Suncorp’s general insurance gross written premium (GWP) and net profit soared in the six months to December 31, as the division “outperformed expectations”.

“It’s a great outcome in a competitive environment,” CFO John Nesbitt told a media briefing last week.

The division’s GWP increased 9.6% to $4.2 billion, while net profit more than tripled to $564 million from $162 million in the previous corresponding period.

There were fewer natural catastrophes in the period, but the group says price discipline, premium increases and positive investment markets also aided the result.

Natural hazard claims were $113 million below allowance.

“We have positive momentum in personal, commercial and New Zealand lines,” Mr Nesbitt said. “The benefits from simplification are emerging.”

GWP increased 10.1% in commercial lines and 12.1% in the New Zealand business.

In personal lines, home was up 14.5% on an increase in average written premiums and motor increased 5.2% on a combination of unit and premium growth.

The group says it still has capacity to grow in personal lines.

“I think you will see single-digit premium increases in the home portfolio,” CEO Personal Insurance Mark Milliner told the briefing.

Overall, the group reported net profit of $574 million, up 48% on the six months to December 2011.

It holds more than $1.2 billion of capital above operating targets and says it will return excess capital to shareholders at the appropriate time.

Commercial Insurance CEO Anthony Day says the results “clearly demonstrate the hard work in recent years to elevate ourselves to a position of strength in a highly competitive commercial market is paying off”.

“The long-tail products in the commercial insurance market are being buffeted by a number of factors, such as the bond market,” he told insuranceNEWS.com.au. “But by implementing our simplification program early and having a clear focus on pricing we have mitigated some of the impact.

“Suncorp Commercial Insurance has grown across all of its distribution channels, particularly the broker channel.

“Excess capacity remains in the market and, consequently, we do not expect significant rate spikes,” he said.