Suncorp Group, Australia's biggest general insurer, aims to increase its insurance margin by three percentage points next in the next financial year and double its profit in New Zealand over the next three years.

Suncorp’s building blocks reorganization program is expected to give the insurer and regional bank a $235 million gain. Furthermore, it aims to simplify the business and combine back office operations for different brands.

The Sydney Morning Herald accounted, Suncorp was aiming for one to 1.3 times system housing lending growth by December 2010 and a return on equity of over 15 per cent at the core bank, which includes personal banking, mortgages and lednings to small- and medium-sized businesses.

After it ran into trouble with bad loans during the financial crisis, the company split its bank into core and non-core lending.

The non-core assets are permitted to overflow over time. Such assets include lease finance, structured finance, development finance and property investment.

In an investor update today, Suncorp its desire to have one million customers and a cost to income ratio in the mid-40s by 2013.

In a report by Adelaide Now, Suncorp revealed that the cost of the Christchurch earthquake to Suncorp would be about $NZ120 million ($91.97 million), net of reinsurance recovery. Consequently, it would exceed the total annual general insurance premium pool.

Its reinstatement premiums to reduce exposure to a further New Zealand event cost the company a further $20 million on as its shares declined two cents to $8.37 by 1157 AEST.