Suncorp
(ASX:SUN) chief executive Patrick Snowball is expected to unveil a new strategy today that aims to make the business more profitable by overhauling technology and operations within its insurance business.
The Australian Financial Review reports that the strategy will harmonise the Group's insurance businesses by changing the back office computer operations and targeting each brand to different consumer groups, instead of running rival businesses within the company.
It’s hoped the move will make things a lot simpler for customers.
Suncorp's insurance businesses include GIO Insurance, APIA, AAMI, Vero and Shannons.
AFR also reports that Mr Snowball is expected to tell investors that he’ll resist short term job cuts and senior management changes. Instead he’ll rely on the technology overhaul to deliver cost savings of over $200 million.
Suncorp’s insurance business accounts for around 65% of the Group’s earnings.
In the financial year to June 30 2009, Suncorp Metway posted a $348 million next profit, which was down on the year before.
