Suncorp revenue up, drops vacation coverage

Suncorp will halt underwriting travel insurance policy for Australians in the wake of the coronavirus

Suncorp will halt underwriting travel insurance policy for Australians in the wake of the coronavirus pandemic to emphasis on its even bigger operations.

It will also stop supplying particular loans in favour of growing its additional financially rewarding residence lending business.

“The economic effect of these exits is immaterial,” Suncorp reported in a statement on Tuesday.

Its vacation insurance coverage portfolio of about $6 million in complete premiums is now remaining run-off.

Present travel coverage policyholders are not influenced by the selection.

The journey sector has been beneath tension due to the fact global borders were shut because of to the unfold of the virus.

The banking and insurance policy group reported hard cash earnings of $509 million for the to start with 50 % of 2020/21, up 39.5 for every cent.

Investors will receive a completely franked interim dividend of 26 cents per share. This is the same volume as the former interim payout.

Explaining the dividend amount of money, the enterprise claimed a potent cash placement would enable through instances of uncertainty.

The Australian Prudential Regulation Authority late previous yr reiterated tips to money services vendors to average dividends so they are sustainable.

Suncorp mentioned the overall affect of COVID-19 on its outcomes was “broadly neutral” due to the fact company interruption promises had been primarily offset by lessen claims frequency.

CEO Steve Johnston indicated the very good news need to proceed into the 2nd half of the economic 12 months.

“Suncorp enters the 2nd half of FY21 in superior condition, with momentum beginning to construct throughout our organizations and our equilibrium sheet remaining extremely powerful,” he explained.

Shares ended up better by 2.92 for each cent to $10.74 at 1504 AEDT.