Insurance has contributed $1.03 billion to Commonwealth Bank’s annual profit, up 8% as CommInsure’s general insurance income grew 40%.

Total CommInsure insurance income increased 5% to $716 million for the year to June 30, with improved claims experience in general insurance and retail life partly offset by group life claims and higher lapse rates in retail life.

General insurance business increased on premium growth of 19% and fewer claims, with strong sales through the bank’s branch network.

Wholesale life net revenue “declined significantly due to unfavourable claims experience and claims reserve increases”.

Commonwealth’s entire insurance business reported an 11% rise in premiums to $2.53 billion. Claims and policyholder liability expense also increased 11%, to $1.58 billion.

Insurance income from the New Zealand insurance business grew 9% to $247 million and IFS Asia recorded a 12% rise to $75 million, with strong growth in China and Indonesia.

Annual premiums at June 30 comprised $875 million in retail life, $692 million in wholesale life and $598 million in general insurance.

Commonwealth Bank increased group profit by 8% to a record $7.68 billion.