Suncorp plans to save $A225 million by 2013

Suncorp plans to save $A225 million by 2013Suncorp Metway Ltd., the second largest car and home insurer in Australia, is planning to improve its underlying margin over the coming two years by at least 3% annually.

The Insurer said that it expects a saving of around $A235 million by the June 2013. Suncorp also revealed its plans to merge its myriad personal insurance brands into a single mega-insurance business.

Suncorp said that it plans to improve the underlying margins at its general insurance business by at least 3% over two years. The company said that it will achieve this goal by simplifying pricing and claims.

"Our move to a functional model and a single view of pricing and claims will ensure the general insurance business leverages scale advantages across all of its brands and unlocks the potential in functional capability that has not been realized to date," said Patrick Snowball, chief executive of Suncorp.

Suncorp named this cost cutting project Building Blocks Program. The company said that this program would deliver a saving of $A235 million in annual benefits from June 2013.

Building Blocks Program will cost around $A120 million, according to the company. Suncorp also said that this cost of the project will be absorbed by cuts to discretionary spending and redirection of capital expenditure.