SUNCORP GROUP LIMITED — Capital/Financing Update 2010

Oct 27, 2010

28 October 2010

SUNCORP TO SIMPLIFY GROUP STRUCTURE

Suncorp today confirmed its intention to simplify further the Group by moving to a non-operating holding company (NOHC) structure.

The transition will be subject to shareholder votes at General Meetings, which are expected to be held in December 2010, as well as regulatory and other approvals. Full details of the proposal will be sent to all shareholders in mid November.

Chairman John Story said the implementation of a NOHC structure, most recently signalled at Suncorp’s full year results announcement in August, was the next logical step in the Group’s simplification agenda, and would help support its strategic plans.

“Much has already been done to align Suncorp’s legal and operating structures since the Promina merger – the internal reorganisation of our existing businesses under a NOHC is the next phase in this process and would provide the Group with a number of benefits,” he said.

These will include:

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• Simplification – aligning the Group’s corporate structure with its current business model and operating structure;

• Transparency – greater external and internal transparency. Externally, the new structure will convey to the market a clearer understanding of the quality and value of each of the Group’s businesses. Internally, it will be easier to set and measure progress against specific business objectives.

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• Regulation – the proposed NOHC Restructure will facilitate the regulatory supervision of the Suncorp Group, and reflects the anticipated future prudential frameworks for financial conglomerates.

Under a NOHC structure, a new ASX-listed parent non-operating holding company, Suncorp Group Limited, would be established for the Group through a scheme of arrangement. Its three major lines of business – General Insurance, Banking and Life Insurance – would be aligned under separate non-operating holding companies.

The implementation of a NOHC would not change Suncorp’s Board, management structure or other governance and regulatory frameworks. Nor would it change the way Suncorp interacts with its shareholders, customers and employees.

Ends

For more information: Media – Jamin Smith, 07 3135 4321. Analysts / institutional investors – Mark Ley, 07 3135 3991. Retail shareholders – Link Market Services, 1300 882 012.