Suncorp’s commercial and personal injury after-tax profit rose 7.2% to $208 million in the first half as the tailored and platform businesses led gross written premium gains. 

GWP rose 9.7% to $2.09 billion, with platform business up 15.4%, tailored lines rising 9.7%, compulsory third party up 9% and workers’ compensation gaining 5.6%.

CFO Jeremy Robson says strong growth was seen in fleet motor and lower growth in property, reflecting market conditions. The underlying insurance trading ratio dropped to 10% from 14.7%, mostly reflecting deteriorating CTP loss ratios and a reduction in the reserve release assumption.

Suncorp picked up some RACQ CTP business after the motoring club’s insurance arm left that market.

“Queensland was impacted by the poorer quality of the RACQ book, and we continue to engage constructively with the Queensland government to find solutions,” Mr Robson said yesterday.

“NSW CTP was impacted by an industry-wide increase in claims frequency, with actions including pricing already in place.”

Commercial and personal injury insurance CEO Michael Miller says tailored lines continue to show premium growth, while inflation and reinsurance costs are reducing. Price gains are in the mid to low single digits.

Competition has increased, particularly from offshore, with much of that directed at the corporate sector, particularly in property, he says.

“What we’ve seen is probably a composition shift in that portfolio, a bit more motor, a bit less property, because we are trying to hold those margins coming through,” he said.  

In the platform business, Suncorp continues to focus on technical pricing, risk selection and improving margin. Mr Miller says better results are expected for that portfolio next year.  

Suncorp’s overall half-year profit jumped 89% to $1.1 billion, driven by bank sale proceeds and a relatively benign period for natural perils.

GWP increased 8.9% to $7.5 billion, group cash earnings rose to $860 million from $660 million, and the underlying general insurance trading ratio was 11.8%, in line with guidance.

Australian consumer insurance earnings grew to $423 million from $203 million, and the New Zealand result jumped to $208 million from $74 million.