**gudance for financials tomorrow***

Higher than usual recent storm activity not expected to impact full year result
Suncorp has announced estimated total claims costs arising from the Melbourne storms in early December of
approximately $17m.
Whilst this single event is within Suncorp’s normal claims provisions, this together with recent heavy storms in
south east Queensland, Sydney and Gladstone has resulted in a higher than usual claims experience from storm
activity for the first half of financial year 2004.
Notwithstanding this, Suncorp chief financial officer Chris Skilton said that Suncorp still expected to report an
insurance trading margin in the range of 10-13 per cent for the first half of financial year 2004 and for the year
as a whole.
“In the absence of any other unforeseen natural catastrophes, we still expect to meet our ITR outlook owing to
the greater diversification and spread of the group’s risks both by product and geography resulting from the
acquisition of GIO,” he said.
Mr. Skilton also added in the context of the Group’s outlook, that he expected the effective tax rate for financial
year 2004 to be in the order of 32% to 33%. He stated that this is due to the non-deductibility of $60m
amortisation of goodwill per annum and the reduced amount of franking credits expected to be received from
the shareholder funds’ investment portfolio.
Suncorp, one of Australia’s top 30 companies, specialises in banking, insurance and investment.