Thursday, February 28, 2008

Suncorp-Metway Profit Drops as Storms Increase Claims

uncorp-Metway Ltd., Australia's second-largest car and home insurer, said first-half profit tumbled 28 percent on declining financial markets and increased payouts for storms. The shares fell the most in a month.
Net income dropped to A$382 million ($360 million) in the six months ended Dec. 31, from A$527 million a year earlier, the Brisbane-based company said in statement today.
Chief Executive Officer John Mulcahy forecast higher funding costs will shave A$10 million to A$15 million from full- year pretax profit. Mulcahy also said Suncorp had A$510 million in loans linked to MFS Ltd. and Allco Finance Group Ltd., two companies struggling to repay debt.©bloomberg

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