Vero will no longer sell consumer and construction insurance through Australian brokers in changes announced by Suncorp today as it continues to simplify and review its operations.

Suncorp EGM Commercial Darren O’Connell says the change at Vero will take effect for Australian brokers from the end of next month.

“Vero is a strong national insurance brand, and this decision enables the group to simplify the brand’s product suite and focus on the commercial products and services that will better support the needs of its broker partners and customers,” Mr O’Connell said.

“We’re working closely with our broker partners to ensure a smooth transition with minimal disruption to their business or customers.”

CEO Steve Johnston told the half-year earnings briefing today that the company had continued to review its portfolio following the sale of the Life business and the Capital Smart crash repair operations.

“This has led us to taking the tough decisions to exit intermediated Vero Australian consumer and construction policies, the underwritten travel portfolio and we will no longer offer personal loans in our bank,” he said. “We are also well advanced in our strategic review of the wealth business.”

Mr Johnston told insuranceNEWS.com.au that the insurance trading ratios for the consumer and construction business sold through Vero had been sub-optimal for some time.

“We haven’t been able to remediate it so we think the best pathway is to exit,” he said “I want us to be focused on doing less but doing it better. This is one example where the portfolio is reasonably marginal in the group context.”

Consumer and construction represents only about 11% of the broker portfolio.

In a note to brokers Mr O’Connell says the decision will allow Vero to focus on its core commercial products: SME packages, fleet and non-fleet motor, property, professional and financial risks, engineering, liability, surety, and underwritten workers’ compensation.

“The decision to no longer offer Vero construction and Vero home, landlord and private motor insurance products follows a review of our business to simplify and strengthen our overall commercial insurance proposition and adjust to current market conditions,” he says.

Suncorp says the changes at Vero Australia do not affect the New Zealand business.