Suncorp’s net profit from continuing operations fell 7.2 per cent to $348 million during the first half, weighed down by a surge of bushfire and hailstorm claims.
The insurance giant’s revenue fell 6.1 per cent to $7.05 billion for the six months to December 31, with its net result also hurt by higher regulatory project costs, the low yield environment, and an increasingly competitive mortgage market.
Suncorp reported a statutory net profit of $642 million – more than double the figure from a year ago – boosted by a $293 million gain on the sale of its Capital SMART and ACM Parts businesses.
The bushfires which ravaged Australia and killed 33 people, and hailstorms along the east coast, also impacted Suncorp’s Australian insurance arm.
The cost of natural hazards was $489 million, $104 million higher than the insurer had allowed for.
Suncorp said it has assessed 90 per cent of claims from the bushfires.
Chief financial officer Jeremy Robson said handling all these claims also contributed to costs.
The company will maintain an interim dividend of 26 cents per share, fully franked.
AAP
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