Mixed results from Australian insurers in a tough first six months

Australia’s life market
proved to be tough going in the first half of 2010, with premium
income falling 3% compared with the first half of 2009 to A$37.5bn
($37.5bn), reported actuarial consultancy Plan For Life
(PFL).

According to PFL, only the
risk insurance sector enjoyed significant growth, with premium
income rising 12.2%, while group superannuation investment business
also increased, but only by 2.5%.

All the other market sectors
were down, with individual superannuation investment recording the
largest percentage drop – 16% – followed by retirement income down
by 8.6%.

Despite the overall tough
market, a number of large to medium insurers enjoyed double digit
annualised inflow growth rates.

Top performer was Challenger
which saw premium income leap 83%, followed by Tower (33.1%),
Macquarie Life (32%), AIA Australia (16%) and ING Australia
(13.3%).

Major losers were ClearView
Life, which recorded a 21.6% fall in premium income, Suncorp
(-16.5%) and AMP (-15.8%).

Suncorp fared particularly badly in the retirement income
sector, recording a 74.3% slump in premium income.

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