DOUBLED PROFITS FOR SUNCORP

SUNCORP-METWAY Limited (SUN) has more than doubled its net profit result for FY10 to $780 million, with the lion’s share coming from the general insurance arm and the sale of assets.

The general insurance arm contributed $557 million to the result, while the company received $215 million pre-tax profit from the sale of interests in RACQ Insurance, RAA Insurance and its LJ Hooker subsidiary.

CEO Patrick Snowball (pictured) says Suncorp has made good progress in recovering from market challenges and hailstorms in Melbourne and Perth.

“Over the course of the financial year, we stabilised the group, strengthened its balance sheet and capital position, appointed a new executive team and laid the foundations for sustainable growth and profits by clarifying our strategic direction and restructuring operations,” he said in a statement to the ASX.

“The benefits of these initiatives can be seen in our solid headline result and the improved underlying performances of our businesses despite ongoing market volatility and the Melbourne and Perth hailstorms, two of the more costly weather events in Australian history.”

The Queensland bank recorded a $268 million NPAT for its core portfolio, but non-core assets incurred a loss of $224 million.