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Record claims hit TAL profits

Life insurer TAL has recorded a net profit after tax of $90 million for the 12 months to March 31, a one per cent decline from the $91 million profit the previous year, accounted for by rising claims.

TAL increased its underlying profit by six per cent to $131 million and its premium and other revenue by 24 per cent to $2.3 billion.

Total claims for the period, however, rose by 38 per cent to $885 million.

New business for the year grew by 128 per cent to $728 million while TAL’s embedded value grew $195 million to $1.957 billion in the period.

TAL chief executive Jim Minto said in a results announcement that since coming under the ownership of Dai-ichi Life three years ago, TAL has “grown its underlying profit in what has been a very successful growth period for the company in a market that is going through significant change”.

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

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