AMP’s wealth protection division has reported stronger third-quarter results, but analysts say further improvement is needed.

In the three months to September 30 annual inforce life premium was up 6.2% to $1.9 billion.

Inforce premium for group life grew 16.6% to $429 million, driven by rate rises.

CEO Craig Meller says the results meet expectations.

“Our current range of products is performing well and the performance of our insurance business is in line with guidance,” he said.

Third-quarter lapse rates match best estimates, while claims are ahead of assumptions.

“The best-estimate assumptions outlined at AMP’s financial year 2013 results announcement remain unchanged,” Mr Meller said.

Morningstar Head of Banks and Insurance David Ellis says AMP’s life insurance premium growth will be in single digits only.

“The main risks to AMP’s earnings are unfavourable regulatory and government policy changes, an increase in risk insurance lapse rates and claims costs,” he said.

“The troubled wealth protection business continues to stabilise after a tough 2013, with high claims costs and lapse rates.

“The recovery strategy is delivering encouraging results but there is more work to do.”