AMP Wealth Protection has recorded a $91 million profit for the six months to June 30, up from $64 million in the corresponding period last year.

Life insurance premium revenue for the half was $1.1 billion, rising from $1 billion, while claims and related expenses for life contracts totalled $996 million, up from $965 million.

Its group life business lost $13 million, compared with a $31 million loss in the corresponding period last year. The lump sum operation lost $7 million, compared with $3 million.

However, AMP’s income protection operation increased profitability to $11 million from $9 million.

Lapses were positive in revenue terms, turning around to record an $8 million positive result in the half, compared with a $21 million loss.

AMP CEO Craig Meller says the wealth protection arm has stabilised, but he concedes there is more work to do.

“The life insurance sector continues to face both structural and cyclical change and a range of initiatives are under way to address these factors,” he said. “These include improved customer retention campaigns and additional resources, to handle customer claims more effectively and help income protection customers get back to work more quickly.”

He says the insurance business remains a key area of focus.

“We will introduce a series of actions to improve the management of claims and customer retention, to deliver benefits to both our customers and shareholders.”

Financial adviser fees grew to $351 million in the half, up from $278 million in the corresponding period last year.

Commissions and fee-for-service revenue for advisers totalled $584 million, compared with $512 million. AMP now has 3860 advisers, up 2%.