TAL business grows under new owners
Life insurance group TAL has recorded an increase in revenue, premiums and net profit after tax under new Japanese parent company Dai-ichi Life.
TAL, which changed its name from Tower when the Dai-ichi acquisition was completed around May 2011, increased revenue by 9 per cent to $1.195 billion for the six months to 31 September 2012 compared to the prior corresponding period (PCP). Net profit after tax increased 8 per cent over the PCP to $68 million.
Underlying profit (obtained by removing the effect of non-cash items such as amortisation and changes in discount rates) rose by 26 per cent to $70 million over the same period, TAL reported.
In-force premiums increased from $1.39 billion to $1.52 billion, new premiums were up from $123 million to $196 million, individual risk sales grew from $96 million to $109 million, and group sales rose from $26 million to $86 million. TAL's embedded value has grown by 12 per cent to $1.792 billion since March this year, the company reported.
TAL managing director Jim Minto said TAL continues to implement a strategy of developing a multi-channel distribution model.
"In this period we have seen the market impacts of higher claims and lapses as reported by most other life insurers. We have been able to manage these effects reasonably well although we will continue to be very vigilant," he said.
The results were reported based on a Japanese GAAP (generally accepted accounting principles) basis, which has several differences from US GAAP, including how income from insurance premiums is recognised.
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