Suncorp Group: Difference between revisions

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{{Short description|Australian financial company}}

[[Image:Suncorp.jpg|thumb|right|200px|Suncorp-Metway Logo]]

{{About|the Australian financial company|the Canadian oil company|Suncor Energy}}

{{Use dmy dates|date=August 2020}}

{{Use Australian English|date=May 2014}}

{{Infobox company

| name = Suncorp Group Limited

| logo = Suncorp_Group_logo.svg

| logo_size = 250px

| logo_alt =

| logo_caption =

| logo_padding =

| image = Suncorp Bank HQ at 80 Ann Street, Brisbane, 2022, 02.jpg

| image_size = 200

| image_alt =

| image_caption = Headquarters at 80[[ Ann Street, Brisbane]]

| type = [[Public company|Public]]

| traded_as = {{ubl|{{ASX|SUN}}|[[S&P/ASX 200]] component}}

| ISIN =

| predecessor = <!-- or: | predecessors = -->

| successor = <!-- or: | successors = -->

| founded = {{sda|1996}}

| founder = <!-- or: | founders = -->

| defunct = <!-- {{end date|df=yes|YYYY|MM|DD}} -->

| fate =

| hq_location = [[Brisbane]], [[Queensland]], Australia

| hq_location_city =

| hq_location_country =

| num_locations =

| num_locations_year = <!-- Year of num_locations data (when known) -->

| area_served = [[Australia]] and [[New Zealand]]

| key_people = [[Christine McLoughlin]] ([[chairman]])<br />Steve Johnston<br />([[Chief executive officer|CEO]])

| industry = [[General insurance]]

| genre = <!-- Only used with media and publishing companies -->

| products =

| brands = Suncorp Insurance, AAMI, GIO, Bingle, Apia, Shannons, CIL, Vero, Terri Sheer, AA Insurance, Asteron Life, Essentials by AAI

| production =

| production_year = <!-- Year of production data (when known) -->

| services =

| revenue = {{profit}} [[Australian dollar|A$]]14.99 billion

| revenue_year = 2022

| operating_income = {{profit}} [[Australian dollar|A$]]837 million (2022)<ref>{{cite web |title=SUN.AX Income Statement |url=https://finance.yahoo.com/quote/SUN.AX/balance-sheet/?guccounter=1 |access-date=9 May 2023}}</ref>

| income_year =

| aum = <!-- Only for financial-service companies -->

| assets = {{profit}} [[Australian dollar|A$]]106 billion (2022)<ref>{{cite web |title=SUN.AX Balance Sheet |url=https://au.finance.yahoo.com/q/bs?s=SUN.AX&annual |website=Yahoo Finance |access-date=9 May 2023}}</ref>

| assets_year = 2022

| equity = <!--{{steady}} -->[[Australian dollar|A$]]12.783 billion

| equity_year = 2022

| owner = <!-- or: | owners = -->

| members =

| members_year = <!-- Year of members data (when known) -->

| num_employees = ~14,500<ref>{{cite web |title=Directors Report and Financial Statements 2015 |url=http://www.suncorpgroup.com.au/sites/default/files/pdf/reports/SGL_2014_2015_DirectorsReportAndFinancialStatements_6.pdf |website=Suncorp Group |access-date=26 December 2015}}</ref>

| num_employees_year = 2015

| parent =

| divisions =

| subsid = Suncorp Insurance <br /> [[GIO General|GIO]] <br />[[AAMI]] <br />Apia <br />[[Vero Insurance|Vero]] <br />Shannons <br />Bingle <br />Terri Scheer <br />Asteron Life<ref>{{cite web |title=Our brands |url=http://www.suncorpgroup.com.au/about-us/what-we-do/our-brands |website=Suncorp Group |access-date=26 December 2015}}</ref>

| module = <!-- Used to embed other templates -->

| ratio = <!-- Basel III ratio, for BANKS ONLY -->

| rating = <!-- credit rating, for BANKS ONLY -->

| website = {{URL|suncorpgroup.com.au/}}

| footnotes =

| former_name =

| profit = {{profit}} [[Australian dollar|A$]] 631 Million

| profit_year = 2022

}}'''Suncorp Group Limited''', known simply as '''Suncorp''', is an Australian finance, insurance and [[banking]] corporation based in [[Brisbane]], [[Queensland]], Australia. It was formed on 1 December 1996 by the [[Mergers and acquisitions|merger]] of Suncorp, Metway Bank and the Queensland Industry Development Corporation (QIDC), and is one of Australia's mid-sized banks (by combined lending and deposits) and its largest [[general insurance]] group.<ref name=sunc-go/>

==History==

'''Suncorp-Metway''' ({{asx|SUN}}) is an [[Australia]]n finance, insurance, and [[banking]] corporation and Australia's sixth largest bank and fourth largest general insurance group. It was formed by the [[merger]] of '''Suncorp''', '''Metway''' and '''QIDC''' on [[1 December]] [[1996]].

==={{anchor|QIDC}}Queensland Industry Development Corporation===

Both Suncorp and QIDC had been owned by the [[Government of Queensland]]. Metway Bank was [[Queensland|Queensland's]] largest local bank.

QIDC had its origins in Agbank, which was a state government farming financier inaugurated in 1902.<ref name= sunc-hist/> In 1986, new Queensland legislation incorporated and regulated the bank as the Queensland Industry Development Corporation. By the mid 1990s, QIDC had assets of approximately $3 billion.<ref name= sunc-hist/>

===Merger as Suncorp-Metway: 1996 to 1999===

The companies merged as the Government believed there needed to be greater focus in long term banking and competitiveness in Queensland and Australia.

In response to sweeping changes in Australia's financial and insurance industries in the mid-1990s, and especially the increasing convergence of the banking and insurance sectors, the state owned QIDC and Suncorp were amalgamated with Metway Bank in 1996.<ref>{{cite web |title=1993-1996 |url=https://www.qtc.com.au/about-qtc/1993-1996/#:~:text=December%201996,%2C%20financial%20institution%E2%80%94Suncorp%20Metway. |website=QTC Website |access-date=27 May 2024 |language=en-AU}}</ref>

[[File:Suncorp Logo.svg|130px|thumb|{{nowrap|Logo used 1998–2016}}]]

When the companies first merged the name was decided to simply be Suncorp Metway. Some years later in 2002, Suncorp Metway changed its name to just Suncorp. Although in business aspects they are known as Suncorp, many people still call the company by its long name, "Suncorp Metway."

[[File:Suncorp Business Centre.jpg|thumb|left|The Suncorp Business Centre in Townsville, 2019]]

When they merged, Suncorp had assets of $10 billion. Metway had $7.1 billion in assets, and QIDC had $3 billion.

===Promina acquisition: 2007===

Suncorp has shares in [[RACQ]] in Queensland, the RAA in [[South Australia]], and the RACT Insurance in [[Tasmania]] (100%).

Suncorp then began preparations for a still larger takeover of insurance giant [[Promina Group]]. By early 2007, the two companies had agreed the terms of a merger deal valued at AUD 7.9 billion ($5.9 billion), which represented one of the largest acquisition deals completed in Australia's financial sector since the beginning of the new century.<ref name= smh-2007/>

They also are the parent of insurance company of GIO. GIO is mainly used as a [[general insurance]] company representing Suncorp interstate, as their branches are few and far between in places like [[Victoria (Australia)|Victoria]] and [[Western Australia]].

Promina was formerly part of the UK-based insurance giant [[Royal and Sun Alliance]] until it spun off the business in Australia as a separate public company in 2003.<ref name = tele-2003/>

In 2002, Suncorp-Metway (made up of Suncorp, Metway and QIDC) covered nearly all areas in wealth and banking, including life insurance, general insurance, commercial insurance, Compulsory Third Party (CTP), banking, finance, agricultural banking and business banking.

==Recent events==

Today Suncorp is still strong, with assets of over $54 billion. There are 4.3 million customers and over 8,700 staff. Suncorp has 229 retail and business banking outlets, predominantly in Queensland, and GIO has 34 agencies in [[NSW]] and [[Victoria (Australia)|Victoria]]. The company is owned by approximately 178,000 [[shareholder]]s holding some 553 million [[shares]]. Suncorp's current CEO is Mr John Mulcahy. [[Suncorp Stadium]], located in Inner Brisbane, is the home of the [[Brisbane Broncos]] and [[Queensland Roar]]. British Pop star Robbie Williams is scheduled to play 2 Concerts at Suncorp Stadium later in the year.

During a retail banking review in 2007, Suncorp determined that its credit card portfolio was a non-core asset and entered into talks to sell its 100,000 card/$230 million credit-card portfolio to Citibank.<ref name=smh-2008/> Citibank now handles the operational aspects of credit whilst the Suncorp brand remains on the cards and Suncorp continues to provide customer interaction.<ref name= sunc-citi/>

As of 2007, Suncorp had assets of over A$95 billion,<ref name= sunc-hist/> over 9 million customers,<ref name= sunc-hist/> and over 16,000 staff.<ref name=mulcahy-2006/> Suncorp operated 232 retail and business banking outlets, predominantly in Queensland. GIO operated 34 agencies in NSW and Victoria. An additional 157 retail branches and services centres were added with the Promina acquisition.<ref name= sunc-hist/>

Suncorp is widely acknowledged as one of the most successful banking / insurance hybrids headquartered in Brisbane, Queensland.

In June 2013, [[Goldman Sachs]]'s Special Situations Group, the proprietary investment unit of the investment bank, purchased some of Suncorp Group Ltd.'s loans for about US$863 million.<ref name= wsj-aug-2013/> In the summer of 2013 as European lenders were divesting their loans portfolios, in Australia, hedge funds and investment banks were buying them.<ref name= wsj-aug-2013/> In 2013, [[Distressed securities|distressed-debt investors]], seeking investment opportunities in Asia, particularly in Australia, acquired discounted bonds or bank loans of companies facing distressed debt, with the potential of profitable returns if the companies' performance or their debt-linked assets improves. In 2013 Australia was one of the biggest markets for distressed-debt investors in Asia.<ref name= wsj-aug-2013/>

Suncorp recently launched a $7.8 Billion Dollar takeover bid for the Promina Group, whose aegis subsumes the AAMI, Vero, Just Cars and Insurers'Hotline Insurance Brands. The ACCC(Australian Consumer and Competition Commission)recently approved of the merger of the two entities, despite reservations posited by a plethora of financial pundits that the proposed merger would incur the disapproval of the ACCC, on predicates that this merger would run counter to the interests of consumers.

Suncorp Business Services appointed its new CEO, Matt Pancino, on 13 June 2014. Pancino formerly worked as the Chief Information Officer for the group.<ref name=":0">{{cite web|url=http://www.suncorpgroup.com.au/announcements-pdf/539102 |title=ASX Announcement |date=13 June 2014 |website=www.suncorpgroup.com.au}}</ref> Suncorp was inducted into the [[Queensland Business Leaders Hall of Fame]] in 2016.<ref>{{Cite web|url=http://leaders.slq.qld.gov.au/inductees/|title=Hall of Fame|website=[[Queensland Business Leaders Hall of Fame]]|publisher=[[State Library of Queensland]]|archive-url=https://web.archive.org/web/20181023083836/http://leaders.slq.qld.gov.au/inductees/|archive-date=23 October 2018|url-status=live|access-date=23 October 2018}}</ref><ref>{{cite web|url=http://leaders.slq.qld.gov.au/inductees/suncorp-group/|title=Queensland Business Leaders Hall of Fame {{!}} Suncorp Group|website=leaders.slq.qld.gov.au|language=en-US|access-date=2017-02-10}}</ref>

==External links==

*[http://www.promina.com.au/ Corporate website]

*[http://www.suncorp.com.au/ Corporate website]

*[http://www.gio.com.au GIO website]

*[http://www.ract.com.au RACT website]

*[http://www.racq.com.au RACQ website]

*[http://www.raa.com.au RAA website]

{{Primarysources|date=December 2006}}

In 2020, Suncorp admitted to wage theft dating back to 2014. In June 2023, it was announced that remediation of the theft amounted a total $32 million in wages, misappropriated from 15,800 staff.<ref>{{Cite web |title=Suncorp pays $32 million to underpaid staff |url=https://www.businessnewsaustralia.com/articles/suncorp-forced-to-pay-back--32-million-to-underpaid-employees.html |access-date=2023-06-09 |website=Business News Australia |language=en}}</ref>

[[Category:Companies established in 1996]]

[[Category:Banks of Australia]]

Suncorp has been granted a [[MySuper]] authority, enabling it to continue to receive default superannuation contribution from 1 January 2014.<ref>{{cite news |url=https://www.financialstandard.com.au/news/bussq-qantas-suncorp-get-mysuper-approval-33179754| title=BUSSQ, Qantas, Suncorp get MySuper approval |access-date=27 May 2024}}{{Dead link|date=October 2024}}</ref>

== Business interests {{anchor|Brands}}==

{{Australia-company-stub}}

Suncorp covers nearly all areas in [[wealth]] and banking, including life insurance, general insurance, commercial insurance, Compulsory Third Party (CTP), banking, finance, superannuation agricultural banking and business banking, the notable exception being health insurance. It is the largest banking and insurance corporation headquartered in Brisbane.<ref name= sunc-go/>

Suncorp trades under a number of brands,<ref>{{cite web|url=https://www.smh.com.au/money/saving/dont-be-fooled-by-the-plethora-of-brands-20180215-h0w4x6.html|title=Don't be fooled by the plethora of brands|first=Clancy|last=Yeates|date=16 February 2018|website=[[Sydney Morning Herald]]}}</ref> including [[AAMI]], Apia, Shannons, InsureMyRide, Vero, Terri Scheer, Bingle, CIL and Tyndall insurance brands in Australia, and Vero, Asteron, Guardian Trust, Tyndall, Vero Liability, AA Insurance, SIS, CMV/AXIOM and Autosure brands in New Zealand. Those assets were acquired with the [[Promina Group]] in 2007. Tal Australia purchased Asteron Australia from Suncorp in December 2018.<ref>{{cite web|url=https://riskinfo.com.au/news/2018/08/09/tal-buys-asteron-life/|title= TAL Buys Asteron Life |date=9 August 2018|website=riskinfo}}</ref>

=== Suncorp Bank ===

{{Main|Suncorp Bank}}

On 19 April 2009, Suncorp announced a re-branding of the banking arm of the company to [[Suncorp Bank]], to emphasise that Suncorp was a bank with an insurance arm, not an insurance company with a banking division.{{Citation needed|date=April 2011}} In July 2022, Suncorp Group agreed terms to sell Suncorp Bank to the [[ANZ Bank]] for {{AUD|5{{nbsp}}billion|link=yes}}.<ref>{{cite news |last1=Janda |first1=Michael |last2=Ryan |first2=Peter |title=ANZ announces $5 billion Suncorp Bank takeover |url=https://www.abc.net.au/news/2022-07-18/anz-plans-suncorp-bank-takeover/101246510 |access-date=2024-10-02 |work=ABC News |publisher=Australian Broadcasting Corporation |date=2022-07-18}}</ref>

=== Joint ventures ===

Suncorp acquired insurance joint ventures with motoring clubs [[Royal Automobile Club of Queensland|RACQ]] and [[Royal Automobile Association|RAA]] in 2001, but chose to divest them in 2010. Suncorp entered into a joint venture agreement with RACT Insurance in [[Tasmania]] in 2007, but sold its 50% interest back to [[Royal Automobile Club of Tasmania|RACT]] in July 2021.<ref>{{Cite web|title=Suncorp divests 50% stake in RACT Insurance - Daily - Insurance News - insuranceNEWS.com.au|url=https://www.insurancenews.com.au/daily/suncorp-divests-50-stake-in-ract-insurance|access-date=2021-08-16|website=www.insurancenews.com.au|language=en}}</ref>

<ref>{{cite web|url=http://www.suncorpgroup.com.au/sites/default/files/fm/documents/CSR/Org%20Chart7%20A3%20Main%20Oper%20incl%20AML%20(GILC%20eff%2006Mar15).pdf |title=Flowchart |date=6 March 2014 |website=www.suncorpgroup.com.au}}</ref>

== See also ==

{{Portal|Banks}}

* [[Banking in Australia]]

* [[List of banks]]

* [[List of banks in Australia]]

* [[List of banks in Oceania]]

== References ==

{{Reflist|refs=

<ref name= sunc-go>{{cite web |url=http://www.suncorpgroup.com.au/about-us/who-we-are |title=Who we are |website=Suncorp Group |access-date=26 December 2015}}

</ref>

<ref name= sunc-citi>{{cite web |url=http://www.suncorpgroup.com.au/media/news/bank/suncorp-and-citibank-sign-credit-card-deal |title=Suncorp and Citibank Sign Credit Card Deal |website=Suncorp Group |date=8 February 2008 |access-date=26 December 2015}}

</ref>

<ref name= smh-2007>{{cite news |date=5 March 2007 |title=Promina shareholders approve $8b Suncorp merger |work=The Sydney Morning Herald |url=http://www.smh.com.au/news/business/promina-shareholders-approve-8b-suncorp-merger/2007/03/05/1172943316781.html?s_cid=rss_smh |access-date=16 June 2014 |url-status=live |archive-url=https://web.archive.org/web/20140615230736/http://www.smh.com.au/news/business/promina-shareholders-approve-8b-suncorp-merger/2007/03/05/1172943316781.html?s_cid=rss_smh |archive-date=15 June 2014}}

</ref>

<ref name = tele-2003>{{cite news |date=1 April 2003 |first=Andrew |last=Cave |title=Royal Sun floats off Promina |work=[[The Daily Telegraph]]|___location=London |access-date=15 June 2014 |url=https://www.telegraph.co.uk/finance/2847818/Royal-Sun-floats-off-Promina.html |url-status=live |archive-url=https://web.archive.org/web/20140615230623/http://www.telegraph.co.uk/finance/2847818/Royal-Sun-floats-off-Promina.html |archive-date=15 June 2014}}

</ref>

<ref name= smh-2008>{{cite news |date=8 February 2008 |title=Suncorp to transfer $230m credit card portfolio to Citi |work=The Sydney Morning Herald |url=http://business.smh.com.au/business/suncorp-to-transfer-230m-credit-card-portfolio-to-citi-20080208-1qz5.html |access-date=6 October 2008}}

</ref>

<ref name= sunc-hist>{{cite web |url=http://www.suncorpgroup.com.au/about-us/our-history |title=History of Suncorp |website=Suncorp Group |access-date=26 December 2015}}

</ref>

<ref name= mulcahy-2006>{{cite web |first=John |last=Mulcahy |title=Chief Executive Officer's presentation to Morgan Stanley Asia Pacific Summit, Singapore |publisher=Suncorp-Metway Limited |date=16 November 2006 |url=http://www.myinsuranceguide.co.nz/wp-content/uploads/2014/05/ceo_speech_asia_pacific_2006-1.pdf|access-date=5 February 2007}}

</ref>

<ref name= wsj-aug-2013>{{cite news |date=7 August 2013 |title=Distressed-Debt Investors Eye Asia |url=https://blogs.wsj.com/moneybeat/2013/08/07/distressed-debt-investors-look-toward-asia/?mod=e2tw |journal=The Wall Street Journal|access-date=8 August 2013}}

</ref>

}}

== External links ==

* {{official website}}

*[https://onesearch.slq.qld.gov.au/permalink/61SLQ_INST/tqqf2h/alma99183896319202061 Suncorp Group digital story and oral history: Queensland Business Leaders Hall of Fame 2016], [[State Library of Queensland]]

{{S&P/ASX 50}}

{{Banking Industry in Australia}}

[[Category:Companies listed on the Australian Securities Exchange]]

[[Category:Companies in the S&P ASX 50]]

[[Category:Australian companies established in 1996]]

[[Category:Financial services companies established in 1996]]

[[Category:Banks established in 1996]]

[[Category:Banks of Australia]]

[[Category:Insurance companies of Australia]]

[[Category:Companies based in Brisbane]]