Australian Unity’s life insurance premiums have fallen, but the dip has been countered by a reduction in claims.

Premium income for the year to June 30 was $239,000, compared with $349,000 the previous year. The mutual paid out $1.9 billion in claims, down from $2.6 billion.

Total income for Australian Unity’s Personal Financial Services division was $18 million, almost double the previous year’s $9.23 million.

But the division still reported a $2.64 million pre-tax loss in 2011/12, down from a $4.56 million loss the previous year.

Australian Unity Group MD Rohan Mead says acquisitions during the year affected the advice division.

“I am particularly pleased that, after some years of investment by the group, the Personal Financial Services business began posting positive monthly financial contributions in the second half of the year,” he said.

“Personal Financial Services is on track to produce a maiden annual positive result in the year to June 30 2013.”

The number of advisers in the division has risen 54% to 109 at June 30.

Overall, Australian Unity reported a 12.8% drop in profits to $22.3 million in 2011/12. This was despite a 10.6% rise in revenue to $1.12 billion.

Mr Mead says the operating environment, both economic and regulatory, is difficult.

“While the external environment affected our overall result, the group significantly expanded its operating base by joining with Big Sky Credit Union,” he said.

“The credit union business combined with the Lifeplan Australia Building Society to form the Big Sky Building Society, bringing more than 30,000 new members and customers into the group.”

Mr Mead says the mutual’s healthcare business contributed to the group, generating revenues of $647.4 million in 2011/12. The division’s pre-tax profit was $52.7 million.

“The corporate health fund, GU Health, is growing policyholder numbers by 16.7% and the retail fund by 6.1%,” Mr Mead said. “Both businesses were well above the industry average growth rate (3.7%) for the second consecutive year.”

Australian Unity’s 13% stake in Calliden Group is not performing so well. It has been written down from $8.9 million in 2010/11 to $5.6 million at June 30.