Fitch has lifted Suncorp Group’s long-term issuer default rating to A+ from A, reflecting updated rating criteria for Australia.

The insurer financial strength (IFS) rating of Suncorp’s non-life business AAI has risen to AA- from A+.

The outlooks are stable.

Fitch says the upgraded IFS rating also recognises the general insurance business’ strength.

“The group has been able to maintain a dominant market position, and has strengthened its operating performance and earnings despite increased competition from new entrants and insurance increasingly being offered through non-traditional distribution channels.”

The large banking operation offsets the strength of the insurance operation.