National Australia Bank (NAB) has confirmed itself as being among those currently feeling some pain within its insurance portfolio.
In a third quarter trading update released to the Australian Securities Exchange (ASX) yesterday, the big banking group painted a broadly positive picture with unaudited cash earnings rising to around $1.5 million, but acknowledged the insurance issue within NAB Wealth.
It said that while cash earnings were broadly stable for the quarter, “insurance claims were higher, with unfavourable experience in group and lump sum partially offset by lower disability claims”.
However it said the NAB Wealth Investment business had benefited from higher funds under management, stronger earnings in Private Wealth and the sale of the Group’s interest in US-based fund manager, AREA Property Partners.
NAB chief executive Cameron Clyne described the third quarter result as “solid”.
