Suncorp has reported a 47% increase in net profit to $413 million for the six months to December, although there are signs the good times are unlikely to last.

CEO John Mulcahy says the competitive environment in financial services is tough, and only getting tougher, “but we are now well positioned to confront the challenges and are making excellent progress, as our results for the period testify.”

Mr Mulcahy said that each of the company’s lines of business delivered consistent growth in profitability for the last half of 2004.

General insurance delivered a good improvement in profit before tax, increasing 59% to $341 million. It was driven by a combination of good revenue growth, improved claims experience and increased investment income.

Mr Mulcahy says the six months to December was also a period of transition in the insurance division.

“In general insurance, the results for the first half were excellent and while we see no signs of deterioration in industry fundamentals, we would not expect to see the strong claims experience of the first half continue indefinitely,” he said.