AIA Australia will leap to the top of the largest life insurance companies in Australia following its impending purchase of CommInsure, according to research house, DEXX&R.
According to the research house, the combined AIA Australia/CommInsure business (see: CommInsure to be Sold to AIA) will hold 25 per cent market share and $3.92 billion of in-force premiums, across its group and retail insurance books.
TAL will move into second place with 18.2% market share and $2.84 billion of in-force premium, AMP and MLC will share third place with 12.3% market share and $1.92 billion of in-force premium.
DEXX&R released the figures, which are applicable to 30 June 2017, as part of its latest Life Analysis Report which stated the life insurance sector wrote $1.31 billion of lump sum new business in the 12 months to the June 2017, up 1.4% on the the $1.29 billion recorded for the year to the end of June 2016.
…the combined AIA Australia/CommInsure business will hold 25 per cent market share and $3.92 billion of in-force premiums…
In this area, TAL was only one of three life insurers to record an increase in lump sum new business for the year to June 2016 with a 5.1% increase to $167 million while MLC recorded a 0.8% increase to $199 million and AIA Australia recorded a 0.9% increase to $67 million.
The growth across the year was not reflected in the June 2017 quarter where new individual lump sum business was $291 million, a decrease of $16 million, or 5.3%, on the March 2017 quarter.
Individual lump sum discontinuances also continued to fall away after peaking during June 2013 at 15.9%, dropping to 13.4% at the end of the June 2017 quarter.
Disability Income new business increased marginally, up 0.9% to $503 million over the year to June 2017 compared to the $499 million recorded in the twelve months to June 2016, and increased by 7.3%, or by $120 million, in the June 2017 quarter compared to the $111 million recorded in the March 2017 quarter.
Disability income discontinuances also dropped off from its June 2013 peak of 16% continuing a five year trend and moving from 13.9% at June 2016 to 13.3% at June 2017.
