Just a day after the Commonwealth Bank confirmed the substantial demerger of its Colonial First State business together with Aussie Home Loans and Count Financial, new data appears to have validated the decision of National Australia Bank to divest most of its life insurance business.
The data, collected by research house Dexx&r, has revealed that MLC Life, which is now majority-owned by Japan’s Nippon Life, has overtaken AMP Limited as Australia’s third largest life insurer in terms of in-force risk annual premium.
The Dexx&r data reveals that as things currently stand TAL is the largest life insurer with 18.1 per cent market share, followed by AIA with 15.6 per cent, followed by MLC Life with 12.3 per cent, then AMP Limited with 11.9 per cent and then OnePath with 10.2 per cent.
However, it confirms that once AIA completes its acquisition of CommInsure it will become the largest player with 23.8 per cent market share, followed by TAL with 18.1 per cent, with Zurich’s acquisition of OnePath giving it 14.5 per cent, and then MLC Life with 12.3 per cent and AMP with 11.9 per cent.
The CommInsure and OnePath acquisitions by AIA and Zurich are expected to be completed before the end of the year.
The Dexx&r data revealed that in the year to March, the life/risk industry wrote $1.31 billion of lump sum new business with five of the top 10 life companies recording an increase in lump sum new business, led by Zurich, which recorded an 18.8 per cent increase to $163 million, and AIA, which recorded an 11.8 per cent increase to $74 million.
