By Stuart Condie
SYDNEY--Australian insurer Suncorp pushed back its decision on whether to engage in capital management, taking a cautious stance in response to increased volatility in global markets.
In February, Suncorp had flagged the potential for capital management, most likely in the form of a share buyback, in the June quarter. On Thursday, it said it would not take any decision until its annual result announcement in August.
"Given the recent market turmoil and volatility, we feel it prudent to defer consideration of capital management," Suncorp Chief Executive Steve Johnston said.
Suncorp said that natural hazard claims for the 10 months through April totaled 1.115 billion Australian dollars, or about US$716.3 million. Even including A$597 million related to specific events, that is tracking well within Suncorp's A$1.56 billion natural hazards allowance.
The insurer already returned A$4.1 billion to shareholders this year after selling its banking business to ANZ.
Write to Stuart Condie at stuart.condie@wsj.com
(END) Dow Jones Newswires
05-07-25 2008ET
