Suncorp is actively looking for a buyer for its bank and wealth management operations as it seeks ways to settle down its troubled accounts. Last week’s AGM in Brisbane was not for the faint-hearted as disgruntled shareholders grilled executives on everything from soaring claims to asset sales.

Shareholders accused Suncorp of lacking direction after the company announced it was open to offers for the bank division only to backtrack when the Federal Government guaranteed bank deposits.

Executives were questioned by shareholders as to why Suncorp would even consider a proposal to sell its banking business when its profits before tax increased by 11.2% to $633 million.

Chairman John Story said the board recognises the “inherent strength” of the bank, but it would have been irresponsible to ignore “strong expressions of interest” by three parties.

It’s understood approaches were made by the Commonwealth Bank and ANZ Banking Group and an unidentified third party.
 
CEO John Mulcahy told an American Chamber of Commerce luncheon in Melbourne on Friday that there have been no other approaches, although media reports over the weekend suggest Suncorp is actively seeking further bids.

Mr Mulcahy also told the luncheon he believes there will be further consolidation in the local insurance industry, and that a top-end merger is still possible.

At the AGM last week, Suncorp executives were also questioned over the “appalling” general insurance result, with net profit declining to $556 million.

Mr Story said fluctuating fortunes are “just the nature of the insurance industry”.