Suncorp has recorded a 33% increase in general profit to $821 million for this financial year but increases in underlying profit will be slower if the general insurance trading margin reverts to its “long-term sustainable” range, according to Chairman John Story.

Speaking at its AGM last week, Mr Story said the strength of the company’s operations in banking, insurance and wealth management throughout Australia – but particularly in Queensland – is reflected in the financial performance.

CEO John Mulcahy told shareholders premium growth in the first three months “is in accordance with our expectations”, and is on track to reach at least 6% for the year.

He agrees competition in the market is strong, but “we are confident that the various initiatives being implemented in general insurance will enable us to take market share from our competitors”.

“Overall claims costs continue to demonstrate favourable trends, and there have been no major claims events to date, although we are only just entering the storm season.”

Mr Mulcahy says higher oil prices are starting to affect the economy and the outlook is far riskier than it was late last year. But he says the risk is “still manageable” and interest rates are likely to remain low.