New lump sum risk product business increased in the June quarter after two quarters of falling sales, according to research house DEXX&R.
The firm’s Life Analysis report shows new lump sum risk business in the June 2016 quarter totalled $308 million, an increase of 13 per cent compared with the March 2016 quarter.
However, new business was 4 per cent down on the $321 million recorded in the June 2015 quarter.
“The industry wrote $1.26 billion of lump sum new business in the 12 months ending June 2016, marginally down on the $1.29 billion recorded in the year to June 2015,” the report said.
“Amongst the top ten life companies, AMP, MLC, TAL, AIA Australia and ClearView recorded an increase in lump sum new business for the year ending June 2016.”
TAL recorded a 146 per cent increase in total new premiums, with $549.18 million in new risk sales, a rise from the $223.25 million recorded in June 2015.
Total in-force group risk business increased by 12 per cent to $6.1 billion for the year ending June 2016, up from $5.5 billion recorded in June 2015.
“Total in-force business, individual and group, written by direct life companies increased by 8 per cent to $15.1 billion over the year to June 2016, up from $14 billion at June 2015,” the report said.
Of the top five companies by market share, TAL, AIA Australia, CommInsure and MLC increased their in-force group premiums over the 12 months to June 2016.
AIA Australia recorded the largest market share, with $1.67 billion in group annual premiums and a 27.3 per cent market share, while TAL had the largest increase in market share, rising 27.1 per cent to $1.63 billion in group annual premiums and a 26.7 per cent market share.