Suncorp writes off $500m

Suncorp is writing-off around $500m (after tax) of intangible assets from its Life Insurance business as the life insurance industry drowns in claims and policy lapses. The annual result will include a $350m write-off of goodwill and a further $150m loss due to higher expected claims. As they're accounting for 'non-cash' losses, Suncorp’s underlying earnings and dividends won't be impacted, though we'd prefer management to be upfront and lead with the pre-tax loss amounts. Chief executive Partick Snowball said the revised claims and lapse rate assumptions reflect the life insurance industry’s deterioration. As we explained in Suncorp: Interim result...

Suncorp is writing-off around $500m (after tax) of intangible assets from its Life Insurance business as the life insurance industry drowns in claims and policy lapses. The annual result will include a $350m write-off of goodwill and a further $150m loss due to higher expected claims. As they're accounting for 'non-cash' losses, Suncorp’s underlying earnings and dividends won't be impacted, though we'd prefer management to be upfront and lead with the pre-tax loss amounts.

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