Suncorp’s H1 2017 results revealed their key value drivers are gaining positive momentum. Going forward we believe the company is uniquely positioned to deliver improving shareholder returns, offering an exceptional combination of both value and growth for investors. Across the group, increased earnings will be driven by mid-single digit revenue growth, flat costs and a favourable macro environment for their $13b investment portfolio. Furthermore, the potential sale of their Life insurance business will add to their excess levels of capital and improve returns across the group. With a positive outlook and compelling valuation metrics, Suncorp will continue to be a core holding for the K2 Australian Absolute Return Fund. These results give us further confidence that new management has the potential to exceed expectations.
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