Suncorp saw its insurance division's earnings double to $276 million.
👉 Background: Suncorp Group is both a bank and insurer, which was founded back in Bris-vegas in 1996. And last year, ANZ proposed to acquire Suncorp’s banking division for just under $5 billion…which is still in the works.
👉 What happened: This deal would allow Suncorp to focus more on its prized insurance division, which saw its earnings double to $276 million under its brands AAMI and Apia.
👉 What else: It's pretty simple - insurance premiums jumped nearly 9% across the board and 10.7% for home premiums. And this is a classic case of cost-push inflation.
💡Cost-push inflation is when the price of goods and services increase because of the increase in the cost of wages and raw materials.
💡When the cost of running a business increases because of inflation, businesses have to figure out a way to protect themselves (ie protect their profits).
The most popular way to do this is by raising their prices.
💡 We've seen this with supermarkets (ahem cereal prices up 18%) and other medical appointments too. But of course that means that the end customers have to pay more for the same products and service.
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