The company’s insurance business is starting to “realise its scale advantages in claims, pricing and access to a customer base of about 9 million”, Chairman Ziggy Switkowski says in the group’s annual report.

The restructure “has been successfully executed, contributing a 3% improvement in the underlying insurance margin and providing a solid foundation for future business growth”.

This is shown in the growth of gross written premium, up 9.3% to $7.96 billion last year with a strong contribution from all product lines, and general insurance net profit of $493 million, Dr Switkowski says.

Life net profit after tax was $251 million and substantial progress has been made with the strategy to grow intermediated and direct distribution channels, the report adds.

Suncorp says recommendations by the House of Representatives committee examining the response to last year’s flood and cyclone catastrophes will “impose additional obligations on general insurers in relation to claims processing, internal dispute resolution practices and underwriting liabilities”.

The report says net incurred claims last year were $5.39 billion with natural disasters leading to claims levels $278 million above the group’s allowances. Net reserve releases of $166 million were $64 million above expectations, thanks to a favourable claims experience in long-tail policy classes.