Suncorp-Metway 1st-Half Profit Surged as Much as 46%

[Malt]

http://www.bloomberg.com/apps/news?p...efer=australia

Suncorp-Metway 1st-Half Profit Surged as Much as 46% (Update2)
Jan. 28 (Bloomberg) -- Suncorp-Metway Ltd., Australia's sixth-biggest lender and third-largest general insurer, said first-half profit rose as much as 46 percent on surging earnings from general insurance and banking.

Net profit for the six months ended Dec. 31 rose to between A$395 million and A$410 million ($318 million) from A$281 million a year ago, Brisbane-based Suncorp-Metway said in a statement to the Australian Stock Exchange today. Suncorp reports final first- half results on Feb. 25.

Suncorp's benefited from a ``peak insurance cycle, strong insurance margins and investment markets,'' said Atul Lele, who holds insurance stocks for the equivalent of about $540 million he helps manage at White Funds Management in Sydney. ``All the insurers are also benefiting from a strong investment market.''

Suncorp's banking earnings before tax rose about 20 percent, insurance profit climbed more than 50 percent and the company's wealth management unit boosted income by 13 percent, the bank said. The first-half result was ``materially'' above the average forecast of analysts, the statement said.

Suncorp's shares rose 65 cents, or 3.5 percent, to A$19.05 at 10:30 a.m. in Sydney, taking their gain for the year to 9.4 percent. Australia's benchmark S&P/ASX 200 Index has gained 1.6 percent this year, adding to last year's 23 percent advance.

``These excellent results reflect the favorable operating environment'' such as a higher Australian equity market and lower insurance claims, Chief Executive Officer John Mulcahy said in the statement. ``While the first half performance has been stronger than expected, economic and competitive conditions have become tougher as we enter the second half.''