The insurer with most to lose from Cyclone Larry seems to have escaped unscathed, last week upgrading its full-year expectations by about 19%.

Suncorp informed the Australian Stock Exchange it expects a net profit of $900 million for 2005/06. The forecast includes all expected costs from this year’s North Queensland cyclone season.

According to today’s Australian Financial Review, Westpac is considering a takeover bid for Suncorp. Westpac CEO David Morgan dodged the question at a recent strategy session, saying he does not comment on specific opportunities.

Suncorp has confirmed it will spend $80 million on claims relating to Cyclone Larry. That result, which is net of Suncorp’s reinsurance recoveries, is at the low end of the previously advised range.

Communications GM Steve Johnston says Suncorp also had stronger than expected investment returns on its technical reserves. The company will announce its official financial year results on September 1.