Today Suncorp Group Ltd [ASX:SUN] shares grew value by 2.49%, now trading at $13.08 a share.
Despite their slight growth, they were in a better state December last year, trading at $14.44 a share.
Suncorp Group provides insurance and banking services in Australia and New Zealand.
Their market cap stands at $17.75 billion and enterprise value at $38.72 billion.
Last month they dropped in shares by a staggering 15.8% due to investing in the impact of the Victorian hail storm.
Suncorp has been heavily focused on strong customer service to help overall line performance.
Hail storm claims and how it impacted
Last year Suncorp flagged a cost of about $160–$170 million in its first-half results.
A huge surge of insurance claims also took place regarding Melbourne’s hailstorm, which occurred back in December last year.
Suncorp stated the total natural hazard claim costs New Zealand and Australia for the second half of 2017 (to December) was evaluated to be between $406 million and $416 million.
Raskmedia reported that Suncorp CEO Michael Cameron stated:
‘Our work over the past 18 months on driving efficiencies in our claims processes, improvements in our customer experience, a hardening insurance market and our strategic investment programs, position the business well for the second half.’
Cameron believes Suncorp will bring an improved second half of 2018.
Suncorp’s future outlook
Suncorp is confident there will be an increase in performance during financial years 2019 and 2020.
Suncorp management feel that the company will eventually improve its margins.
Their overall plan for the future will focus on increasing the dividend payout ratio as well as excess capital returning to shareholders.
For Money Morning
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