Page 58 - Suncorp_Review

56

Notes to the consolidated fnancial statements (continued)

for the year ended 30 June 2011

5. Segment reporting

Operating segments are identifed based on separate fnancial information which is regularly reviewed by the Group Chief Executive Offcer and his immediate executive team, representing the Suncorp Group’s Chief Operating Decision Maker (CODM), in assessing performance and determining the allocation of resources. The Suncorp Group’s operating segments are determined based on their business activities as described in note 5.1 below.

5.1 Operating segments

The Suncorp Group comprises the following operating segments:

SEGMENT BUSINESS AREA BUSINESS ACTIVITIES

Personal Insurance (Personal)

General Insurance Provision of personal insurance products to customers in Australia including home

and contents insurance, motor insurance and travel insurance.

Commercial Insurance (Commercial)

General Insurance Provision of commercial insurance products to customers in Australia including

commercial motor insurance, commercial property insurance, marine insurance, industrial special risks insurance, public liability and professional indemnity insurance, workers’ compensation insurance and compulsory third party insurance.

General Insurance – New Zealand (GI NZ)

General Insurance Provision of general insurance products to customers in New Zealand including

home and contents insurance, marine insurance, business insurance, rural insurance, construction and engineering insurance, travel insurance, public liability and professional indemnity, and directors’ and offcers’ liability.

Banking Banking Provision of personal and commercial banking, agribusiness, property and

equipment fnance, home, personal and small business loans, savings and transaction accounts and foreign exchange and treasury products and services in Australia.

Life Life Provision of life insurance products, superannuation administration services,

fnancial planning and funds administration services in Australia and New Zealand.

Corporate Corporate Investment of the Suncorp Group’s surplus capital, Suncorp Group business

strategy activities (including business combinations and divestments) and Suncorp Group shared services.

While proft or loss information are reviewed by the CODM at an operating segment level, assets and liabilities information are reviewed by the CODM at a business area level. Business areas are equivalent to operating segments except for the Personal Insurance, Commercial Insurance and General Insurance New Zealand operating segments which are aggregated as the General Insurance business area.

Segment results presented below are measured on a consistent basis to how they are reported to the CODM:

–– Revenues and expenses occurring between segments are subject to contractual agreements between the legal entities comprising each segment.

–– Inter-segment transactions which are eliminated on consolidation are reported on a gross basis except for operating expenses incurred by one segment on behalf of another which are recharged on a cost-recovery basis that are presented on a net basis (post allocation basis).

–– Intra-group dividends are presented net of eliminations.

–– Consolidated gain or loss on sale of subsidiaries and joint ventures and any amortisation of business combination acquired intangible assets are allocated to the Corporate segment regardless of whether the related assets and liabilities are included in the Corporate segment assets and liabilities.

–– Depreciation and amortisation expenses relating to the Corporate segment’s property, plant and equipment and non-business combination acquired intangible assets are allocated to other segments based on their utilisation. –– Goodwill is allocated to each operating segment on a consistent basis to goodwill impairment testing (note 18.1).