The support from independent financial advisers has been instrumental in Asteron Life’s 25% growth in new business during the year ended June 30 (FY23), according to executive general manager Grant Willis (pictured), whose camp enjoyed a 233% rise in profit after tax in FY23.
Asteron Life reported a profit after tax of $50 million in the period, with in-force premium up 6.7% and amid favourable market adjustments and growth in planned profit margins.
“We value our relationship with advisers and the partnership they have with us in supporting customers through every part of their life Insurance journey, from new business through to claims,” Willis said.
“We were independently rated number one this year for adviser relationships and claims management, with our adviser net promoter score rising from 44% to 66%. This has contributed to a new business market share increase from [March’s] 10.5%-11.3%.”
While putting a spotlight on the intermediary space, the Asteron Life executive general manager also cited the “solid performance” from direct channel AA Life. Additionally, Willis credited the Asteron Life roster for how Suncorp New Zealand’s life insurance business is sustainably managed.
“I’m proud of the efforts that our people continue to put into ensuring customers are provided the best level of service and support particularly at claims time where, again, we have very high claims acceptance ratios averaging 94%,” Willis said.
The positive results from Suncorp New Zealand’s life insurance operations helped offset the decrease in the general insurance profit.
According to Suncorp NZ’s earnings report, general insurance profit after tax in FY23 amounted to $65 million – a 56.7% drop from the previous financial year. Impacting the general insurance segment, the North Island floods and Cyclone Gabrielle resulted in adverse natural hazards claims experience and additional reinsurance reinstatement premiums.
More broadly, Suncorp New Zealand’s profit after tax fell by 30% to $115 million.
Meanwhile, commenting on the life insurance numbers, Suncorp NZ chief executive Jimmy Higgins said: “It was great to see the strong result from Life driven by the focus on supporting customers and advisers through these difficult times, which in turn has been rewarded with excellent new business growth and ongoing market-leading retention.”
Referring to the wider business, the CEO went on to say: “Looking forward, there is still some uncertainty on the economic recovery for New Zealand, and the impact of the broader cost-of-living pressures on our customers remains a key concern as we reset our risk models to address the rising cost of reinsurance.
“We will remain focussed on supporting our existing customers impacted by the recent weather events, and also ensure broader insurance protection is available to meet the needs of New Zealanders.”
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