Shares to Buy 21 May 2010
Suncorp-Metway is a financial services conglomerate that provides banking, general insurance, and wealth management services in Australia and New Zealand.
In today’s General Insurance Investor Update, Suncorp-Metway outlined plans to simplify the structure of its general insurance arm in order to improve its margins.
SUN is targeting both margin improvement and $235 million in annual cost savings by June 2013.
SUN intends to move to a single view on pricing and claims, effectively lowering costs and helping it leverage its scale across its insurance brands.
Project costs of $120 million will be absorbed into SUN’s existing cost base as the group slashes discretionary spending.
SUN’s intention is to boost market share in the small-to-medium enterprises segment.
Australian share price for SUN eked up one cent on Friday and last closed at $8.00 a share.