The financial results update for life insurers provides an overview of operating earnings and actual/planned margins, annual premium in force (API) and commentary on individual life insurers.
The May 2016 reporting season showed that operating earnings remained high relative to the last few years and is broadly stable from the previous half year update.
Some companies are citing limited growth in API in the Retail space which appears to be driven by age and inflation related pricing increases and improvements in lapses due to retention initiatives across the industry.
Contrasting this, other insurers have demonstrated strong growth with many carefully balancing value of business against volume of business achieved. It is also evident that life insurers are facing ongoing challenges arising from regulatory change, slowing API growth and sales, and pressure on margins particularly in relation to their Income Protection business.
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