Suncorp's profit drops

Mark Nolan/Getty Images

Suncorp’s half year profits were dragged down by bigger than expected insurance payouts for natural disasters.

The insurance and finance group, which manages $94 billion in assets, posted a 16% fall in profit to $530 million for the six months to December.

Dividends were also down. The company declared a fully franked interim dividend of 30 cents a share, down from 38 cents.

CEO Michael Cameron, who has been in the role 100 days, says his key objective is to maintain stability and to keep momentum.

“We recognise the global uncertainty created by financial markets, climate change and other factors such as cyber security,” he says.

“Refinements are being made to our strategy to invigorate growth and drive more resilience to volatility. Increasing our resilience will be achieved by two streams of activity, elevating the role of the customer and recalibrating our costs.”

Cameron is also focused on costs with $170 million in savings expected in 2018.

He also foreshadowed a rationalisation of brands.

More detail is expected at the annual investor day on May 25.

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