Business Description:
Suncorp Group Limited (SUN) is a Queensland-based financial services conglomerate offering retail and business banking, general insurance, life insurance, superannuation and investment products in Australia and New Zealand. SUN has five core businesses including Personal Insurance, Commercial Insurance, Vero New Zealand, Suncorp Bank, and Suncorp Life.

Strategy Analysis:
The strategy is to continue with the existing diversified financial services model of general insurance, banking, life insurance and niche wealth management. The general insurance business is being restructured away from the devolved former Promina model to a traditional shared services approach. The bank will continue as a non-core book of large loans to property developers, to be funded wholesale but in runoff, and a core book of retail and SME loans to be funded for growth mainly by deposits. Extraction of efficiencies and cost savings through business simplification is an important theme. The bank is viewed as a core division, is not for sale and will be managed as a traditional regional bank emphasising retail and SME loans and deposits. Suncorp Group reported NPAT down 41.92% to $453m for the year ended 30 June 2011. Revenues from ordinary activities were $19.03bn, up 21.37% from last year. The General Insurance profit after tax was $392m. This result was achieved despite the unprecedented sequence of natural hazard events. Natural hazard claims were $325m in excess of allowances and additional reinsurance protections cost were $232m. Diluted EPS was 35.56 cents compared to 60.10 cents last year. The net operating cash inflow was $11.05bn compared to an outflow of $1.66bn in the pcp. The final dividend declared was 20 cents, taking the full year dividend to 35 cents, in line with 35 cents last year.