It probably won’t generate positive returns for a while, but Suncorp’s merger with Promina is a good bet over the long term. That’s the verdict of ratings agency Standard and Poor’s (S&P), which upgraded the new company immediately after the transaction took effect last week.

S&P announced the new A+ rating on March 21. It notes Suncorp has some big hurdles ahead but it now has a higher proportion of low-risk lines, greater geographic diversity and well-recognised and successful brands.

“The positive outlook on Suncorp entities reflects an expectation that the combined group will be able to contend with material integration challenges,” the latest S&P report says.

“With the merger, the ratings on Suncorp entities will benefit from an increased scale and diversity of operations, and a more material involvement in non-life insurance operations.”

It’s business as usual at the new organisation. CEO John Mulcahy says any changes for the group’s combined staff are likely to be minor, particularly over the first few months of the integration.

He told staff in an internal email the main priority over the coming weeks is to make the necessary appointments at senior executive level.

“As soon as that team is in place, we can develop a clearer picture of how the future will take shape,” he said. “What I do know today is that any changes will be carefully considered and planned, and that we are committed to using a ‘best of both’ approach to build the new organisation.”

There will be no change for brokers handling Vero products. Vero CEO Duncan West says the Promina brands, particularly Vero, will continue to compete for new and existing business.

“Suncorp is committed to maintaining the Vero business and brand,” he said. “There is no intention to sell off all or part of the Vero business.”