CommInsure’s income for the 2011 financial year was down 9% to $856 million due to high claims from both the wholesale and retail business.

Part of the fall was also due to the sale of the St Andrew’s Insurance business in July last year which removed $54 million of income based on 2010 figures.

The higher life insurance claims and the St Andrew’s sale resulted in the business making an 11% fall in underlying profit to $254 million for the year.

In its stock market report on the results, the bank says higher claims in its income protection business and group life insurance led to the fall, but new business through banking outlets did stem some of the losses.

Life insurance lapses during the year were $130 million while the group insurance figure was $46 million. 

CommInsure’s general insurance business saw premium growth of 7%, with fewer claims despite the severe weather conditions in Australia during the past financial year.

The general insurance premium increase was attributed to volume growth.

Lapses for general insurance were $72 million while new business was worth $100 million for the 2011 financial year.

In New Zealand, annual premiums were up 5% to $NZ584 million ($467 million) compared to $NZ554 million ($443 million) in the 2010 financial year.

Lapse rates for this financial year were $NZ55 million ($44 million) – down 7% – while new business bought in $NZ87 million ($69.6 million), down 10% on the previous year.