
Suncorp is the subject of renewed curiosity following spirited trading in its shares late last week and a rating downgrade by Moody’s.
More than 20 million Suncorp shares changed hands last Thursday. The stock closed at $5.02, up 40 cents, after peaking at $5.17 during the day. Almost 9 million shares were traded on Friday, when they closed at $4.80 after reaching $5.07 through the day.
The company is standing firm on Chairman John Story’s commitment to the group’s allfinanz model in the face of speculation that a buyer is being sought for its banking operations.
A Suncorp spokesman told insuranceNEWS.com.au there is no substance to speculation that the group is restructuring its business divisions to clear the way for a sale of its bank.
“At the time of Promina merger in 2007, we told the market that one of our integration projects would be to review the legal entity structure of the group so it better reflected our operating model,” he said.
“The project has been ongoing for two years now and involves grouping the general insurance legal entities together, as well as doing the same in wealth management and banking.”
The spokesman said any comment on the trading volume of Suncorp shares would be speculation, but like Mr Story kept the door open on the possibility of selling the bank.
“We made our position on divestment of assets very clear at results day and that all of our assets are core to the group, but like any company if someone wants to make an offer for any one of those assets the board is obliged to at least consider it,” he said.
Meanwhile, Moody’s has downgraded Suncorp’s long-term deposit and debt ratings to A1 with a stable outlook, from Aa3.
The bank financial strength rating was downgraded to C+ with a negative outlook from B-, while Suncorp’s short-term ratings of Prime-1 were confirmed.
“The Aaa ratings of the bank’s government-guaranteed obligations and were not affected and their outlook remains stable,” Moody’s said in a statement.
“At the same time, Moody’s confirmed the existing Aa3 insurance financial strength rating (IFSR) of Vero Insurance Limited and the A1 IFSR of Suncorp Metway Insurance Limited, but the outlook for these ratings is negative.”
Moody’s says the downgrade of Suncorp’s deposit and debt ratings reflects the impact of the deepening global economic downturn on the bank’s asset quality and earnings.
More than 20 million Suncorp shares changed hands last Thursday. The stock closed at $5.02, up 40 cents, after peaking at $5.17 during the day. Almost 9 million shares were traded on Friday, when they closed at $4.80 after reaching $5.07 through the day.
The company is standing firm on Chairman John Story’s commitment to the group’s allfinanz model in the face of speculation that a buyer is being sought for its banking operations.
A Suncorp spokesman told insuranceNEWS.com.au there is no substance to speculation that the group is restructuring its business divisions to clear the way for a sale of its bank.
“At the time of Promina merger in 2007, we told the market that one of our integration projects would be to review the legal entity structure of the group so it better reflected our operating model,” he said.
“The project has been ongoing for two years now and involves grouping the general insurance legal entities together, as well as doing the same in wealth management and banking.”
The spokesman said any comment on the trading volume of Suncorp shares would be speculation, but like Mr Story kept the door open on the possibility of selling the bank.
“We made our position on divestment of assets very clear at results day and that all of our assets are core to the group, but like any company if someone wants to make an offer for any one of those assets the board is obliged to at least consider it,” he said.
Meanwhile, Moody’s has downgraded Suncorp’s long-term deposit and debt ratings to A1 with a stable outlook, from Aa3.
The bank financial strength rating was downgraded to C+ with a negative outlook from B-, while Suncorp’s short-term ratings of Prime-1 were confirmed.
“The Aaa ratings of the bank’s government-guaranteed obligations and were not affected and their outlook remains stable,” Moody’s said in a statement.
“At the same time, Moody’s confirmed the existing Aa3 insurance financial strength rating (IFSR) of Vero Insurance Limited and the A1 IFSR of Suncorp Metway Insurance Limited, but the outlook for these ratings is negative.”
Moody’s says the downgrade of Suncorp’s deposit and debt ratings reflects the impact of the deepening global economic downturn on the bank’s asset quality and earnings.