The global financial services industry is expecting another period of consolidation and, according to Suncorp CFO Chris Skilton, Australia will not be immune. Neither, it seems, will Suncorp.

The Queensland-based bancassurer is high on analysts’ list of possible targets, with speculation that QBE could team up with a big bank to launch a bid.

Speaking to reporters after addressing Merrill Lynch’s annual Australian investment conference in New York last week, Mr Skilton did not comment on the speculation, but says splitting Suncorp’s insurance and banking divisions would be difficult and costly.

The Courier Mail reported that Mr Skilton doesn’t believe a break-up of the company is possible. “To break us up you would generate sufficient significant dis-synergies and the cost of those dis-synergies, I would suggest, would probably always outweigh the potential value created by the break-up.”

St George Bank, Promina and IAG have also been put forward as possible buyers.