Shares in Suncorp-Metway Ltd slumped after the banking and insurance group said its outgoing chief executive was leaving sooner than expected and an internal candidate for the top job signalled his departure.

Suncorp said John Mulcahy, who announced on February 5 he would step down as soon as a new chief was appointed, would leave on March 2 and that his vacancy would be temporarily filed by chief financial officer Chris Skilton.

But Mr Skilton, who was thought to be a candidate for the chief executive job, said he planned to also leave when the new head had arrived and settled in a new chief financial officer.
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Suncorp-Metway Ltd’s first half profit has declined by 32.8 per cent after the banking and insurer firm was hit by higher bad debts and claims surged because of severe weather events.

Net profit for the six months ended December 31 was $258 million, down from $384 million in the previous corresponding period.

The group had flagged the figure to the market earlier this month, when it also launched a minimum $900 million capital raising and announced that chief executive John Mulcahy would be stepping down.
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Banking and insurance group Suncorp Metway Ltd says the combined cost of claims related to the recent bushfires in Victoria and floods in Queensland is expected to be around $180 million.

Suncorp said on Thursday that it’s too early to provide and indication of ultimate claims numbers and costs.

But it was clear the events would trigger’s its aggregate reinsurance arrangements.
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Suncorp Metway Ltd is tallying the claims from the the Victorian bushfires and Queensland floods and says it is too early to estimate costs from the events.

Suncorp spokesman Jamin Smith told AAP it is too early to assess the claim numbers and costs from Victoria’s bushfires over the weekend, and accurate numbers on claims from Queensland’s floods will not become known until the flood waters recede.

An estimate on the number of claims will be available later this week, he said.
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Chief executive of Suncorp Metway Ltd John Mulcahy has agreed to step down from his post after six years in the role.

Mr Mulcahy will stay on in the role until a new chief executive is in place, Suncorp said in a statement.

He will also remain a director of the company until he ceases to be CEO.
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Suncorp-Metway Ltd has left the door wide open to higher bids for its banking and wealth management units after closing talks with several parties that would result in low-ball offers.

After talks with Commonwealth Bank of Australia and others failed to produce any “realistic” bids, Suncorp-Metway Ltd has thrown in the towel over the current sale process.

It says the government’s major policy moves on guaranteeing bank deposits and wholesale funding has shifted the goal posts.
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Banking and insurance group Suncorp-Metway Ltd is assessing whether to sell its banking and wealth management operations after the Federal Government announced it would guarantee all deposits.

Suncorp shares fell over six per cent as the S&P/ASX 200 Index gained more than three per cent as investors speculated the sale of the banking business will not go ahead, or will be significantly delayed, market sources said.
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Takeover speculation surrounding BankWest and Suncorp Metway Ltd dominated Australia’s banking sector today, with Commonwealth Bank of Australia Ltd (CBA) denying it currently had an offer on the table for BankWest.

Suncorp’s shares were propelled 4.37 per cent, or 42 cents higher, to $10.03 on renewed speculation the bancassurer was being circled by three of the local big four banks, despite widely-held views that none want Suncorp’s insurance arm.
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Banks could to forced to ration credit if conditions in world debt markets get any worse, according to Suncorp Metway Ltd chief financial officer Chris Skilton.

Mr Skilton said improvements in funding conditions for banks had partly reversed at the time ANZ Banking Group Ltd and National Australia Bank Ltd announced big writedowns.

“While further deterioration is unlikely, it clearly cannot be ruled out,” he told analysts.
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