AMP’s life business has turned a corner, with underlying after-tax profit up 114% last year to $238 million.

CEO Craig Meller says the gains are due to improved lapse rates and claims management.   

“The wealth protection business improvement plan is delivering results and our focus is now on ensuring the changes are sustained with continued improvements to processes, products and culture.”

Life insurance premium revenue was $2.2 billion, up from $2.1 billion in 2013.

Claims totalled $2 billion, up from $1.9 billion.

Individual life annual premium gained 3.5% to $1.49 billion, while group life annual premium income increased 19.7% to $438 million.

However, AMP warns short-term profit growth in the life division will be subdued, as the insurer strives for “value over volume”.