Asteron Life Reports Premium Growth Despite ‘Challenging Environment’

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Suncorp New Zealand’s life insurance business Asteron Life delivered an underlying profit after tax of $38 million in the year to June 2022. The firm also saw in-force premium growth of 4% and experienced strong retention rates, says the firm in a statement

Executive General Manager Life Grant Willis says it was a challenging year for Asteron Life customers, advisers, and the Asteron team.

“Due to a combination of Covid-19 restrictions and business disruptions from ongoing regulatory and licensing changes, our advisers experienced a challenging environment but continually adapted to assist customers while in lockdown and when other restrictions were in place,” says Willis.

The firm’s claims acceptance rate stands at 95% and it reported profit after tax to $15 million, down $23 million on the prior corresponding period. New business was $18 million.

Grant Willis, Head of Life at Asteron Life.
Grant Willis, Executive General Manager Life, at Asteron Life.

Willis says its partnership with Best Doctors continues to provide customers with virtual medical support through its mental health navigation tool and options to obtain second opinions on health issues by offshore specialists.

“This has provided excellent value to our customers throughout the pandemic,” he says.

Suncorp New Zealand CEO Jimmy Higgins says a key focus for Asteron Life is to continue its digital transformation.

Higgins says: “The current environment presents challenging headwinds from economic factors and New Zealand health system constraints, together with emerging risks around potential impacts of long Covid and regulatory disruption from the proposed New Zealand Income Insurance Scheme.

“However, the business is monitoring the risks and is well placed to meet these challenges”.