Life market suffers reduced inflows
Life insurance premium inflows declined in the 12 months to the end of June despite surges in the group superannuation investment and risk markets, according to figures released by Plan For Life.
Life insurance premiums fell by 3.2 per cent over the period from $39.4 billion to $38.1 billion. Declines in premium inflows were experienced in the ordinary non-superannuation market as well as the individual superannuation market. Inflows into retirement income premiums was also lower, Plan For Life says.
Retirement income premiums decreased by 6 per cent, while ordinary non-super premium inflows were down by more than 25 per cent. However, there were two noticeable exceptions to the severe decrease in ordinary premium inflows: American International, which increased premiums by more than 26 per cent and ING, which increased inflows by more than 5 per cent.
Group superannuation premiums inflows bucked the trend to record a growth of 14 per cent with Zurich (81 per cent), Suncorp (69 per cent), Tower (41 per cent) and Westpac (39 per cent) all recording healthy inflows.
But in the individual super market, premium inflows fell off by almost 15 per cent. The big losers were Commonwealth/Colonial (negative 34 per cent), Westpac (negative 33 per cent) and AMP (negative 24 per cent). However, Macquarie, National/MLC and ING all went against the tide to post positive growth in inflows of 43, 17 and 13 per cent respectively.
The inflows in the risk market also bloomed, surging 11 per cent, with Citicorp and Westpac experiencing growth of more than 30 and 26 per cent respectively.
Overall, Suncorp, Challenger and Citicorp all enjoyed general growth of inflows of above 25 per cent, while the inflows of the Commonwealth and Westpac banks fell by more than 20 per cent.
Recommended for you
Centrepoint Alliance has the opportunity to sneak up from behind while the three major licensees are distracted as chief executive John Shuttleworth tells Money Management that it aims to “be stable in a sea of turmoil”.
The financial advice profession has seen double-digit adviser losses over the past week, including six advisers who departed Australia’s largest advice licensee.
Regal Partners has grown funds under management to $12.2 billion and flagged it may consider smaller bolt-on acquisitions, having withdrawn a bid last year for Pacific Current Group.
BT is offering its first private markets managed account on the BT Panorama platform as interest in alternatives grow among high-net-worth investors.