Suncorp has reported net income of $1.13 billion for the year to June 30, up 55.2% on the previous year despite a huge hit from catastrophes.

Natural hazard claims reached $1.07 billion – $473 million above allowance – thanks to a series of significant events including the Brisbane hailstorm in November, February’s Cyclone Marcia and NSW storms in late April.

As a result, general insurance net income was down 25% to $756 million, but this was balanced by strong results in other divisions.

Outgoing MD and Group CEO Patrick Snowball says his last results presentation is his proudest, and marks the completion of a “remarkable transformation” into a faster, leaner and smarter company.

Gross written premium (GWP) was steady at $8.87 billion, with growth in the New Zealand and compulsory third party portfolios offsetting reductions in Australian motor and home.

Australian motor GWP fell 3.4% to $2.5 billion, while home dropped 1.3% to $2.08 billion.

Commercial Insurance CEO Anthony Day has hailed improved results in his division, where GWP grew 2.1% to $2.95 billion.

“Even after excluding reserve releases, investments and natural hazards, [commercial insurance’s] result is still excellent and above the [previous year],” he said.

He says the commercial division’s diverse business has allowed it to manage earnings volatility and provide resilience to the wider group.

“Our customer-first culture is translating into record high broker relationship scores and excellent customer experience,” he said.

Mr Day says as Australia’s largest personal injury insurer, the commercial division is well positioned for growth as governments recognise the benefits of moving statutory schemes to competitive underwriting.

Suncorp says personal lines remain a tough market, but the tide is starting to turn on pricing.

“We have seen the market stabilise and our ability to retain more customers, plus the impact of natural hazard events coming through,” Mr Snowball said.

Investment income on insurance funds fell 17.7% to $399 million in the year and the combined operating ratio deteriorated to 93.6% from 90.8%.

Group reinsurance expenses fell $50 million to $1.01 billion, mainly due to a reduction in rates, and Suncorp says it has agreed multi-year deals while prices are low.

Mr Snowball, who was appointed in 2009, leaves in October and will be replaced by board member and former banker Michael Cameron.

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