Company news: Suncorp
Suncorp released a downgrade to its expected underlying insurance margin for the half ending 31-Dec-15. It is now forecast to be 10%, versus 14.8% for the prior comparable period, and an ongoing target of 12%. The main driver was increased claim costs in personal and commercial lines, with an increase in the natural hazards allowance and lower investment returns also impacting. The lower margin will lead to a lower profit for the company. The company is implementing operational changes to bring its claims costs under control and remains committed to its 12% insurance margin for FY-16.