AMP’s life insurance business saw earnings fall 12% to $73 million for the six months ending June 30.

However, the profit margin for the life insurance division was up 9% to $76 million, due to the increased demand for risk protection products as people face uncertain economic futures.

Individual risk premium inflows were up 9% to $616 million, which AMP says is due to stronger distribution through independent financial advisers. Sales through advisers grew by 17% for the six months.

The individual lapse rate on policies was almost static at 10.4%, a marginal increase of 0.3% on the same period last year.

Return on equity for the wealth protection division also fell significantly, down 7% to 24.7%. AMP says the lower operating earnings and an increase in capital used to grow the business was the reason behind the fall.

AMP’s overall underlying profit for the half year was $383 million, up 4.4% on the same period last year.