CommInsure’s insurance income rose 12% to $960 million in the year to June 30, driven by a 10% growth of average inforce premiums to $2.27 billion, according to the Commonwealth Bank’s annual report.

Improved claims experience and lapse rates in the New Zealand life insurance business was partly offset by unfavourable life and general claims in Australia.

Cash after-tax profit for CommInsure was $299 million, down 2% on the previous year.

Retail life saw annual inforce new business premiums up $216 million while lapses were $144 million for the 12 months.

Total retail annual inforce premiums at June 30 were $815 million, up 10% on the previous year with the bank distribution channel driving the stronger performance.

Group life saw $263 million of new annual inforce premiums with $73 million of lapses. Total group annual inforce premiums at June 30 were $651 million.

General insurance new annual inforce premium were $120 million offset with $51 million of lapses. Total annual inforce premiums at June 30 were $505 million.

NZ insurance income was up 7% to $NZ274 million ($217.5 million) driven by new business growth and improved lapse rates. New business sales saw $NZ98 million ($78.4 million), up 13%, while lapses were $NZ58 million ($46.4 million), a 5% increase.

Asian insurance income rose 43% to $67 million with Indonesia reporting 39% inforce premium growth and China a 38% increase.

Reinsurance premiums for the life business were $249 million in the 2012 financial year compared to $221 million in the previous 12 months.

CommInsure recovered $228 million from reinsurance in 2012, up from $22 million in the 2011 financial year.