Industry giants a study in contrasts

Top two insurers Suncorp and IAG are expected to deliver vastly different results when the pair unveil their end-of-year financials this week.

As Suncorp prepares to release a strong rise in net profit – tipped by analysts to be more than double last year’s result – struggling competitor IAG is forecasting a 50 percent reduction in profit once natural catastrophe and UK losses are taken into account.

While storm damages are expected to cut marginally into Suncorp’s insurance profit margin, analysts are predicting an overall net profit after tax between USD 720 million and USD 800 million – more than double last year’s result of USD 348 million.