Suncorp has launched a renewed push for investment in disaster mitigation measures as the ideal way to stimulate the economy.

Reporting its full-year results last week, the insurer says investing in infrastructure would help Australia recover from the coronavirus pandemic.

“We believe the time is right for a nation-building program encompassing infrastructure, incentives, improved building standards and the removal of inefficient taxes and charges, all designed to create jobs and stimulate the economy,” Group CEO Steve Johnston said during the group’s results presentation.

“This is about government at all levels coming together with business, big and small, to make a long-overdue investment in our future.”

Mr Johnston says the “underlying problems” that led to the Black Summer of disasters have not gone away.

“Arguably, our nation is no better placed heading into this summer than we were this time last year,” he said.

Mr Johnston says it is important for Suncorp to have “responsible investment and underwriting policies” so that it is able to speak out on such matters.

The insurer confirms it will “cease underwriting, financing or directly investing in new oil and gas projects, phase out underwriting and financing oil and gas by 2025, and directly investing by 2040”. It had already committed to pull out of existing thermal coal by 2025.

Suncorp last week reported full-year net income of $913 million, up from $175 million last year, but acknowledged comparisons are difficult given the divestments of its life business and crash repairer Capital Smart.

Cash earnings of $749 million were down 32.8% on the previous corresponding period, partly as a result of reduced profit from the Insurance Australia division (down 33.9%).

While Suncorp says the FY20 impact of the pandemic on the general insurance businesses is “broadly neutral”, excluding the impacts of investment markets, it has recognised $85 million in additional claims provisions and risk margins to cover COVID-19 uncertainty, including landlord loss of rent and potential business interruption claims.

S&P Global Ratings says Suncorp’s full-year earnings are sound despite “particularly challenging operating conditions”.

S&P says the pandemic and “catastrophic bushfire and storm season” muted headline earnings, but on an underlying basis “the group's performance remained strong”.

Mr Johnston says it has been a challenging year with COVID-19 set to result in “long-lasting economic disruption and fundamentally change the way we live”.

But he says the business has maintained its financial and operational strength.

Suncorp New Zealand announced a net profit of $NZ259 million ($236 million) for the full year to June 30.

The result was driven by underlying premium growth offset by higher natural hazard claims following periods of benign weather conditions, COVID-19 customer support, customer remediation provisions and increased life insurance claims.

The general insurance business, which includes Vero Insurance and AA Insurance, delivered profit after tax of $NZ219 million ($199 million), up 0.9% on the previous corresponding period.