Slide 1: Financial results for the year ended 30 June 2012
Presentation Financial results for the full year ended 30 June 2012 For personal use only Suncorp Group Limited Financial results for the year ended 30 June 2012 1 Financial results for the year to 30 June 2012 22 August 2012 Introduction Patrick Snowball Chief Executive Officer Suncorp Group Ltd 2
Slide 2: Agenda and FY12 result overview
Presentation Financial results for the full year ended 30 June 2012 Suncorp Results Presentation Agenda For personal use only Results and operational highlights Patrick Snowball CFO Report • Group Capital • Core Business Line results John Nesbitt (General Insurance, Core Bank, Life) • Non-core Bank
Slide 3: Top line growth and margins improving or stable
Presentation Financial results for the full year ended 30 June 2012 Top line growth Growth across all three business lines ($m) For personal use only General Insurance GWP Suncorp Life Individual in-force business 9.3% 722 7,955 7.9% 623 7,027 FY10 FY11 FY12 FY10 FY11 FY12 Core Bank Lending assets S
Slide 4: Operating expenses and core business profitability
Presentation Financial results for the full year ended 30 June 2012 Operating expenses Ongoing focus on cost control ($m) For personal use only 2,513 2,490 2,483 • Expenses have fallen while delivering top line growth 297 299 271 546 568 597 • Significant transformational change within the business
Slide 5: Non-core Bank reduced and FY12 summary
Presentation Financial results for the full year ended 30 June 2012 Non-core Bank has significantly reduced.... Non-core Bank ($bn) Suncorp Bank split by portfolio For personal use only 14 Non-performing loans 12 Performing loans Non-core 2.1 9% Agri 10 8% 39% 8 Commercial down 11% 2.4 Mortgage 6 Co
Slide 6: Dividend and capital
Presentation Financial results for the full year ended 30 June 2012 For personal use only Financial Results John Nesbitt Chief Financial Officer 11 Financial results for the year to 30 June 2012 22 August 2012 Dividend and capital Capital initiatives Dividend (cps) • Final dividend of 20cps Interim
Slide 7: General Insurance overview and Gross Written Premium
Presentation Financial results for the full year ended 30 June 2012 General Insurance overview Underlying ITR of 12.1% For personal use only $m FY12 %∆ General Insurance profit after tax 493 25.8 • GWP up 9.3% on a reported basis • Delivered 3% improvement in Underlying ITR • Natural hazard claims a
Slide 8: Underlying ITR and Core Bank overview
Presentation Financial results for the full year ended 30 June 2012 Underlying ITR Delivered 3% improvement in underlying ITR For personal use only 13.1% FY12 12.1% 11.2% FY11 10.8% 11.1% 10.0% 10.5% FY10 9.0% Movement in 1H 8.0% Movement in 2H 1H10 2H10 1H11 2H11 1H12 2H12 15 Financial results for
Slide 9: Core Bank lending and Suncorp Life overview
Presentation Financial results for the full year ended 30 June 2012 Core Bank lending Strong growth in core markets For personal use only FY12 Product %∆ Comments ($bn) Retail Ability to capture market share and good (mortgages and 34.4 9.1 growth across channels & regions. consumer) Strengthening b
Slide 10: Life new business by channel and Non-core Bank
Presentation Financial results for the full year ended 30 June 2012 Life new business by channel Strong results in major business areas For personal use only FY12 Channel %∆ Comments ($m) Combining continued market leading capabilities with IFA 62 10.7 innovative product design Direct 30 30.4 Increa
Slide 11: Financial Results / Conclusion
Presentation Financial results for the full year ended 30 June 2012 For personal use only Financial Results John Nesbitt Chief Financial Officer 21 Financial results for the year to 30 June 2012 22 August 2012 Conclusion Patrick Snowball Chief Executive Officer Suncorp Group Ltd 22 Financial results
Slide 12: Conclusion
Presentation Financial results for the full year ended 30 June 2012 Conclusion Growth and strength despite global and domestic challenges For personal use only • Quota-share arrangement has reshaped the risk profile of General Insurance • Underlying ITR target to „meet or beat‟ 12% • Price increases
Slide 13: The Suncorp journey and Contacts
Presentation Financial results for the full year ended 30 June 2012 The Suncorp journey For personal use only FY13 - FY15 Reset targets and drive for growth FY12 - FY14 Improve Life EV Identify further Core Banking opportunities to Commercial Insurance FY12 - FY13 drive value Accelerate & embed simp
Slide 14: Important disclaimer
Presentation Financial results for the full year ended 30 June 2012 Important disclaimer For personal use only This presentation contains general information about Suncorp Group Limited („Suncorp‟) which is current as at 22nd of August 2012. It is information given in summary form and does not purpo
Slide 15: Building blocks delivering
Presentation Financial results for the full year ended 30 June 2012 Building blocks delivering Contributing to 3%+ improvement in underlying GI margin For personal use only FY12 benefits delivered FY13 estimate 250 $200m $235m 200 Pricing Benefits 150 100 50 Claims Benefits 0 Project costs (50) 2009
Slide 16: Dividend and capital; natural hazards over 45 years
Presentation Financial results for the full year ended 30 June 2012 Dividend and capital Capital update Movement in capital excess to operating targets ($m) For personal use only • Strong capital position supports growth in core businesses 266 • Payout ratio of 62.4% results 476 in $210 million of r
Slide 17: Natural hazards FY12 and allowances
Presentation Financial results for the full year ended 30 June 2012 Natural hazards FY12 Fewer catastrophes, but the rain kept falling For personal use only 33 Financial results for the year to 30 June 2012 22 August 2012 Natural hazards allowances 6.74%* 600 NH allowance NH % of GWP 6.32% 6.29% $40
Slide 18: FY13 Reinsurance program
Presentation Financial results for the full year ended 30 June 2012 FY13 Reinsurance program Property catastrophe program For personal use only AUD 6.1bn Reduction in upper limit of catastrophe program due to quota share 5.3bn 2.5bn 500m 2nd Reinstatement Original cover 1st Reinstatement (paid as pr
Slide 19: Core Bank credit quality
Presentation Financial results for the full year ended 30 June 2012 Core Bank - credit quality Non-performing loans ($Am) For personal use only Impaired assets > 90 days past due SME & Agribusiness > 90 days past due retail 269 236 250 299 167 230 161 231 165 175 174 126 114 57 65 62 63 76 75 66 87
Slide 20: Non-core Bank impaired asset portfolio
Presentation Financial results for the full year ended 30 June 2012 Non-core Bank Impaired asset portfolio has exhibited significant turnover since inception For personal use only Portfolio run-off & impaired turnover(1) $bn Impaired 1.3 2.1 Performing 2.0 Impaireds turnover 2.3 16.2 2.2 13.6 2.2 1.
Slide 21: Non-core Bank provision coverage and impaired asset turnover
Presentation Financial results for the full year ended 30 June 2012 Non-Core Bank Provision coverage and impaired asset turnover in under-performing market segments For personal use only Coverage & coverage gross up(1) Impaired asset turnover(2) Provision coverage 35% Coverage Gross-up 32% 33% 27% 2