(Australia) Suncorp-Metway has told investors that pre-tax returns on general insurance shareholders funds for the six months to June 2003 will be in the range of $25 to $35 million.In a statement to the ASX, the Queensland bank and insurer said the result meant the investment return on GI shareholders funds for the full year to June would reach around $10 million.
This followed a $17 million loss over the first half of the year because of poor equity market performance, a result that led Suncorp to recently reduce its earnings volatility by reducing the amount invested in its GI portfolio.
Suncorp reduced the amount of GI shareholders funds it invested by 85 percent to 40 percent.
The company said while the move would lead to a reduction in short-term returns, it would improve the diversification of the portfolio and lessen risks, therefore stabilising earnings and capital.