At the Suncorp AGM yesterday shareholders were assured the company's investment in digital technology was set to reap rewards in the form of lower cost and increased operational efficiency in FY20. Early on, however, shareholders approved a resolution to distribute the remaining surplus capital from the sale of the Australian Life business, amounting to A$506 million. This took the form of 39 cents per share return of capital with a related share consolidation. This was in addition to the special dividend of 8 cents per share fully franked, paid in May from the proceeds of the sale. The meeting was reminded that cash earnings for FY19 were $1.115 billion. In contrast, net after-tax profit was $175 million. "The difference between the two is accounted for by the loss on the sale of the Life insurance business, which was concluded in February this year," Steve Johnston, Suncorp's newly appointed group chief executive officer, said. Johnston also told the company's shareholders that Insurance Australia, the group's largest division, delivered profit after tax of $588 million. "This result was impacted by major events, including the Townsville floods in January this year and Sydney hailstorm in December 2018," Johnston said. "Over the past decade we have seen a steady increase in the frequency and severity of natural hazard events and this has seen us exceed our allowance for events far too often. The AGM was taken through the board and management plan for FY20, aimed at improving the performance of its insurance and banking businesses. For insurance this means: •    reinvigorating Suncorp's multi-brand strategy; •    adding more discipline to its underwriting; •    developing new and innovative products; and •    using reinsurance to reduce earnings volatility. "It was clear that we had to take action to improve the quality and predictability of earnings. So, for FY20, we have increased our allowance for natural hazards from $720 million to $820 million and also purchased reinsurance, providing an additional $200 million of cover above that." Suncorp's banking and wealth business delivered profit after tax of $364 million; slightly down on the prior year, reflecting the slowdown in the housing sector and increased competition in mortgages and deposits. "Regulatory and remediation costs, remained elevated at $155 million," Johnston said. However, he was setting out a change in approach: "With the Royal Commission behind us, we are implementing regulatory change and looking forward - seeing the new standards as an opportunity rather than a burden or an imposition." For the bank Johnston said his team's further focus will be on: •    building digital products and functionality; •    preparing for open banking; •    'winning' in their home market of Queensland; •    improving service to brokers; and •    maintaining high credit standards. "Over the past two years we have invested heavily in digital capability and improved our ability to use and analyse data. It's now time to leverage that investment," Johnston said.