(Australia) – Regional Australian bank and insurer Suncorp Metway says it plans to stick with its strategy of selling insurance, banking and wealth management products and has predicted a strong improvement in performance this financial year.Addressing shareholders at the company’s annual general meeting, Suncorp acting chief executive Chris Skilton said general insurance would be the main driver for improved earnings.
Skilton said he expected the insurance division to deliver a trading profit within the range of 9 percent to 12 percent of net earned premium “assuming no major catastrophes or unusual claims patterns.”
The company was also on track to achieve A$240 million in annual benefits by June 30 next year from the A$1.4 billion purchase of the GIO general insurance business last year.
Suncorp has also joined Westpac, AMP and the Commonwealth Bank in abandoning share option schemes for executives, following criticism over recently departed chief executive Steve Jones, who made A$16 million profit on exercising options in 2001.
Deferred shares awarded on a performance basis will now replace share options in executive remuneration packages.