TAL maintains profit despite record claims
Big life insurer TAL has managed to withstand record claims experience and premium pressure to maintain profit levels for the 12 months to 31 March, broadly in line with those of last year.
The company's Japanese parent, Dai-Ichi Life, today released the Australian entity's result showing net profit after tax (NPAT) was down just 1 per cent to $90 million, compared to an NPAT of $91 million the year before.
However the Australian company emphasised that the result had been achieved in the face of "record claims payouts".
The TAL data revealed there had been an increase in underlying profit of 6 per cent to $131 million, while premium and other revenue rose 24 per cent to $2.3 billion.
However the crucial figure to emerge from the data was that total claims for the period paid rose 38 per cent to $885 million.
TAL Group chief executive Jim Minto chose to look at the positive elements of the company's claims experience while highlighting that it had grown its underlying profit in each of the three years of full ownership by Dai-ichi Life.
"We are paying more claims than ever, delivering tremendous social purpose for the people of Australia. We have maintained our profit levels through effective risk management and long-term planning as we look to the decades ahead," he said.
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