TAL Experiences Record Claims

Life insurer TAL has reported close to a 40% increase in claims over the past 12 months.

Delivering its annual financial results, TAL’s parent company, Dai-ichi Life, reported that profits were down 1% year on year, due in part to record claims payouts. TAL paid $885 million in claims in the 12 months to 31 March 2014, representing a 38% upsurge on the previous period.

The increased claims rate was offset by an increase in underlying profit, growing 6% to $131 million, and other revenue, which rose 24% to $2.3 billion. New business was up 128% to $728 million.

TAL Group CEO, Jim Minto, said the insurer was proud to have delivered record claims payments to help families and individuals in times of need.

“We are paying more claims than ever delivering tremendous social purpose for the people of Australia. We have maintained our profit levels through effective risk management and long term planning as we look to the decades ahead.

“Long term sustainability is critical for the life insurance industry and that is why we work closely with our business partners to help ensure benefits are affordable and sustainable for our customers well into the future so we are there for them when they need us,” Mr Minto said.

TAL recently took over from AMP as the leading Australian insurer in terms of market share (see: TAL Overtakes AMP for Primary Market Share Position).