Its net profit was down 23 per cent but this was because last year’s result was boosted by a one-off abnormal increase through an asset sale.

The result was cheered by investors who pushed the company’s shares up 6 per cent in early trade.

The company also announced a shake-up of its strategy, releasing a three-year plan that included the end of personal lending to concentrate on home lending.

It will also cease underwriting travel insurance and its Vero brand would also exit Australian consumer and construction policies through intermediated channels.

Suncorp said it had come through the pandemic relatively unscathed, but remained cautious in its outlook. The lockdowns provided a small benefit to motor insurance claims activity and there were lower home theft claims, but these were countered by additional provisions to cover business interruption claims.

Despite the economic recovery underway in Australia, Suncorp forecast a “continuing deterioration in macroeconomic conditions offset by an increase in breadth and severity of potential downside scenarios” it had modelled, which reflected market uncertainty.

The company maintained its dividend of 26 cents a share.

It said its home lending contracted 1.6 per cent. New applications for loans were up 30 per cent but the volume was more than offset by people increasing their mortgage repayments as well as property sales and industry-wide refinancing. The proportion of home lending initiated over the web almost doubled to 13.9 per cent.

Suncorp’s three-year plan to drive growth has a focus on digital improvements and a shake-up of its AAMI business.

Its product suite across all brands would also be simplified and an investment in analytics would be made to improve pricing, risk selection, customer retention and drive a lower claims ratio.

“The bank aims to grow in home lending, focussing on speed, transparency and the consistency of its origination processes to improve the customer and broker experience,” the company said.

Suncorp managing director Steve Johnston said the first-half results showed business plan was working.

“Over the past year, we have refocused our strategy, continued to implement the ongoing regulatory program of work, improved our customer service, reinvigorated our brands, further digitised our business and became more efficient,” Johnston said.

“We are seeing improved momentum in our Australian and New Zealand insurance businesses as evidenced by top-line growth, while our bank is delivering improved performance.”

Natural hazard costs were $561 million, $86 million above the allowance for the half-year and $42 million up on last year.

The hail storm across NSW and Queensland in October cost $195 million.