Allfinanz company Suncorp has reported a 33% increase in net profit to $821 million for the year to June, with general insurance earnings up 40% to $651 million – a result CEO John Mulcahy attributes to an improved claims environment and favourable market.

The company released $205 million in reserves, which more than offset $192 million in losses from the worst storms in nine years – excluding the Sydney hailstorms of 1999.

Mr Mulcahy says the group’s strong result is evidence that “the Suncorp business model is working”. He expects Suncorp to win market share across its businesses from its major rivals.

“The fundamentals of the business are strong but the result was enhanced by solid equity markets, historic low loan losses, a high insurance trading result and the fact that Suncorp has performed ‘above systems growth’ in key areas,” he said.