Suncorp has recorded strong full-year results, more than doubling net profit after tax to $780 million, up from $348 million last year.

General insurance after-tax profit rose 34% from last year to $557 million. 

Net claims for the period were stable at $4.6 billion, despite the allowance for natural hazard claims being exceeded by $165 million, due partially to the March Perth and Melbourne storms.

The general insurance trading result was $605 million, representing an insurance trading ratio of 9.6%. Gross written premium (GWP) increased 3.1% to $7 billion, with home and motor achieving growth of 13.6% and 6.4% to $1.73 billion and $2.45 billion respectively. Commercial lines GWP declined 0.1% to $1.709 billion.

The group’s NZ general insurance business recorded premium growth of 6.5% and an insurance trading result of $70 million.

Suncorp Life recorded an after-tax profit of $222 million, up from $117 million last year, and a 6.7% increase in underlying after-tax profit to $192 million. Inforce premium grew 7% to $784 million, while operating expenses fell 5% to $321 million.

The sale of the LJ Hooker subsidiary and Suncorp’s joint venture interests in RACQ Insurance and RAA Insurance contributed pre-tax profits of $215 million.

Group CEO Patrick Snowball told a briefing the group’s results affirm recent strategic changes and show the company is recovering well from the global financial crisis.

“Over the course of the financial year we stabilised the group, strengthened its balance sheet and capital position, appointed a new executive team and laid the foundations for sustainable growth and profits by clarifying our strategic direction and restructuring operations,” he said.

“The benefits of these initiatives can be seen in our solid headline result and the improved underlying performances of our businesses despite ongoing market volatility.”

CEO Commercial Insurance Anthony Day told insuranceNEWS.com.au underlying growth for commercial lines was 3.9% “and we achieved strong growth in our target market of SME packaged business”.

“Our portfolio management has been disciplined, and we’ve made tough decisions around exiting underperforming or non-core products – namely farm, home warranty and aviation insurance.

“That means we have a portfolio where every component is making a contribution to profitability.”

Mr Day says the commercial insurance division will mostly target growth in the intermediated SME segment. The company’s Vero brand will be a key part of the growth strategy, as will building partnerships with brokers.

“We’ve invested in technology to make it easier for brokers to do business with us and we’re seeing strong results,” he said. “Our online portal Vero Central allows brokers to request quotes on specialty products and view up-to-date information on several classes of claims, all with a single login.”

The market share growth target is 3% by 2011/2012.