Gloom is good for Comminsure life sales
The economic downturn’s influence on a resurgence in life insurance has helped market leader Comminsure report 23% growth in first-quarter premiums, which climbed to $1.5 billion, against $1.16 billion a year earlier.
Growth from December to March was 9%, including a $66 million contribution from St Andrew’s Australia, which the Commonwealth Bank bought last October along with BankWest from UK-based HBOS.
Retail life premiums rose by $21 million from December to March, compared with $17 million a year earlier while wholesale life was up $20 million (from $18 million) and general insurance down at $19 million (from $27 million).
Claims from the Victorian bushfires and Queensland storms are forecast to push up general insurance claims in Comminsure’s second half.
Credit Suisse analyst Arjan van Veen says Comminsure is achieving good top-line growth from improving margins on life insurance as sales efforts are for now diverted away from wealth management into life insurance. But the general insurance result is likely to be less satisfying.
“Comminsure’s general insurance results haven’t been particularly flash for a number of years,” Mr van Veen told insuranceNEWS.com.au. “Most of the stuff they write at the moment is still home and contents, and if you look at any of the major insurers they wouldn’t have made a lot of money with all the storm claims.”
Growth from December to March was 9%, including a $66 million contribution from St Andrew’s Australia, which the Commonwealth Bank bought last October along with BankWest from UK-based HBOS.
Retail life premiums rose by $21 million from December to March, compared with $17 million a year earlier while wholesale life was up $20 million (from $18 million) and general insurance down at $19 million (from $27 million).
Claims from the Victorian bushfires and Queensland storms are forecast to push up general insurance claims in Comminsure’s second half.
Credit Suisse analyst Arjan van Veen says Comminsure is achieving good top-line growth from improving margins on life insurance as sales efforts are for now diverted away from wealth management into life insurance. But the general insurance result is likely to be less satisfying.
“Comminsure’s general insurance results haven’t been particularly flash for a number of years,” Mr van Veen told insuranceNEWS.com.au. “Most of the stuff they write at the moment is still home and contents, and if you look at any of the major insurers they wouldn’t have made a lot of money with all the storm claims.”