Suncorp aims to reach the margin of its insurance business by 3 per cent over the next two years.

Patrick Snowball, chief executive of Suncorp, said the company's building blocks program that offers insurance pricing and claims, will aim to deliver $235 million in annual benefits by June 2013.

He said the group will slash out discretionary spending, redirecting capital expenditure and simplifying systems, which may help generate $120 million in project costs.

“Our move to a functional model and a single view of pricing and claims will ensure the general insurance business leverages scale advantages across all of its brands and unlocks the potential in functional capability that has not been realised to date,” Mr. Snowball said

Suncorp's personal insurance business may modify its margins by carrying out its single pricing engine and claims model, and moving it to a single function model.

The group will also increase its market share of commercial insurance businesses and will seek to double its sustainable net profit after tax in its Vero New Zealand business.

“Vero New Zealand can achieve this target organically by extending our specialist focused business model and integrated portfolio management system, as well as significantly growing our business through the relationship with ANZ National,” chief executive Roger Bell of Vero said.

Suncorp offers banking, insurance, and investing services for personal and businesses. It also provides internet banking, online share trading, and insurance to its customers.