Suncorp : FY16 Results Presentation

Good morning and welcome to Suncorp's financial results for the full year ended 30 June 2016.

I'd like to acknowledge the traditional owners of the land that we meet on here today, the Gadigal (Gadi‐gall) people, and pay my respects to Aboriginal and Torres Strait Islander people both past and present

Reminder to please switch off mobile phones

In case of an emergency, please remain in your seats and follow directions from Suncorp fire wardens

This morning we have presentations from Suncorp CEO and Managing Director, Michael Cameron and our CFO Steve Johnston. Michael will start by outlining some of the highlights of the past six months before handing over to Steve to run through the detailed numbers. Michael will then cover off on the outlook before we open up for questions.

I'll now hand over to Michael to start proceedings.

• Thank you Mark.

• Good morning everyone, and thank you for joining us today.

• In the last six months,

  • we reset our strategy to deliver value to our customers

  • aligned the operating model to the new strategy, and

  • worked hard to achieve improvements in working claims as we move towards restoring UITR

• In a very competitive market, I'm pleased to report top line growth across all of our businesses, and

• we continue to make positive steps in building a more resilient business. For example, managing the impact of natural hazards with additional cover for the coming year.

• The NPAT result of $1,038 million reflects lower returns from investment markets and a reduction in reserve releases.

• Our Bank delivered 11% growth in NPAT and the Life business 14% growth, highlighting the quality of these businesses and the benefits of diversification.

• Included in these numbers is a significant contribution of $182 million from New Zealand.

• Dividends of 68 cents per share fully franked, reflect a payout ratio of 80% of cash earnings.

• Included in the Result are a number of major items:

  • On an after tax basis, the impact of natural hazards was $237 million lower than the prior year, and

  • Investment earnings in General Insurance and Life were $138 million lower and

  • While Reserve releases were still well in excess of the long term average, the after tax benefit was $56 million lower this year.

  • At our Investor Day in May, we indicated the creation of a $55 million provision for restructure ($39 million after tax). This initiative will generate at least $80 million of recurring benefits in the coming year

  • I'll talk about working claims in a moment, but Home, Motor and Commercial were

$156 million after tax higher.