News: Suncorp Group warns of $500M writedown

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Suncorp Group Limited (ASX:SUN) has warned it will suffer a $500 million writedown but says it will not impact its cash earnings or dividends.

 

The Brisbane based insurance company made the non-cash writedown after reassessing the carrying value of intangibles and goodwill associated with its Life business.

 

The writedown is expected to have a minimal impact on the company’s $27 million capital surplus and will be reported in the company’s annual net profit as a non-cash item.

 

CEO Partick Snowball says the changed assumptions that brought about the writedown recognise the industry headwinds and deteriorating situation.

 

Looking ahead the company has cut its 2015 financial year growth target to 4 per cent and 6 per cent from an earlier forecast of between 7 per cent to 9 per cent. 

 

Suncorp Group reported a net profit of $551 million in the first half of the 2014 financial year.