why suncorp is set to flourish

Here's an article from the business spectator on 26 November, by John Heath that hasn't been mentioned on HC to my knowledge and is an interesting read. I note that the share price has risen quite sharply since about that time which was just after the market update (link to update)
http://imagesignal.comsec.com.au/asxdata/20091124/pdf/01014286.pdf

"Why Suncorp is set to flourish

I do not believe QBE is about to make a bid for IAG before the end of 2009 – if it ever does.

So what has this got to do with Suncorp’s latest market update brief and its APS 330 disclosures this week?

Well, group CEO Patrick Snowball is virtually saying 'keep away from us'. He has thrown down the gauntlet to Australia’s insurance market with: “We can out-compete large incumbent and smaller new market entrants.” A brave challenge.

It also means that while M&A attention focuses on QBE and IAG, Suncorp is concentrating on building its own strength. At the same time, it is doing its best to make sure Allianz does not increase its market share to number three general insurer in Australia.

Snowball has made his second significant shuffling of troop commanders in only three months of holding the top job for Suncorp Australia.

He has had many one on one chats with senior officers at Suncorp in Brisbane and Sydney and is not dismayed with the returns of the insurance companies under his group command – ranging from Suncorp and GIO brands to Vero and AAMI to the smaller niche brands.

Further, he admitted what the industry and many investors have believed for some time that “the group currently lacks a number of essential tools required to optimise this strategy.” But he hasn’t slashed and burned staff numbers.

Snowball has deployed insurance into five operating divisions – Personal lines, Commercial insurance, Vero NZ, Suncorp Bank, Suncorp Life.

Everyone of the executive management team – who are now titled CEOs under Group CEO Patrick Snowball – has had extensive and successful rises in their respective insurance career paths. Under the new deployment there is better control and understanding from the top.

I mention the names because I think they will drive Suncorp’s insurance division that after all makes more money than banking, into an unassailable position in the top 3 when the next round of mergers and acquisitions begins in 2010.

They are Mark Milliner, CEO, Personal Insurance; Anthony Day, CEO Commercial Insurance; Roger Bell, CEO Vero NZ, and Geoff Summerhayes, CEO Suncorp Life. The others in charge of other operations are David Foster CEO Suncorp Bank; Jeff Smith, GE Business Technology, and Scott Alomes, GE Human Resources. Watch them.

When Suncorp gets its single claims, policy and pricing into gear across general insurance then Suncorp should be making real money."