Suncorp confident of share price
Suncorp's chief executive, John Mulcahy, says that they will be able to close the share price gap with rivals by the end of 2008. With banking now accounting for only one quarter of the group's earnings, the financial services group's share price is compared with other major players in the insurance industry. Suncorp trades on a forward multiple of 10.5 times earnings compared with 12.2 times for Insurance Australia Group and 14 times for QBE. Mr Mulcahy said that the discount would be expected as they are still in the process of integrating the $7.9 billion purchase of Promina in March last year. “I think we would be able to demonstrate by this time next year that we have great outcomes from the integration. I would expect the market to recognise that,” he said.
By The Australian Financial Review