24 Aug 2011

42% fall in profit reported by Suncorp

12:16 pm on 24 August 2011

Suncorp has reported a 42% fall in full-year net profit, hurt by unprecedented weather events and natural disasters that sent claims soaring.

The Australian insurer and bank says net profit was $A453 million for the year to June, compared with $A780 million reported a year ago.

Suncorp's New Zealand operations reported a pretax insurance trading loss of $203 million, compared with a $70 million profit in the previous year.

It says its reinsurance provided protection against the $2.5 billion worth of claims arising from the Christchurch earthquakes, but costs increased substantially as it purchased more reinsurance.

Apart from the earthquakes, Suncorp says its New Zealand operations recorded a solid underlying performance.