NATURAL DISASTERS CONTINUE TO POUND SUNCORP INSURANCE

Written on the 18 May 2012

NATURAL DISASTERS CONTINUE TO POUND SUNCORP INSURANCE

SUNCORP has revealed a $253 million blowout on its general insurance operations.

The Brisbane-based and ASX-listed insurer reported $714 million in natural hazard claims for the 10 months to April, well in excess of the allocated $461 million for payouts.

The bulk of the blowout was due to $250 million paid on claims from an inner-city hailstorm in Melbourne last December, the insurer reports.

A hail storm in southeast Queensland last October and flooding and storms in regional areas of the state also contributed to the blowout in paid claims.

Despite the increased claims, Suncorp reports the underlying performance of its general insurance operations has improved ahead of expectations.

The insurer forecast a return to unit growth across its motor and home insurance portfolios.

Suncorp’s core bank business today reported impairment losses of $13 million for the quarter, a figure the bank says is in line with its medium-term expectations.

Non-performing loans amount to $554 million but the bank says that amount is a small proportion of total lending remains.

The bank says total lending increased 3 per cent for the quarter to $42 billion.

Suncorp Bank chief executive David Foster says credit growth continued to ‘trend below the average of recent years, reflecting subdued consumer confidence’.

But he added that consumers were paying down debt at a faster rate than ‘obliged’.

“This trend is weighing on the overall banking system, but Suncorp Bank continues to grow as consumers look for alternatives to the major banks,” he says.


Latest News

FLYING START TO 2017 PASSENGER NUMBERS FOR GOLD COAST AIRPORT

RECORD numbers of travellers used the Gold Coast Airport (GCA) in January this year, continuing a five-year trend ...

SUNCORP SAYS IT'S 'COVERED' AGAINST FINANCIAL COST OF CYCLONE DEBBIE

INSURER Suncorp (ASX: SUN) says it is "well protected" against the financial impact of Cyclone Debbie th...

ADELAIDE DIGITAL MARKETING GURUS CHANGING THE FACE OF ONLINE RETAILING

Frank Grasso, CEO of Adelaide based Dynamic Creative, believes his company's new software will revolutionise Adwo...

WHY A JUNIOR MINER DECIDED TO JOIN THE RANKS OF THE HOT POT STOCKS

USUALLY, when a relatively unknown explorer experiences a sharp spike in its share price, it means they've fou...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter