Suncorp Life profits from IFA push

Clarifying strategic direction

By Julie May
Thu 26 Aug 2010

Expanding its distribution network has helped Suncorp Life to achieve a $222 million profit.

Suncorp Life's focus on building its distribution reach and capability has resulted in a net profit after tax, including market adjustments, of $222 million, up from $117 million in 2009, the group has announced.

Suncorp Life chief executive Geoff Summerhayes said it was a very pleasing result for Suncorp Life, particularly in the independent financial adviser (IFA) market, where Suncorp Life had grown new business by 15 per cent.

"Today's results are the culmination of a strong strategy around refocusing as a life insurance specialist and a determination to lead the IFA market," Summerhayes said.

"We recognise we still have some way to go, particularly in building our Direct distribution business, but our foundations are in place, our strategy is supported by a strong structure and business model, and we expect to continue to gain momentum in the markets that we seek to compete in."

Suncorp Life reported that in-force premiums had grown by 7 per cent to $784 million, while operating expenses had fallen 5 per cent to $321 million.

Profit on super and investments reached $41 million, up 28 per cent, with profit on asset management up 17 per cent to $14 million.

Suncorp Life's embedded value also increased 12.2 per cent from $2,145 million at June 2009 to $2,406 million at June 2010.

In the meantime, the Suncorp business overall reported a net profit after tax of $780 million for the full year to 30 June 2010, up from $348 million in the previous financial year.

Suncorp chief executive Patrick Snowball said over the financial year, the group strengthened its balance sheet and capital position, appointed a new executive team and laid the foundations for sustainable growth and profits by clarifying its strategic direction and restructuring operations.

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