Suncorp Group Limited ASX Code: SUN Price: …

1 Business SummarySuncorp Group Limited (SUN) is a Queensland-based financial servicesconglomerate offering retail and business banking , general insurance, lifeinsurance, superannuation and investment products in Australia and NewZealand. SUN has following five core businesses: Personal Insurance,Commercial Insurance, Vero New Zealand, Suncorp Bank and Suncorp :This division includes the provision of personalinsurance products to customers in Australia including home and contentsinsurance, motor insurance, boat insurance and travel :This division includes the provision of commercialinsurance products to customers in Australia including commercial motorinsurance, commercial property insurance, marine insurance, industrialspecial risks insurance, public liability and professional indemnity insurance,workers' compensation insurance and compulsory third party insurance, loanprotection insurance and equity and cash benefit.

2 This division includes the provision of general insuranceproducts to customers in New Zealand including home and contentsinsurance, motor insurance, marine insurance, business insurance, ruralinsurance, construction and engineering insurance, travel insurance, publicliability and professional indemnity, and directors' and officers' :This division includes the provision of personal and commercialbanking, agribusiness, property and equipment finance, home, personal andsmall business loans, savings and transaction accounts and foreignexchange and treasury products and services superannuation, fundsadministration services and financial planning in :This division includes the provision of life insurance products,superannuation administration services, financial planning and fundsadministration services in Australia and New ResearchCash and growth storySUN confirmed today it has signed a share sale deed with TAL Dai-IchiLife Australia (TAL) to sell its Australian life insurance business for $ was first announced last month and the sale includes a 20-yearagreement with TAL to distribute life insurance solutions through SUNchannels, with completion expected by31 December 2018 (subject to the usual conditions and approvals).

3 Net ofsale price adjustments, SUN plans to return ~$600m (~46cps) surpluscapital to shareholders and this is likely as an off-market buyback given theneed to preserve franking credits. The sale will also remove the drag onGroup more information see research 5 Sept - InsuranceSuncorp Group LimitedASX Code: SUNP rice: $ Mth Target Price: $ : BuyImportant Disclaimer -This may affect your legal rights: Because this document has been prepared without consideration of any specific client's financial situation, particular needs and investmentobjectives, a Bell Potter Securities Limited investment adviser (or the financial services licensee, or the proper authority of such licensee, who has provided you with this report by arrangement withBell Potter Securities Limited ) should be consulted before any investment decision is made. While this document is based on the information from sources which are considered reliable, Bell PotterSecurities Limited , its directors, employees and consultants do not represent, warrant or guarantee, expressly or impliedly, that the information contained in this document is complete or does Bell Potter Securities Limited accept any responsibility to inform you of any matter that subsequently comes to its notice, which may affect any of the information contained in this document is a private communication to clients and is not intended for public circulation or for the use of any third party, without the prior approval of Bell Potter Securities Limited .

4 This is generalinvestment advice only and does not constitute advice to any of Interest:Bell Potter Securities Limited receives commission from dealing in securities and its authorised representatives, or introducers of business, may directly share in thiscommission. Bell Potter Securities and its associates may hold shares in the companies on issue12 Month High12 Month Low4 October 2018$18,387m1, $ $ Mth Target PriceCapital GainGross YieldImplied Total ReturnBuy$ FundamentalsFYE 30 Jun2018A2019F2020F2021 FProfit$m1, 1, 1, 1, (norm)*$m1, 1, 1, 1, * Growth% * Relative% * Adjusted for goodwill and unusual itemsSource: Based on Bell Potter estimatesShare Price ChartTotal Return on $10,000 InvestmentProfit & Loss ($M)2014A2015A2016A2017A2018 ANet Earned Premiums8,5838,5538,6798,1718,359 Claims Expense-6,468-6,200-5,940-5,948-6,092 Underwriting Profit1,285-960-532-1,097-1,258 Investment Income4,0043,6413,3993,1293,103 Unrealised Gains513428------Profit Before Tax1,1751,6621,5671,6081,577 Income Tax-438-522-462-523-505 Outside Equity after Tax7301,1331,0981,0751,059 Significant Items after Tax-----60----Reported Profit after Tax7301,1331,0381,0751,059 Preference Dividends----------Cash Flow ($M)

5 2014A2015A2016A2017A2018 APremiums Received10,92811,01811,28011,46611,627 Outward Reinsurance Paid-1,244-1,379-1,325-1,495-1,568 Claims Paid-9,038-9,355-11,767-9,186-8,825 Reinsurance Received2,4062,5312,2982,2132,134 Net Operating Cashflow1,687-441-2,732195-1,879 Acquisitions & Investments-18,724-----28,598 -32,108 Sale of Invest. & ,730--2,59829,17831,587 Net Investing Cashflow21,0953,463406-240 Proceeds from Issues400--------Dividends Paid-1,088-1,386-1,025-831-865 Net Financing Cashflow-2,593-879-234-2621,257 Net Increase Cash-904-225497339-862 Cash at Beginning2,6411,7411,5142,0182,357 Exchange Rate at End1,7411,5142,0182,3571,491 Ratios and Substantial Shareholders2014A2015A2016A2017A2018 AProfitability RatiosClaims Ratio% Ratio% Ratio% on Equity% RatiosSolvency Ratio% 5 Substantial ShareholdersFIL Limited and the Vanguard Group , Sheet ($M)

6 2014A2015A2016A2017A2018 ACash & Equivalent8951,2161,7981,8401,165 Receivables12,39112,15812,74614,09213,68 2 Investments22,02322,17819,41519,59319,83 4 Other Current Assets6,4203,1523,1982,8082,924 Current Assets41,72938,70437,15738,33337,605 Receivables38,31742,58543,84045,02547,76 7 Investments6,4855,3365,4664,2544,511PP&E 205191183200211 Other (inc Intangibles)7,6938,8359,1029,2979,239 Non-Current Assets52,70056,94758,59158,77661,728 Total Assets94,42995,65195,74897,10999,333 Trade Creditors2,158--1,8431,9992,062 Unearned Premiums--4,6554,8124,9315,014 Outstanding Claims9,2729,9989,73410,95210,176 Borrowings47,16448,73449,21147,50348,498 Provisions3792786510668 Other----844799747 Total Liabilities58,97363,66566,50966,29066,56 5 Unearned Premiums--53583422 Outstanding Claims11,275--------Borrowings10,0338,52 68,7209,95814,396 Provisions5893110121129 Other (inc Creditors)2919,7966,7816,9164,248 Non-Current Liabilities21,65718,46815,66917,02918,79 5 Net Assets13,79913,51813,57013,79013,973 Current Analyst Recommendations ** Source: Morningstar.

7 This chart shows the spread of recommendations from thosebroker analyst's in Australia with research coverage of this & DirectorsPrincipalsCompany SecretaryMs Kristy HuxtableMr Darren Charles SolomonDirectorsMs Christine Frances McLoughlin(Non-ExecutiveChairman,Non-Exe cutive Director)Mr Michael Andrew Cameron(Chief Executive Officer,ManagingDirector)Dr Douglas Francis McTaggart(Non-Executive Director)Ms Sally Herman(Non-Executive Director)Ms Audette Evelyn Exel(Non-Executive Director)Ms Sylvia Falzon(Non-Executive Director)Mr Ian Hammond(Non-Executive Director)Mr Lindsay James Tanner(Non-Executive Director)Mr Simon Machell(Non-Executive Director)To access further Research or for information regarding our recommendations and ratings please 2018 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liabilityfor its use or distribution.

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