Annual 2007 Review We help people build and protect Annual Review 2007 www.suncorp.com.au their dreams 08377 01/09/07A Annual Review 2007 Contacts Purpose Values We help people build and protect their Trust: Keeping our promises dreams. Registered Office Australian Pensioners Insurance Agency (Apia) Victoria Honesty: Talking straight, being genuine Suncorp-Metway Ltd Ph: 13 50 50 Camberwell and ethical Level 18 www.apia.com.au Cameron Walshe Camberwell 36 Wickham Terrace Email: [email protected] Ph: (03) 9813 1522 Vision Caring: Listening carefully to others, Brisbane Qld 4000 Just Car Insurance O’Connor Planning Pty Ltd To be the most admired financial working together to achieve shared goals Ph: (07) 3835 5355 Ph: 13 13 26 Ph: (03) 9813 1522 services organisation in Australia and Fax: (07) 3836 1190 www.justcarinsurance.com.au Respect: Treating individuals with dignity Email: [email protected] North Carlton New Zealand. www.suncorp.com.au Moran Management Services Fairness: Treating people justly and Email: [email protected] Shannons Ph: (03) 9482 3122 or Ph: (03) 9553 1743 Together with our shared human values equitably Ph: 13 46 46 Suncorp www.shannons.com.au New Zealand and culture they form the foundation of General enquiries 13 11 55 Vero Insurance New Zealand Limited our organisation. Courage: Taking accountability for Asteron Vero Insurance New Zealand is made up of results, being up front about mistakes Quickcall phone banking 13 11 25 Ph: Asteron Wealth Solutions a number of specialist insurance and risk and taking considered risks Insurance sales and Optimum & Wealthstar management businesses serving both businesses enquiries 13 11 55 – 1800 819 499 and individuals. Connelly Temple & Workforce Insurance claims 13 25 24 – 1300 361 755 Ph: 0800 808 508 Email: [email protected] Contents Loan hotline 13 11 55 www.asteron.com.au www.vero.co.nz Suncorp – an enhanced portfolio Our people 38 Lost or stolen cards Asteron Life Solutions Vero Marine Insurance Limited & passbooks 1800 775 020 1800 221 727 Ph: 0508 856 856 of market-leading brands 2 Our community 42 Email: [email protected] www.veromarine.co.nz Suncorp – an even stronger business 4 Sustainability 46 Life and risk insurance Financial highlights 6 Corporate governance statement 50 enquiries 13 11 55 Tyndall Vero Liability Insurance Limited Ph: 1800 251 589 Ph: +64 9 306 0350 Financial planning and Chairman’s letter to shareholders 8 Directors’ report 55 www.tyndall.com.au www.veroliability.co.nz Managing Director’s letter to shareholders 12 Lead auditor’s independence declaration 71 superannuation enquiries 13 11 55 Standard Pacific Vero Accident & Health Limited Group executive 18 Financial performance 72 Investment funds Ph: 1800 232 001 (Australia only) Ph: +64 4 470 8300 enquiries centre 1800 067 732 Board of directors 20 Concise financial report 73 +61 2 8275 3899 (International) www.veroaccident.co.nz Group operations 23 Financial statements and notes 78 Business banking 13 11 55 – Retail banking 24 Shareholder information 99 www.standardpacific.com.au Vero Consumer Insurance Specialists Share Trade 1300 135 190 Email: General Enquiries: Ph: 0800 505 905 – Business banking 26 Key dates 102 [email protected] Email: [email protected] – General insurance 28 Glossary 103 New sales enquiries / www.verocis.co.nz – Wealth management 34 Index 104 new customers for Guardian Financial Planning margin lending 1800 805 972 Ph: 1300 720 350 Vero Specialist Risks Limited Organisational structure 37 Contacts IBC www.guardianfinancialplanning.com.au Ph: +64 9 307 0103 Existing customer enquiries Email: [email protected] www.verosr.co.nz for Margin Lending 1800 805 972 Cameron Walshe Vero Commercial Motor incorporating Axiom GIO www.cameronwalshe.com.au/ Ph: +64 9 579 5794 General enquiries 13 10 10 www.verocmv.co.nz Western Australia www.axiom.co.nz Personal and Business Insurance 13 10 10 Bunbury Personal Insurance claims 13 14 46 Prophet Financial Advice AMP General Insurance Ph: (08) 9721 5444 Ph: 0508 806 244 Workers’ Compensation NSW www.amp.co.nz policies and claims 13 10 10 Fremantle Cameron Walshe Fremantle Comprehensive Travel Insurance Limited AAMI Ph: (08) 9335 3525 Ph: 0800 800 048 Ph: 13 22 44 Email: [email protected] www.aami.com.au Osborne Park www.comprehensive.co.nz Odyssey Financial Services If you need to contact AAMI from overseas, Ph: (08) 9208 1417 Autosure New Zealand Limited call 61 3 8520 1300 Ph: 0800 267 873 or email [email protected] Perth Email: [email protected] Cameron Walshe Perth www.autosure.co.nz Car Insurance Ph: (08) 9322 7818 CTP Insurance Mariner Underwriters Limited Home Insurance Subiaco Ph: 0800 360 1010 Business Insurance Pario Financial Management Email: [email protected] Ph: (08) 9382 3111 www.mariner.co.nz Annual Review 2007 VERO Vero Insurance Limited Guardian Trust The Annual Review incorporating the concise financial The concise financial report does not, and cannot Ph: 09 377 7300 report, financial statements and other specific be expected to, provide as full an understanding Ph: 13 18 13 Freephone: 0800 801 135 disclosures required by Accounting Standard AASB of the financial performance, financial position and Broker Relationship Team: 1300 797 337 1039 Concise Financial Reports is an extract of, and financing and investing activities of the Group as the www.nzgt.co.nz has been derived from Suncorp-Metway Ltd (‘the Consolidated Financial Report. www.vero.com.au Email: [email protected] Email: [email protected] Company’) and its controlled entities’ (‘the Group’) A copy of the Group’s Consolidated Financial Report, Consolidated Financial Report for the financial year. including the financial statements and the independent Personal Insurance Other information included in the concise financial audit report, is available to all shareholders, and will Business Insurance report is consistent with the Group’s Consolidated be sent to shareholders without charge upon request. Financial Report. Suncorp-Metway Ltd ABN 66 010 831 722 The merger of Suncorp and Promina in March has brought together two successful financial services groups, with a singular focus to become the leading diversified financial services provider in Australia and New Zealand. Shannons longtime customer George Borg from Medowie, NSW, is a lover of classic cars. Here he demonstrates the attributes of his Ford Mustang, one of several classic cars in his stable. Suncorp – Annual Review 2007 1 Suncorp An enhanced portfolio of market-leading brands 2 Enhanced consumer and business marketing capabilities: – Access to established and respected brands – Improved and widened product range – Extensive distribution networks across Australia and New Zealand – Ability to compete effectively in an increasingly competitive financial services market – Strong and experienced management teams implementing a customer focused strategy Suncorp – Annual Review 2007 3 Suncorp An even stronger business positioned for sustained profitable growth General Insurance Australia’s 3rd largest general insurance group Banking New Zealand’s 2nd Australia’s 6th largest largest general insurer bank Gross written premiums Total assets $61.2 billion $3.8 billion 2.1 0.3 6.0 2.3 15.4 7.5 6.6 5.7 19.3 18.1 21.7 24.2 Suncorp Promina 30.5 Merged group $2.9 billion $0.9 billion 21.9 23.4 + = $3.8 billion 27.8 36.8 GWP by class of business % 30.4 12 months Suncorp 20 March – 30 June 2007 Promina ■ CTP ■ Home ■ Motor ■ Commercial ■ Workers’ compensation ■ Other Source: company accounts 4 Corporate 16,319 FTE employees delivering superior customer outcomes Wealth Management 450 offices, branches and Australia’s 7th largest agencies across Australia life insurance business and New Zealand In force risk insurance Top 20 ASX company by premiums $673 million market capitalisation Funds under administration 223,000 Shareholders $16.5 billion Total assets $84.9 billion Funds under More than 7 million management $27 billion customers The merger of the successful Suncorp and Promina groups has established an even stronger business, focused on achieving significant synergies, delivering sustained growth and increasing shareholder value in the years ahead. Suncorp – Annual Review 2007 5 Financial highlights With its collective market capitalisation standing at $18 billion, the Group is well positioned for sustained and profitable long-term growth. $1.064b 16.2% increase in net profit after tax $569m $976m Bank profit contribution up General Insurance 12.5% in profit before tax consolidated profits $221m Wealth Management 44.4% increase in profit before tax 170c Cash earnings per share diluted $55m 10% Promina integration on Life risk new business track – $55 million in sales in NZ annual synergies locked in 6 S&P/ASX Top 50 Accumulation Index and SUN share price Return index including net dividends (Both indices rebased at 100 at 31/05/2002) 240 220 200 180 160 140 120 100 80 Suncorp share price S&P/ASX Top 50 Accumulation Index 60 Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun ‘02 ‘02 ‘02 ‘03 ‘03 ‘03 ‘03 ‘04 ‘04 ‘04 ‘04 ‘05 ‘05 ‘05 ‘05 ‘06 ‘06 ‘06 ‘06 ‘07 ‘07 Operating profit after tax ($m) Underlying profit ($m)* Dividends interim / final (c) 1,200 1,200 1200 1,149 80 1200 80 Interim 75 1,064 1,042 Final 70 70 1,000 1,000 1000 946 1000 916 882 60 60 55 800 800 800754 800 50 52 50 47 50 45 618 42 578 40 600 600 600 40 600 40 30 30 30 384 26 30 400 400 400 400 20 20 200 200 200 200 10 10 0 0 0 0 0 0 0 ‘03 ‘04 ‘05 ‘06 ‘07 ‘03 ‘04 ‘05 ‘06 ‘07 ‘02-03 ‘03-04 ‘04-05special ‘05-06 ‘06-07 * Suncorp standalone Suncorp – Annual Review 2007 7 Chairman’s letter to shareholders “ Against a backdrop Dear shareholder, of potentially The past year has been a very important period for Suncorp, with the successful completion of the diverting challenges, merger with Promina Group Limited.