Suncorp-Metway has downplayed the improvement of its profitability, saying it has merely laid a foundation for future growth.

"We still have a long way to go, but I hope I have given people the feeling that we are on top of it all," Suncorp-Metway chief executive Patrick Snowball said.

Suncorp-Metway recorded a net profit after tax of $364 million for the six months to 31 December 2009, a rise of 41 per cent compared to the same period in 2008.

Last year, the group was struggling due to bad debts and high pay-outs related to storms and bushfires.

"Although the increase in profitability is welcome, we have got to understand that we are coming off a very low point," Snowball said.

"If I add up the profit of this half, it is actually greater than the profit of the whole of last year. That puts it in perspective," he said.

Investors were disappointed with the insurer's decision to pay out a dividend that was lower than the company's usual ratio.

Suncorp declared a dividend of 15 cents a share, which represents a pay-out ratio of 46 per cent. That is slightly below the company's policy of paying out 50-60 per cent of its earnings, and is 5 cents below last year's interim dividend.

Snowball denied the move reflected a lower-than-expected result. "We haven't changed our guidance," he said.

"Our capital position is good, but I felt in this very fast changing and uncertain world to retain an element of flexibility on the balance sheet was the best thing to do," Snowball said.

The uncertainty is mainly created by impending regulatory change, which could see changes in capital requirements, nervousness around the economic climate, and the unwinding of the global financial crisis, he said.

The insurer continues to streamline its operations and said it will sell its joint venture insurance arms of the Royal Automobile Club of Queensland and the Royal Automobile Association of South Australia back to the motor clubs.

The joint ventures have a combined book value of $130 million.