The Suncorp AGM, held as a virtual meeting yesterday, was uneventful, allowing chairman Christine McLoughlin and group chief executive Steve Johnston to deliver prepared speeches and deal with a handful of shareholder questions, mostly directed at how the company's insurance business is set for climate change.
The company said 496 shareholders were attending remotely, which McLaughlin said was close to the number that would have usually attended in person at its Brisbane HQ.
McLoughlin reminded shareholders that the group's net profit after tax was $1.03 billion, an increase of 13.1 per cent on the previous year. The result was driven by increased profit in the Australian insurance business and Suncorp Bank. Profit in New Zealand was down on the previous year, impacted by a range of factors including increased natural hazard costs.
"Given the strength of these results, your Board was pleased to declare a fully franked total ordinary dividend of 66 cents per share for the full financial year. This incorporated a final dividend of 40 cents per share, which was paid yesterday," she told shareholders.
Suncorp has also paid a fully franked special dividend of 8 cents per share and has launched an on-market share buyback of up to $250 million.
CEO Johnston noted that since his appointment two years ago, the group has been working to simplify its portfolio of asserts and products in the face of a range of natural disasters.
"Following the sale of the Australian Life business and Capital SMART in 2019, this year we announced the sale of our Wealth business to LGIAsuper, and we expect this will be finalised in early 2022," he said. "In July, we confirmed the sale of our 50 per cent interest in RACT Insurance in Tasmania."He said this process will lead to fewer metrics to distract management and staff.
"The changes we’ve made to reset our business, and our disciplined approach to achieving our plan through a singular focus on these initiatives, is delivering.
"As outlined at our full year result presentation in August, the group delivered growth in its core Australian insurance and bank businesses, resulting in a 42 per cent increase in group cash earnings after tax to $1.064 billion.
"In banking, our focus is on winning in home lending, simplifying our products and processes, optimising distribution, accelerating digital and everyday banking, and driving targeted growth in our business bank," Johnston told shareholders.
Digital engagement at the bank has also increased, with over 600,000 "digitally active" customers and over 1 million Suncorp App logins recorded every week, Johnston said.
Board members Duncan West, Sylvia Falzon, Christine McLoughlin, Douglas McTaggart and Lindsay Tanner were all re-elected by majorities of 96-plus per cent of votes, as was the remuneration report.