Slide 1: FY20 Results Presentation
SUNCORP O FY20 Results Presentation Financial Results for the full year ended 30 June 2020 RESULTS PRESENTATION Release date 21 August 2020 SUNCORP GROUP LIMITED ABN 66 145 290 124 SUNCORP |)
Slide 2: Good morning everyone
FY20 RESULTS PRESENTATION Good morning everyone. 2
Slide 3: High level FY20 financial metrics for the Group
FY20 RESULTS PRESENTATION This slide shows the high level FY20 financial metrics for the Group. In what could only be described as a very challenging year, we have reported net profit after tax of $913 million; cash earnings of $749 million and pre-dividend excess common equity tier 1 capital of $94
Slide 4: Key operational metrics and COVID-19 response
FY20 RESULTS PRESENTATION In a year like no other, financial metrics don’t necessarily tell the full story. In normal times, things like the capability of your people, the robustness of your core operations and processes, your underlying technology and core systems, and your ability to adapt, are al
Slide 5: Result highlights
FY20 RESULTS PRESENTATION To the result highlights - and starting with the balance sheet. We entered COVID-19 in a strong position, with a buffer of excess capital and the retained proceeds from the sale of Capital S.M.A.R.T. We have built on that over the course of the year, providing flexibility a
Slide 6: Group CFO
FY20 RESULTS PRESENTATION Robson Group CFO SUNCORP 1e) Suncorp Group | FY20 Results SUNCORP () 6
Slide 7: Key items impacting Group cash earnings
FY20 RESULTS PRESENTATION Thanks Steve and good morning everyone. Given the current environment, I wanted to start with briefly calling out some of the key items that have impacted the Group’s cash earnings, before the usual run through of the numbers. In addition to the adverse COVID-19 impact, whi
Slide 8: Impact of COVID-19
FY20 RESULTS PRESENTATION So, first up some colour on the impact of COVID-19. Excluding the impact of investment markets, the net profit and loss impact was broadly neutral for Insurance (Australia) and New Zealand, in line with our previous guidance. Insurance (Australia) was impacted by: − A benef
Slide 9: Insurance (Australia) gross written premium
FY20 RESULTS PRESENTATION Now to the run through of results, starting with Insurance (Australia) and the usual gross written premium waterfall. In Home, normalising for the ongoing remediation of the broker book and the new business embargo on landlord insurance, Home units were up 0.8% with gross w
Slide 10: Insurance (Australia) claims
FY20 RESULTS PRESENTATION Turning now to claims, where I have separated out the impacts of COVID-19 in the waterfall. The increase in Consumer was primarily driven by Motor claims costs, reflecting underlying inflation in the book and the trend towards higher cost repairs as cars become more technol
Slide 11: Investment portfolio
FY20 RESULTS PRESENTATION Moving on to the investment portfolio. The underlying yield on insurance funds was 1.7%, down on last year, but well ahead of our expected 60 to 80 basis points range above risk-free, driven by strong active performance management. The shareholders’ funds returned a positiv
Slide 12: New Zealand result
FY20 RESULTS PRESENTATION New Zealand delivered another good result despite a more normalised natural hazard year and the impact of customer remediation. FY20 gross written premium includes customer remediation provisions of NZ$18 million largely relating to the incorrect application of customer dis
Slide 13: Natural hazards and reinsurance program
FY20 RESULTS PRESENTATION Turning to natural hazards and as we confirmed at our July update – in what has been a materially worse than expected year of natural hazard events, we landed the natural hazard cost for FY20 in line with our allowance of $820 million. Moving on to our FY21 reinsurance prog
Slide 14: Group underlying insurance trading ratio
FY20 RESULTS PRESENTATION Now to the Group underlying insurance trading ratio, which improved significantly over the half, even after allowing for the net benefit of COVID-19, noting that risk margin is excluded from the calculation. Improved investment income over the half of 0.5%, reflects the inv
Slide 15: Banking & Wealth
FY20 RESULTS PRESENTATION Now to Banking & Wealth, which delivered a profit after tax of $242 million, down significantly on the prior period, from the higher collective provisions in response to the expected economic impacts of COVID-19. Home lending contracted 2.8% over the year, reflecting slow s
Slide 16: Collective provision and customer deferrals
FY20 RESULTS PRESENTATION Moving now to the collective provision, and we have maintained an appropriate degree of conservatism across both our economic assumptions and our modelling methodology. While our base case economic outlook has improved slightly since March, we continue to maintain a prudent
Slide 17: Group expenses
FY20 RESULTS PRESENTATION Now to Group expenses. The FY20 cost base includes $60 million of provisions associated with the pay and leave entitlements review flagged at the May update. The COVID-19 costs of $22 million reflect the net effect of both positive and negative items, the most notable of wh
Slide 18: Capital and dividend
FY20 RESULTS PRESENTATION Finally, moving on to capital. We have maintained a strong capital position with Group excess common equity tier 1 capital of $823 million, after adjusting for the final dividend. The Board has declared a fully franked final dividend of 10 cents per share. This gives a FY20
Slide 19: FY20 RESULTS PRESENTATION
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Slide 20: Bushfire resilience and community
FY20 RESULTS PRESENTATION Thanks Jeremy. Before I turn to the outlook and our priorities, I want to briefly touch on a matter that is dear to Suncorp’s heart. It’s hard to believe that just six months ago we were locked in debate about what should be done to protect our nation and its people from th
Slide 21: Outlook and priorities
FY20 RESULTS PRESENTATION So, let me now turn to the outlook and our priorities for the coming year. I don’t pretend to have a crystal ball. Around the world we've seen the folly of getting ahead of ourselves and thinking the worst is behind us. I’m also no medical expert so I can’t predict how like
Slide 22: Strategic priorities and operating model
FY20 RESULTS PRESENTATION So, like most other CEOs I’m not going to describe a range of targets and commitments for FY21. What I will describe is the opportunity we see, through the lens of COVID-19, to materially speed up the transformation of Suncorp to continue delivering for customers and shareh
Slide 23: Insurance transformation opportunities
FY20 RESULTS PRESENTATION This will start at the top of the Insurance business with the reinvigoration of our brand portfolio, ensuring that our brands have clear value propositions and are positioned to grow. Next, we are reviewing our marketing strategy and effectiveness. Our product set also need
Slide 24: Conclusion and questions
FY20 RESULTS PRESENTATION So, in conclusion, we are well set to navigate successfully through the short, medium and longer term. Our focus now is to continue capitalising on the opportunities that are emerging. Opportunities from new ways of working, and from new ways of interacting with customers.
Slide 25: FY20 RESULTS PRESENTATION
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Slide 26: FY20 RESULTS PRESENTATION
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