Australia's leading life insurance specialist TAL today announced it has ended the financial year (1 April 2014 – 31 March 2015) with solid growth while showing a substantial increase in life and disability claims payouts.
Financial results released by TAL's Japanese parent, Dai-ichi Life, reflect that TAL's premium income was up 21% to $2,234.9 million, claims payments up 16% to $1,030.0 million and underlying profit after tax rose 12% to $146.6 million.
TAL Group CEO, Brett Clark said: "We have been able to grow the business consistently in each of the four years of full ownership by Dai-ichi Life. We attribute this success to an unwavering focus on our core business and customers, and a strong partnership focus with our business partners".
"Considerable change is impacting life insurance markets. A vibrant and sustainable life insurance industry depends on the ability of all stakeholders to produce sustainable performance and financial results on an on-going basis. At the same time I see simultaneous rising life insurance payouts as a strong signal life insurance is doing what it should – helping Australians when they need us most" he said.
TAL is now the number one insurer in terms of market share and Annualised Premium Income (API). Paying more than $1,030.0 million over the financial year, TAL paid an average of $4.1 million each working day to customers.
"Our products and services have been well-received in the market and we are now insuring one in four Australians. We paid out a billion dollars in claim payments last year, with the majority of payouts going to those unable to work or affected by illness in some way."
"Most of our claims payments now go to help people get back on their feet, meet their ongoing obligations and achieve their future aspirations despite illness or injury" Mr Clark said.
Net profit after tax for the year was $131.5 million. Net profit after tax includes policy valuation adjustments owing to changes in interest rates. Underlying profit after tax of $146.6 million, removes the impact of this valuation adjustment, other investment income related movements and amortisation of intangibles.
In force premiums increased by 5% to $2,255 million, while TAL's embedded value grew by 32% to $2,584 million over the financial year.