Patrick Snowball's appointment as Suncorp Metway's new chief executive has fuelled further speculation that the embattled Queensland group is preparing to offload its banking arm, according to analysts.
"For the last 12 months there have been substantial rumours and a lot of speculation about what direction Suncorp Metway will be taking down the track," ABN Amro analyst Tony Russell said.
"Certainly the market has been happy with the credentials and qualifications of Snowball, given his strong insurance background.
"And considering that insurance is a very large part of Suncorp Metway's business now, it does make sense."
But Russell said the appointment has not dampened expectations or speculation that there will be a break up of Suncorp Metway in the future.
"It comes as no surprise that they've got an insurance man to head the group. It has been on the cards for a while now," Platypus Asset Management portfolio manager Prasad Patkar said.
"It does seem that Suncorp is moving towards the insurance side of the business," Patkar said.
Yesterday, Suncorp Metway said it had appointed Patrick Snowball as chief executive to head the insurance, banking and wealth management business.
Snowball has held senior and executive roles in insurance-related companies such as Aviva, the Towergate group of companies and has also served as a non-executive director of Jardin Lloyd Thompson, an insurance company that employs 750 Australians.
Last week Suncorp Metway said it would re-brand its business as Suncorp Life.
"Life insurance is where 60 per cent of our profit comes from, and we see that percentage of our profit increasing as we further strengthen our life insurance capability," Suncorp group executive Geoff Summerhayes said at the time.
