Suncorp sets two year insurance target
(24 May 2010 – Australia) Suncorp has set its sights on improving its insurance business by at least 3 percent over the next two years.
The group’s chief executive officer, Patrick Snowball laid out the bank’s plans for growth of its insurance business, which accounts for the majority of the group’s profits on a normalised basis, at an investor day.
Mr Snowball said that the improvements in the underlying insurance margin would be underpinned by the group’s Building Blocks program, which would deliver around A$235 million in annual benefits by June 2013.
The bank said in a statement that it plans to absorb expenses of A$120 million within the existing cost base by cutting discretionary spending and redirecting other capital expenditure.
Mr Snowball added that Suncorp’s insurance business holds a clear advantage over its competitors because of its scale and the fact the bank has its own manufacturing, pricing and distribution channels.
The bank’s move to a functional model and single view of pricing and claims will ensure the general insurance business leverages scale advantages across all of its brands and unlocks the potential in functional capability that has not been realised to date, Mr Snowball highlighted.
Mr Snowball said that the improvements in the underlying insurance margin would be underpinned by the group’s Building Blocks program, which would deliver around A$235 million in annual benefits by June 2013.
The bank said in a statement that it plans to absorb expenses of A$120 million within the existing cost base by cutting discretionary spending and redirecting other capital expenditure.
Mr Snowball added that Suncorp’s insurance business holds a clear advantage over its competitors because of its scale and the fact the bank has its own manufacturing, pricing and distribution channels.
The bank’s move to a functional model and single view of pricing and claims will ensure the general insurance business leverages scale advantages across all of its brands and unlocks the potential in functional capability that has not been realised to date, Mr Snowball highlighted.
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