The life insurance arm of BT Financial Group has posted stable cash earnings of $88 million for the half year to March 2016 with inforce premiums growing by 4% to $927 million.
BTFG offers life insurance via Westpac Life Insurance and St George Life Insurance and while inforce premiums across the two businesses was higher than for the half year to September 2015 new business fell by around $30 million, while lapse rates reminded steady around $58 million in March, compared to $57 million in September.
In its statement of results to the Australian Stock Exchange, Westpac – owner of BTFG – said the drop in new sales were due to a decline in advice sales and seasonal factors
BTFG, Chief Executive, Brad Cooper said despite the level performance BTFG paid more than $275 million in life insurance claims in 2015
“Life insurance remains a topic of interest and I am incredibly proud of our genuine ‘customer first’ culture which has allowed us to standout in the market.
“We were the first retail insurer to extend the life expectancy time provision for terminal illness conditions, from 12 months to 24 months and last year we were the only company awarded the top ‘A*’ rating from The Risk Store, reflecting our excellence in claims processes and customer service,” Cooper said.
Collectively, BTFG contributed $452 million of cash earnings to the total Westpac Group result of $3.9 billion of cash earnings.
