Slide 1: Financial results for the half year ended 31 December 2011
Financial results Presentation for the half year ended 31 December 2011 For personal use only Suncorp Group Limited Financial results for the six months to 31 December 2011 Financial results for the six months to 31 December 2011 22 February 2012 1 Suncorp Results Presentation Agenda • Results and o
Slide 2: Result overview and result highlights
Financial results Presentation for the half year ended 31 December 2011 Result overview Improved Group profitability For personal use only 1H12 1H11 % General Insurance NPAT 162 292 (44 5) (44.5) Core Bank NPAT 156 110 41.8 Non-core Bank NPAT (54) (107) (49.5) Suncorp Life NPAT 133 61 118% Business
Slide 3: Top line growth and operating expenses
Financial results Presentation for the half year ended 31 December 2011 Top line growth Growth across all three business lines (A$m) For personal use only General Insurance Suncorp Life GWP Individual in-force business 693 7.9% 3,855 8.2% 642 3,563 602 3,490 1H10 2H10 1H11 2H11 1H12 1H10 2H10 1H11 2
Slide 4: Underlying ITR trends
Financial results Presentation for the half year ended 31 December 2011 Underlying ITR trends Second half historically shows greater improvement For personal use only 11.2% 11.1% FY11 10.8% 10.5% 10.0% FY10 9.0% Movement in 1H 7.9% Movement in 2H 1H10 2H10 1H11 2H11 1H12 Financial results for the si
Slide 5: Capital management and capital position
Financial results Presentation for the half year ended 31 December 2011 Capital management under the NOHC Group capital buffer is the excess over operational capital targets For personal use only Ordinary dividend Surplus returned to Shareholders shareholders 100% of distributable earnings Non-core
Slide 6: Dividend and capital; Group investments
Financial results Presentation for the half year ended 31 December 2011 Dividend and capital Capital update For personal use only Movement in surplus capital • Redeemed $293m in subordinated debt and reset $1,245m ($293m) preference shares $132m $1,182m , • Increased interim dividend • Midpoint of t
Slide 7: Impact of market movements on investments
Financial results Presentation for the half year ended 31 December 2011 Suncorp Group investments How market movements impact Suncorp Group For personal use only Impact of lower discount rates Impact of widening credit spreads General Insurance technical reserves General Insurance technical reserves
Slide 8: General Insurance overview
Financial results Presentation for the half year ended 31 December 2011 For personal use only General Insurance John Nesbitt b Chief Financial Officer Financial results for the six months to 31 December 2011 22 February 2012 15 General Insurance overview Underlying ITR of 11.1% A$m HY12 % General In
Slide 9: Gross Written Premium and natural hazard costs
Financial results Presentation for the half year ended 31 December 2011 Gross Written Premium GWP up 8.2% For personal use only HY12 Product % Factors (A$m) Motor 1,284 1.7 Solid premium and price leadership Significant premium increases through Home 1,093 15.9 targeted risk selection Rate increases
Slide 10: Natural hazards history and FY12 reinsurance program
Financial results Presentation for the half year ended 31 December 2011 Natural hazards over the past 45 years Long-term catastrophic loss experience For personal use only Events greater than $100m, gross of all reinsurance 4,000 3,500 NZ AUS Long Run Average 3 000 3,000 2,500 2,000 1,500 1,000 500
Slide 11: Underlying ITR
Financial results Presentation for the half year ended 31 December 2011 Underlying ITR Improvement in underlying ITR from 9% FY10 and 10.5% 1H11 For personal use only ($4m) ($43m) $141m $149m $372m $129m 3.8% 11.1% 11.1% 10.8% HY12 Reported ITR Natural hazards Investment income Reserve releases Othe
Slide 12: Core Bank overview
Financial results Presentation for the half year ended 31 December 2011 Core Bank overview Improved result in challenging conditions For personal use only A$m HY12 % Core Bank profit after tax 156 41.8 • Returned to above system home lending growth • Deposit to lending ratio at 69.4% • Maintained ‘A
Slide 13: Core Bank credit quality and lending assets
Financial results Presentation for the half year ended 31 December 2011 Core Bank - credit quality Core impairment losses ($Am) For personal use only HY12 FY11 Collective provision charge (6) 16 Specific p provision charge p g 13 32 Actual net write-offs 2 3 Impairment loss on loans and advances 9 5
Slide 14: Non-core Bank overview and portfolio composition
Financial results Presentation for the half year ended 31 December 2011 Non-core Bank overview Improved result in challenging conditions For personal use only A$m HY12 % Non-core Bank loss after tax (54) (49.5) • Portfolio reduced to $5.7bn • Impaired assets of $2.16bn, down from $2.24bn • Match fun
Slide 15: Non-core credit quality and Bank liquidity
Financial results Presentation for the half year ended 31 December 2011 Non-core Bank – credit quality Non-core impairment losses ($Am) For personal use only HY12 FY11 Collective provision charge (5) (40) Specific provision charge 115 297 Actual net write-offs 12 17 Impairment loss on loans and adva
Slide 16: Suncorp Life overview
Financial results Presentation for the half year ended 31 December 2011 For personal use only Suncorp Life John Nesbitt b Chief Financial Officer Financial results for the six months to 31 December 2011 22 February 2012 31 Suncorp Life overview Underlying profit up 15% A$m HY12 % Life profit after t
Slide 17: Suncorp Life Embedded Value and growth
Financial results Presentation for the half year ended 31 December 2011 Suncorp Life Embedded Value Embedded Value 3.7% to $2.46bn For personal use only ($173m) $246m $20m ($6m) $94m ($59m) ($34m) $2,377m $2,505m $2,465m Jun-11 Expected Experience Discount Rate Economic Value of New EV pre Dividends
Slide 18: Balance sheet strength and conclusion
Financial results Presentation for the half year ended 31 December 2011 Suncorp Group Balance sheet continues to strengthen For personal use only • Return on equity remains too low • Core Bank is delivering the targeted 15% RoE • Non-core Bank has a negative RoE but is contributing to the surplus ca
Slide 19: Important disclaimer
Financial results Presentation for the half year ended 31 December 2011 Important disclaimer For personal use only This presentation contains general information about Suncorp Group Limited (‘Suncorp’) which is current as at 22 February 2012. It is information given in summary form and does not purp