Good first half for CommInsure

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20 February 2012

CommInsure has reported an 8% increase in average inforce premiums to $2.1 billion for the half-year to December 31.

The business made an underlying after-tax profit of $140 million for the half-year, down 8% on the corresponding period in 2010/11 financial year.

According to Commonwealth Bank’s investor presentation, CommInsure’s retail life business performance is solid, with the bank’s branch network driving 11% growth in retail life inforce premiums to $781 million.

The lapse rate for the half-year was $70 million, while new business sales were $108 million.

The company says consumer credit insurance claims were good for the year, but there were claim problems in disability products.

CommInsure’s group life business generated strong volume growth, but this was tempered with unfavourable claims from industry funds.

Group life annual inforce premiums for the half-year were $558 million with $37 million of lapses. New business sales for the half-year were $53 million.

CommInsure’s general insurance business reported volume growth of 10% and improved claims management.

Annual inforce premiums for general insurance for the half year were $468 million with $26 million of lapses. New sales account for $58 million of that total.

The Commonwealth Bank reported a 19% increase in its half-year net after-tax profit to $3.6 billion.