Results released by TAL’s parent company, Dai-ichi Life, indicated new business had grown by 33 per cent compared to the same period last year, to $261 million, and that total in-force premiums grew 16 per cent to $1.76 billion.
According to TAL, embedded value over the period grew by $132 million to $1.894 billion.
Annual net profit from the previous period declined, however, falling from $68 million to $29 million this period.
There was also a drop in underlying profit, from $70 million in the previous corresponding period to $46 million.
TAL Group CEO and managing director Jim Minto said this was mainly the result of a negative experience for claims this year against a favourable claims experience in the previous year.
Mr Minto said this reporting season revealed a higher level of claims and lapses than insurers had expected.
“While TAL has also seen larger effects from claims, we have, partly as a result of price adjustments, been able to continue to grow TAL to become Australia’s second largest life insurer as measured by in-force premiums,” he said.
According to TAL, the company received a high level of claims on living insurance products including disability, income protection and trauma cover.
“The really good news is people are accessing and getting major benefit from their life insurance in this period of higher claims,” Mr Minto said.
He said TAL would continue its efforts to reduce lapses occurring at higher than planned levels across the industry.
“A key element was to better inform and educate customers about the high value of life insurance which can forestall a financial crisis when an income suddenly stops, permanently or for an extended period,” he said.
