Partners Life has posted a 13% drop in annual profit as theoretical long-term liability increased driven by persistently low interest rates.
Net profit fell to $9.7 million in the 12 months ended March, from $11.1m a year earlier, according to its annual report lodged with the Companies Office.
Underlying earnings slipped to $12.5m from $12.6m, even as premium revenue rose 24 per cent to $171.5m, outpacing a 22 per cent increase in claims to $71m and a 7 per cent gain in operating costs to $42.2m.
Sean Kam, Partners Life chief financial officer, told the NZ Herald that the life insurer’s financial result has “once again been underpinned by significant growth” in in-force book and balance sheet.
"We retained our leading new business market share position for risk business sold via independent financial advisers, and this was reflected in our premium income,” he said.
Following the insurer’s $200 million agreement with Blackstone in May last year, Partners Life solvency margin, however, surged 150% up to $73.5 million from $25.6 million a year ago.
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