Suncorp said in a profit announcement on the ASX that the result included a $496 million after-tax write-down of Suncorp Life goodwill, including intangible assets and adjustments to policy liabilities following a material revision of claims and lapse assumptions.
Profit after tax from the business lines was $1.3 billion in total with the general insurance business accounting for $1.01 billion of all after-tax profit.
The banking business generated an after-tax profit of $228 million while the life business produced an after-tax profit of $92 million before policy adjustments.
According to the profit statement by Suncorp Group the strong results produced by each of its business lines were the result of “prioritising margins ahead of growth and delivering operational efficiencies”.
The banking and insurance group said it has continued to focus on its balance sheet during the financial year with a number of initiatives including “increased life reinsurance arrangements, issuance of preference shares and subordinated debt and good progression on the risk-based capital program of work”.
“These initiatives further support the group’s commitment to maintain a de-risked balance sheet while delivering shareholders high yield and above-system growth,” said Suncorp.
The group also noted in the results that its bank retail and business lending was up five per cent to $49,828 million and that its life risk individual in-force premium was up 8.5 per cent to $852 million.
