SUNCORP GROUP LIMITED Financial results
for the half year ended 31 December 2015
Suncorp Group ('Group', 'the Group', 'the Company' or 'Suncorp') is comprised of Suncorp Group Limited (SGL) and its subsidiaries, its interests in associates and jointly controlled entities.
Net profit after tax (NPAT) for the Group is measured in accordance with Australian Accounting Standards. All figures have been quoted in Australian dollars rounded to the nearest million unless otherwise denoted. All figures relate to the half year ended 31 December 2015 and comparatives are for the half year ended 31 December 2014, unless otherwise stated. Where necessary, comparatives have been restated to reflect any changes in table formats or methodology.
In financial summary tables, where there has been a percentage movement greater than 500% or less than (500%), this has been labelled 'large'. If a line item changes from negative to positive (or vice versa) between periods, this has been labelled "n/a".
This report has not been audited nor reviewed in accordance with Australian Auditing Standards. It should be read in conjunction with the Group's consolidated annual and interim financial reports which have been either audited or reviewed in accordance with Australian Auditing Standards. In the context of ASIC's Regulatory Guide 230, this report contains information that is 'non-IFRS financial information', such as the General Insurance Underlying Insurance Trading Result (ITR) and the Life underlying profit after tax. The calculation of these metrics is outlined in the report and they are shown as they are used internally to determine operating performance within the various businesses.
This report should be read in conjunction with the definitions in Appendix 4.
This report contains general information which is current as at 11 February 2016. It is information given in summary form and does not purport to be complete.
It is not a recommendation or advice in relation to the Group or any product or service offered by Suncorp or any of its subsidiaries. It is not intended to be relied upon as advice to investors or potential investors, and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice, when deciding if an investment is appropriate.
This report should be read in conjunction with all other information concerning Suncorp filed with the Australian Securities Exchange (ASX).
The information in this report is for general information only. To the extent that the information may constitute forward-looking statements, the information reflects Suncorp's intent, belief or current expectations with respect to the business and operations, market conditions, results of operations and financial condition, capital adequacy, specific provisions and risk management practices at the date of this report. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties, many of which are beyond Suncorp's control, which may cause actual results to differ materially from those expressed or implied.
Suncorp undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this report (subject to ASX disclosure requirements).
Level 28, 266 George Street Mark Ley
Brisbane Queensland 4000 Head of Investor Relations
Telephone: (07) 3362 1222 Telephone: 0411 139 134
suncorpgroup.com.au mark.ley@suncorp.com.au
Financial results
for the half year ended 31 December 2015
Basis of preparation 2
Financial results summary 4
Group 6
Result overview 6
Outlook 7
Contribution to profit by division 10
Statement of financial position 11
General Insurance 12
Result overview 12
Profit contribution and General Insurance ratios 13
Statement of assets and liabilities 15
Personal Insurance Australia 16
Commercial Insurance Australia 17
New Zealand 18
Bank 29
Result overview 29
Outlook 30
Profit contribution and Bank ratios 31
Statement of assets and liabilities 32
Life 45
Result overview 45
Outlook 45
Profit contribution 46
Statement of assets and liabilities 52
Group (continued) 53
Group capital 53
Investments 55
Dividends 56
Income tax 56
Appendix 1 - Consolidated statement of comprehensive income and financial position 57
Appendix 2 - Ratio calculations 60
Appendix 3 - Group capital 63
Appendix 4 - Definitions 68
Appendix 5 - 2016 key dates 70
Financial results
for the half year ended 31 December 2015
Group net profit after tax (NPAT) of $530 million (HY15: $631 million)
Profit after tax from business lines* of $544 million (HY15: $681 million)
Group growth of 2.7% was driven by growth across all three business lines
Statutory Return on Average Shareholders' Equity (ROE) of 7.9% (HY15: 9.4%). Cash ROE of 8.3% (HY15: 9.8%)
Interim dividend of 30 cents per share fully franked (HY15: 38 cents)
Based on capital levels at 31 December 2015 on an ex-dividend basis, the Suncorp Group has $506 million in CET1 capital above its operating targets
The Bank Common Equity Tier 1 (CET1) ratio improved to 9.45%. General Insurance holds CET1 of 1.25 times the Prescribed Capital Amount (PCA)
General Insurance NPAT of $297 million (HY15: $419 million) with natural hazards of $362 million, $28 million above the half-year allowance
Reserve releases of $137 million were well above the long-run expectation of 1.5% of net earned premium (NEP), driven by improved long-tail claims management and a benign inflationary environment
After adjusting for natural hazards, investment market volatility and reserve releases, the underlying insurance trading ratio (ITR)* was 10.1% (HY15:14.8%)
Gross written premium (GWP) up 1.4% to $4,417 million (HY15: $4,357 million)
Bank NPAT increased to $194 million (HY15: $176 million) due to lower impairment losses
Bank lending growth of 5.1% reflected a focus on quality, lower risk lending as demonstrated by the reduction in impairment losses (down 74.4%) and non-performing loans (down 15.1%)
Life NPAT was $53 million (HY15: $86 million). Underlying profit increased to $58 million (HY15: $52 million) due to higher planned margins
Life Embedded Value increased to $1,936 million (HY15: $1,845 million) and the value of one year's sales (VOYS) has increased to $23 million (HY15: $18 million)
Suncorp's New Zealand operations, across General and Life Insurance, provided strong earnings diversification with an after tax contribution of over A$75 million
* Refer Appendix 4 for definition of 'profit after tax from business lines' and page 13 for underlying ITR.
Suncorp Group Ltd. issued this content on 11 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 10 February 2016 21:47:23 UTC
Original Document: http://www.suncorpgroup.com.au/announcements-pdf/749645
