• Suncorp-Metway Limited
• Website: www.suncorpmetway.com.au

Industry:

Insurance

Fiscal Year-End:

Jun 10

Suncorp is a diversified financial services group, providing a range of banking, investment and insurance products. It has a strong geographic presence along the eastern seaboard of Australia and is the nation’s second largest general insurer. Although SUN’s banking presence is still predominantly in Queensland, it has embarked on a strategy to materially expand its interstate branch network. In a "normal" year, SUN’s insurance business is expected to contribute about 60% of group earnings.

The Suncorp-Metway Group was formed on 1 December 1996 from the merger of three Queensland financial institutions: Suncorp; Metway Bank; and QIDC (Queensland Industry Development Corporation). The merger created a diversified financial services group, incorporating banking, insurance and wealth management. In June 2001, SUN acquired GIO, AMP's Australian general insurance business. On 2 July 2001, the ASX code changed from SME to SUN. In March 2007, SUN merged with general insurer Promina.

SUN provides a range of banking, general insurance, life insurance and wealth management products and services. It is a key player in retail banking in Queensland (its home state) and the dominant player in the Queensland Compulsory Third Party (CTP) market, with over 50% market share. Outside Queensland, the company has operated its insurance business under the GIO brand name; however, following the Promina acquisition, SUN has a much broader portfolio of insurance brands.

SUN's "Financial Conglomerate" business model differentiates it from other financial services groups in that it provides a good diversity of earnings from traditional banking businesses, wealth management products and general insurance. The SUN brand has a strong presence in the Queensland market, while the GIO and individual Promina brands are well recognised in NSW. The diversity of businesses provides SUN with a unique opportunity to cross-sell products across its various customer bases.

SUN's customers range from small retail clients to small to medium businesses. Banking products include savings, lending and transaction products. In general insurance, SUN offers personal product lines in Home, Motor and CTP plus Workers Compensation and various commercial lines. In banking, its customers are mainly in Queensland, while it has strong general insurance market shares in Queensland, NSW and Victoria. Competitors include IAG, QBE and Allianz plus banks such as BOQ and the majors.