The spate of natural disasters in Queensland earlier this year has shredded 42 per cent off Suncorp’s net profit, reducing the company’s net profit to $483 million after the company processed over 100,000 claims relating to floods, Cyclone Yasi and earthquakes. The massive hike in insurance claims was about $600 million more than the company had provided for.

 

The pressures on the company’s insurance arm had led to a drop of 30 per cent in the section’s profitability.

 

Despite the drop in profits, the company beat market expectations and is maintaining the company’s 35 cents a share full-year dividend. Suncorp CEO Patrick Snowball said that his company’s performance in the wake of the natural disasters was evidence of the its substantial improvement as a business.

 

The company has posted three consecutive premium price rises in the recent 18 months, most of which were as a response to the natural disasters in Queensland.

 

The announcement comes as the company moved to single general ledger system and adopted a single customer database.