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Suncorp splits insurance division leadership

Suncorp has split the leadership of its Australian insurance business between two executives as it seeks to accelerate improved performance from its largest division.

CEO Steve Johnston has also consolidated group and insurance head office functions, which he says will provide a streamlined layer of support to reduce duplication, drive efficiencies and speed up decision-making.

Accountability for reinsurance will be combined with management of group capital and the balance sheet, and there will be a focus on fast-tracking digital and automation opportunities.

“The change to our model represents more than just a change to the structure,” he told a briefing last week.

“However, this is a critical first step, which will be combined with clearer accountability at all levels of the organisation and an across-the-board shift to more agile ways of working.”

The changes have seen the departure of CEO Insurance Gary Dransfield, who was appointed to lead the division in October 2017. Mr Dransfield joined Suncorp in 2009.

Current Chief Customer & Digital Officer Lisa Harrison has been appointed Insurance Product and Portfolio CEO, encompassing distribution channels, customer strategy, brand and marketing, product and pricing and innovation.

The role of Chief Operating Officer – Insurance will be taken up by Paul Smeaton, who has led the New Zealand business for the past five years and who has been with Suncorp for 26 years.

Mr Smeaton will lead all aspects of claims management and operations and some group functions including real estate management and procurement.

Suncorp also said last week that the impact of COVID-19 on the group’s profit and loss for the past financial year is expected to be “broadly neutral”, excluding investment market movements and bank impairment losses.

The company has finalised its catastrophe reinsurance program for the current fiscal year amid a hardening market, leading it to increase the natural hazard allowance by $90-$130 million.

Morningstar analyst Nathan Zaia says many big businesses have shown agility in response to the COVID-19 pandemic and Suncorp is no exception.

“The rejig to the operating model in our view is an attempt to maintain this momentum and for CEO Steve Johnston to install an executive team he thinks can execute change,” he wrote in a research note.

Macquarie analysts say the restructure “clearly draws a line” between Suncorp’s bank and general insurance businesses, but management has advised no “shift of intent” regarding the role of the bank within the group.