AMP’s life insurance business has reported a 1.6% decline in operating earnings to $185 million for last calendar year.

The life business has also recorded a 2% fall in investment income to $49 million.

These drops resulted in a 1.7% fall in after-tax profit to $234 million for the year.

Individual life annual premium grew 1.1% to $1.5 billion in the year, while group life annual premium was also up 1.1% to $443 million.

AMP attributes the rise in premium to CPI increases and ageing policyholders.

Cash outflows for the life insurance business fell 1.7% to $880 million.

AMP CEO Craig Meller says claims experience last year reflected the continued rollout of a new claims approach, reversion to long-term assumptions and volatility in the second half.

Lapse rates in individual life fell to 13.7% last year from 14.4% in 2014.

To improve claims management and lapse rates, AMP has introduced a new claims platform for income protection, which will be expanded to individual and group cover this year.

AMP says it will continue its business recovery program to drive long-term sustainability for the life operation. It also wants to increase product sales through the AMP adviser network and corporate super channels.

It forecasts subdued annual premium growth in life this year.