Suncorp New Zealand, owner of Asteron Life, made an after-tax profit of $115m for the year to 30 June – a 30% reduction on the previous year.
Significant weather events, a 50% increase in natural disaster claims, reinsurance increases, and claims inflation led to a general insurance profit of $65m, down 56% on the previous financial year.
However, this reduced performance was partially offset by Asteron Life which made a profit of $50m, up $35m on the previous year. The life insurance arm saw a 25% increase in new business and in-force premium growth of 6.7%.
Asteron Life’s Executive General Manager, Grant Willis, says the support and engagement from independent financial advisers are a key factor in the new business growth.
“We value our relationship with advisers and the partnership they have with us in supporting customers through every part of their life insurance journey, from new business through to claims,” says Willis.
Suncorp NZ CEO Jimmy Higgins says the company’s support of Asteron’s customers and advisers has been rewarded with “…excellent new business growth and ongoing market leading retention”.
“Looking forward, there is still some uncertainty on the economic recovery for New Zealand, and the impact of the broader cost of living pressures on our customers remains a key concern as we reset our risk models to address the rising cost of reinsurance,” says Higgins.