News: Suncorp says credit quality stable

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Despite floods and storms, Suncorp Group (ASX:SUN) says its credit quality remained "relatively stable" during the first three months of this year.



The insurance company’s chief executive, David Foster, says the company isn't planning a further increase in its provision for bad debts.



Dow Jones wires report that the group raised the provision, by $35 million at its half-year result because of the deterioration in the Queensland economy caused by the flooding.



In February, Suncorp’s chief executive Patrick Snowball floods would cost the insurance sector $2.5 billion in claims.



Suncorp reported a profit of $227 million for the half year ending December 31, 2010.