Suncorp Group Limited · ASX:SUN
Suncorp — Suncorp-Metway — Merrill Lynch Australian Investment Conference 2008
23 slides from Suncorp's conference presentation, Sep 10, 2008
Slide 1: Suncorp-Metway Ltd – Merrill Lynch Australian Investment Conference
For personal use only Suncorp-Metway Ltd Chris Skilton, CFO Merrill Lynch Australian Investment Conference 9 September 2008
Slide 2: Agenda
Agenda For personal use only 1. Overview of Suncorp & the Australian economy 2. Summary of results • Banking • General Insurance (P&C) • Wealth Management • Capital 3. Integration & outlook 4. Questions 2
Slide 3: Suncorp at a glance
Suncorp at a glance For personal use only • Group total assets in excess of A$94bn • Our products and services reach over 35% of Australian households • Australia’s largest P&C insurer with GWP of over A$6bn • Australia’s 6th largest listed bank with assets of A$74.6bn • Wealth Management business w
Slide 4: Suncorp's History
Suncorp’s History 1996 For personal use only merger created “Metway Bank” “Suncorp Metway” Listed on ASX* in 1988 (previously Metropolitan Permanent Building Society) 2001 acquired “GIO” general insurance “Suncorp” GOC**. Renamed in 1986. (previously SGIO Insurance) 2007 acquired “QIDC” “Promina” Bu
Slide 5: Australian economic environment
Australian economic environment For personal use only Population growth & GDP Unemployment rate 0.80% 270,000 9.5 0.70% 8.5 250,000 0.60% 7.5 230,000 0.50% 6.5 0.40% 210,000 % 5.5 0.30% 190,000 0.20% 4.5 170,000 0.10% 3.5 0.00% 150,000 2.5 Mar-2000 Mar-2007 Mar-1995 Mar-1996 Mar-1997 Mar-1998 Mar-19
Slide 6: Agenda
Agenda For personal use only 1. Overview of Suncorp & the Australian economy 2. Summary of results • Banking • General Insurance (P&C) • Wealth Management • Capital 3. Integration & outlook 4. Questions 6
Slide 7: Full year result to June 2008
Full year result to 30 June 2008** For personal use only Wealth Banking P&C Management PBT PBT Underlying profit after $633m (+11.2%) $307m (-74.9%) tax* $136m (-9.3%) Net interest income Net earned premium Life risk annual premium $1,030m (+13.2%) $5.9bn (+2.5%) $683m (+11.4%) Cost to income ratio
Slide 8: Banking – asset growth
Banking – asset growth A$bn For personal use only Retail lending Business lending 17.1 growth growth 13.1% 29.7% 10.1 5.6 5.9 5.6 3.8 3.6 2.4 0.9 QLD housing Interstate Consumer Commercial Corporate Development Property Lease Agribusiness loans housing loans loans (SME) Finance Investment Finance Ju
Slide 9: Banking – credit quality
Banking – credit quality 1.68% For personal use only 1.49% 1.41% 1.46% Impaired assets to 1.32% 1.11% 1.12% 1.06% 0.95% gross loans 0.69% 0.70% 0.60% 0.45% 0.51% 0.35% 0.13% 0.23% 0.18% 0.20% 0.10% 0.16% 0.13% 0.16% 0.06% 0.08% 0.09% Gross Non-Performing loans, % of gross loans Impairment Losses, %
Slide 10: Banking – funding portfolio, June 2008
Banking – funding portfolio, June 2008 For personal use only Retail funding accounts Total wholesale funding A$37bn for 42% of total funding Short-term wholesale Securitisation corporates RMBS term 2% 12% Securitisation warehouse RMBS Short-term 5% wholesale banks Offshore private 13% placement 2% T
Slide 11: P&C – Australia's largest general insurer
P&C – Australia’s largest general insurer A$m For personal use only Australian GWP Commercial GWP half on half SUN 2,951 IAG 2,844 2,827 2,800 2,811 Other 2,683 QBE 1,480 1,317 1,279 Personal GWP Other SUN QBE 30-Jun-07 31-Dec-07 30-Jun-08 IAG Suncorp IAG QBE Source: Company data, APRA, Suncorp esti
Slide 12: P&C – premium growth by product
P&C – premium growth by product For personal use only A$m GWP by product 2,106 4.7% 2,206 1,290 7.8% 1,391 1,569 2.5% 1,608 758 (11.3%) 674 Jun-07 Jun-08 Other Workers' Comp CTP Commercial Home Motor Including discount rate adjustment and fire services levy 12
Slide 13: P&C – events and claims inflation
P&C – events and claims inflation Date Event A$m A$m For personal use only MAJOR EVENTS July 2007 Floods in New Zealand 20 Oct 2007 Storms in Lismore 60 Dec 2007 Storms in Sydney 170 Dec 2007 Earthquake in New Zealand 5 Dec 2007 Storms in Melbourne 25 Feb 2008 Storms in Mackay 100* Apr 2008 Wind sto
Slide 14: Wealth Management – new business sales
Wealth Management – new business sales For personal use only A$m Sales Investment sales 16 174 100 15 44 346 25 466 17 13 12 12 544 388 23 25 Jun-07* Jun-08 Jun-07* Jun-08 Term & TPD Trauma Superannuation Pensions Disability income Group Investment * Pro-forma 14
Slide 15: Capital position
Capital position For personal use only 30 June 2007 30 June 2008 Target Bank Capital Adequacy Ratio 9.86% 10.44% 10.0%-10.5% Bank ACE 5.04% 4.58% 4.5%-5.0% GI MCR Coverage 1.73x 1.68x 1.53x (0.19%) 0.72% (2.34%) 0.94% 1.98% (0.20%) (1.37%) 5.04% 4.58% ACE June Equity Bank earnings Integration Intra-
Slide 16: Agenda
Agenda For personal use only 1. Overview of Suncorp & the Australian economy 2. Summary of results • Banking • General Insurance (P&C) • Wealth Management • Capital 3. Integration & outlook 4. Questions 16
Slide 17: Well on track to realise integration synergies
Well on track to realise integration synergies A$m For personal use only Integration costs and benefits Expense management P&L view • A prudent approach to expense management 317 325 241 • Target further Group savings 316 288 • Further business unit specific 104 initiatives 103 • Savings tracked and
Slide 18: The Bank – focus and outlook
The Bank – focus and outlook 2008-2009 For personal use only Outlook Customer service PBT & bad debts Amongst highest in high single digit growth customer satisfaction ratings Focus on improved net interest margin David Foster Control of expenses leads combined bank Distribution Cost base Focus on d
Slide 19: P&C – focus and outlook
P&C – focus and outlook 2008-2009 For personal use only Outlook New Zealand ITR including integration Focus on retention of 10% - 12% profitable business Growth in GWP 4% - 6% Roger Bell New Zealand No material structural Bernadette Inglis releases personal lines Mark Milliner Personal lines commerc
Slide 20: Wealth Management – focus and outlook
Wealth Management – focus and outlook 2008-2009 For personal use only Outlook Product Underlying profit Growth in life risk flat offering Investment market volatility to continue Geoff Simplification of Summerhayes business model leads Wealth Management Distribution Cost base Product innovation – Ma
Slide 21: Suncorp-Metway Ltd – Questions
For personal use only Suncorp-Metway Ltd Chris Skilton, CFO Merrill Lynch Australian Investment Conference 9 September 2008
Slide 22: Disclaimer
Disclaimer For personal use only This report contains general information which is current as at 9 September 2008. It is not a recommendation or advice in relation to Suncorp-Metway Limited or any product or service offered by the Suncorp Group. This report should be read in conjunction with all oth
Slide 23: Investor Relations Contacts
Investor Relations Contacts For personal use only Karen Cush karen.cush@suncorp.com.au Tel: +61 (0)7 3836 1960 Nicole Marques nicole.marques@suncorp.com.au Tel: +61 (0)7 3835 5797 Mark Ley mark.ley@suncorp.com.au Tel: +61 (0)7 3835 5639 www.suncorp.com.au
Suncorp-Metway — Merrill Lynch Australian Investment Conference 2008 on 6ix