Suncorp says about 80% of its commercial portfolio has reached the “technical” pricing levels required and it is well placed to expand the business.

Commercial and personal injury CEO Michael Miller says the 20% of the portfolio not yet at the technical level includes the small business area, where a new pricing engine has been deployed.

“It’s not so much about putting rate through, it’s about getting underwriting right,” he told a results briefing on Monday. “Underwriting results are an absolute key focus in commercial.”

Gross written premium in commercial tailored lines, or individually underwritten business, rose 14.9% last financial year, with strength noted in fleet and property. GWP increased 8.6% in the more automated platform business.

Mr Miller says there is “lots of chat” about new entrants and increased competition, but the market is currently stable and rational.

Commercial and personal injury division GWP rose 11.3% to $3.952 billion, including platform business, commercial tailored lines, compulsory third party and workers’ compensation.

The division’s profit after tax declined to $381million from $443 million, with the previous year benefiting from the release of a $124 million business interruption provision.

Suncorp CEO Steve Johnston says the insurer sees “a great opportunity” in commercial and has completed the heavy lifting around portfolio remediation.

“The Vero brand is well regarded, we’ve significantly invested in product, into connectivity with brokers,” he said. “The claims processes have been recognised as best in market for the past six years, so it’s a really strong platform for us to grow.”

Mr Miller says technology, giving underwriters the tools required to do their jobs well, and a focus on customers and brokers are the keys to expanding.

Suncorp’s strategy includes lifting commercial’s market share to second position from fourth, and Mr Miller says he has a “plentiful palette of initiatives” to draw upon.

The insurer reported on Monday that group full-year net profit after tax had increased 11.8% to $1.197 billion on stronger premium and investment returns, and with natural hazard costs below the annual allowance.

Consumer insurance profit after tax more than doubled to $424 million and Suncorp New Zealand earnings increased to $213 million from $82 million a year earlier. The company is moving forward as a pureplay insurer after recently completing the sale of its banking business to ANZ.

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