Suncorp hopes to increase insurance premiums
Bad weather played havoc with Suncorp's general insurance business, whose pre-tax profit fell 75 per cent to $172 million. Volatile markets were another factor. Income from the investment of premium income fell 86 per cent to $28 million. Suncorp chief financial officer Chris Skilton said that after several years of "highly favourable claims experience" claims had started to increase at a rate greater than the average weekly earnings index - a danger sign for the industry.Skilton said he was confident that Suncorp could get away with "high single digit" increases in personal lines premium prices this year. Suncorp chief executive John Mulcahy said he was happy with the underlying trend in the insurance business, where growth in premium income in segments such as motor and home was above system.