Australia’s largest life insurer TAL continues to pay out record benefits and claims while maintaining its strong performance, financial results for the six months to 30 September 2014 show.
Results released by TAL’s ultimate parent, Dai-ichi Life, show TAL’s underlying profit for the six months to 30 September 2014 was $78 million, up from $46 million in the previous comparative period. This result was 69% higher than the weaker first half last year.
Net profit after tax was $71 million, compared to $29 million previously, while ordinary revenues rose 16% to $1.585 billion and claims paid were up $37 million to $491 million over the period. Net profit was affected by one-offs such as interest rate changes, although TAL prefers the underlying profit measure.
TAL’s embedded value grew by $221 million to $2.179 billion.
TAL Group CEO and Managing Director Jim Minto said he was pleased with the result in what have been difficult market conditions.
“TAL has been focusing on the long term sustainability of the business. We have been delivering for customers for 145 years and want to ensure we continue to do so sustainably for many decades to come.
“Significant challenges remain across the industry in terms of claims experience, regulatory change and an increasing focus on the quality of advice and product sustainability.”
“TAL continues to enhance its claims management with a focus on ‘return to health and work’ initiatives and we are focussed on generating greater business efficiency.”
“This is all part of our over-arching strategy of delivering sustainable products and services to our customers and partners. Central to this strategy is a multi-channel approach to provide freedom of choice to customers so they can obtain financial protection in ways and means of their choosing.”
