Page 18 - Australasian Paint & Panel Magazine Sep-Oct 2018

NEWS
IAG PROFITS UP
IAG MANAGING DIRECTOR and chief executive officer Peter Harmer pronounced the company’s 2018 full year results as “solid”. Insurance profit climbed 10.8 per cent, rising from $1.27 billion in FY17 to $1.407 billion in FY18.
“This is a solid result for IAG with an encouraging improved underlying
performance, in line with our expectations,” Harmer said.
“We also announced the sale of our operations in Thailand, Indonesia and Vietnam, which are expected to complete in FY19 and deliver a net profit after tax in excess of $200 million.
“Overall, we are making sound progress in our efforts to transform IAG into a company able to anticipate, respond to, and satisfy the needs of all those who rely on us – our customers, our people, the communities we help, and the shareholders who support us. Success allows us to continue to invest in the services, products and experiences our customers and the community want and need.
“Our purpose is to make your world a safer place. We focus our energy around three priorities: customer, simplification and agility, building on organisational capabilities that will enable us to succeed now, and thrive in an unpredictable future. We are using our purpose to create meaning for IAG’s people and support organisational performance, and we are acting responsibly to build and maintain trust, including addressing social and environmental issues important to our stakeholders.”
STRONG
SUNCORP
RESULTS
Suncorp has announced a net profit after tax (NPAT) of $1,059 million, a 34 per cent increase on the first half of 2018.
Suncorp said the result was driven by stronger second half performance, reflecting the early benefits of its strategy. The firm’s Australian insurance division reported a net profit after tax of $739 million – a 2.2 per cent increase on last year and a 79.9 per cent increase compared to the first half of the financial year.
CFO Steve Johnston said, “Motor claims has been the main focus of the FY18 program. Here we are simplifying claims experience for our customers
and deepening relationships with key suppliers, as well as driving more volume through SMART and our fixed cost repairer network”.
Insurance (Australia) delivered NPAT of $739 million. Motor and Home portfolios have performed strongly with GWP growth of 4.7 per cent, and claims performance at better than industry levels.
New Zealand achieved NPAT of $135 million, reflecting premium growth, unit growth, good claims management and expense control.
Suncorp CEO and managing director Michael Cameron said that the strong performance in the second half is driving momentum for FY19.
“Six months ago, we committed to a stronger second half, as the benefits of our strategy begin to flow through, and I’m pleased to report a 34 per cent uplift on NPAT on the first half. This result is a direct outcome of the repositioning programs we have implemented over the past two years. We are now beginning to see momentum, to deliver a further uplift in shareholder returns in FY19,” he said.
MOTORING CLUBS TRUSTED FOR INSURANCE
TWO NEW STUDIES have revealed that RACQ and RAC WA are Australia’s most recommended brands in motor and property insurance respectively for 2018.
The two studies conducted by Engaged Strategy each surveyed over 1,600 Australian motor and property insurance customers. The motor insurance study found that industry leader RACQ achieved a Net Promoter Score of positive 40 per cent. This was substantially higher than the category average of positive eight per cent, with the lowest performing brand achieving a low Net
Promoter Score of negative 14 per cent.
Engaged Strategy managing director Christopher Roberts explains that brands like RACQ and RAC WA understand that
insurance as a product is for peace of mind in case something happens, but how these brands win is by offering their members more added value right now. Other insurance brands have started to offer discounts on a variety of goods and services, but nobody owns this territory better than motoring clubs. Their entire legacy began as ‘member’ organisations, as opposed to ‘commercial’ brands that also offer discounts. “Being the most recommended brand in this category
is not just about insurance features and service. Offering
their members more than simply insurance was the key to creating a clear
positive point of difference that enabled their members to
promote their brand,” Roberts said.
18 PAINT&PANEL September / October 2018
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