News: Suncorp targets 7% growth

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Suncorp Group Limited (ASX:SUN) says its targeting topline growth of 7 to 9 per cent per annum over the next two years and 10 per cent return on equity by the end of fiscal 2015.

 

Suncorp Group CEO Patrick Snowball told investors about the group’s simplification program, saying benefits will increase to $225 million in the 2015 financial year and $265 million in 2016.

 

Mr Snowball says the group is undergoing a transformation to become more streamlined and efficient and has achieved results ahead of plan.

 

Suncorp says it wants to maintain a dividend payout ratio of 60 to 80 per cent of earnings and return any excess capital to shareholders.

 

The insurer says it remains focused on organic growth as its businesses perform strongly in low risk, target markets.

 

Suncorp generated a net profit of $577 million for the first half of the current financial year.