AMP has reported increased cashflows for its life insurance business with revenues up by $18 million to $120 million during the quarter ending September 30.

This was also helped by cash outflows decreasing by $4 million due to claims reserves rising at a higher than expected rate, the company says.

In New Zealand, general insurance claims from the Christchurch earthquake, valued at $3 million, impacted the division’s profitability.

It saw cashflows fall by $6 million to $90 million as the impact of taxation increases on life insurance products starts to bite.

AMP reported consumers are reducing their levels of cover on life insurance to minimise price rises to cover the increased taxes. It also reported lapse rates for policies have increased.