Suncorp sees opportunities to boost its share of the commercial market as it moves forward as an insurance-focused company following the decision to divest its banking arm.

CEO Steve Johnston says Suncorp has a very established commercial market share in New Zealand while it’s underweight in Australia relative to key competitors and compared to its presence in consumer lines.

“By definition when you have got 25-26% market share in consumer lines and you have got 10% in commercial and you have arguably as we have done underinvested in it over a period of a few years, there is a lot of opportunity there for us, and we can see that,” he told insuranceNEWS.com.au.

“We are underrepresented relative to our size and capability and it is an area we think is going to see some strong growth.”

Suncorp provides intermediated insurance through the Vero brand and has direct package offerings through AAMI and GIO.

Mr Johnston says Vero is a well-regarded brand and the company has built strong and constructive relationships with the broker industry and market.

“As we move forward as a trans-Tasman insurer you are going to see us focused more on that commercial underwriting space, and that means more investment in digital interactions with key broker partners, better underwriting capability and more focus around the Vero brand, particularly, as our go-to-market intermediated insurer,” he said.

Suncorp released its full year financial results last week, reporting that its commercial result included strong performances in NTI and Property, as well as in the long tail liability business.

Commercial gross written premium (GWP), excluding emergency service levies, increased to $1.66 billion in the year to June 30, up 6.2% from the previous corresponding period.

Normalised for portfolio exits commercial GWP growth was 7.5%, while it was higher in the second half at 9.6%, driven by the short-tail and long-tail portfolios.

Consumer GWP excluding portfolio exits grew 9.1%, with average written premium (AWP) in the home portfolio rising to reflect pricing responses to higher natural hazard and reinsurance costs. Motor AWP growth was driven by pricing for inflation, including increases in sums insured