ANZ-owned OnePath’s after-tax profit dropped 4% to $311 million for the year ending September 30.

This compared to an after-tax profit of $325 million for the 2010 financial year. 

ANZ CEO Australia Phil Chronican says income from insurance operations reflects continued growth across all retail segments, but general insurance claims were higher due to the catastrophic weather events last summer.

Net insurance income for the 2011 financial year was $352 million, down 5%, compared to $369 million last year.

Annual inforce premiums for individual life insurance during the 2011 financial year were up 15% to $749 million compared to $653 million in the 12 months ending September 30 2010.

Mr Chronican says the average life insurance premium is now $2260, up 70%.

Group inforce premiums rose 11% during the year to $502 million. In the 2010 financial year they were $462 million.

General insurance inforce premiums were up 5% year-on-year to $311 million compared to $295 million in 2010.

Lapses in general insurance premiums for 2011 were put at $697 million, but new business in the 12 months was $85 million.

Individual life insurance lapses were $67 million compared to new business inflows of $163 million.

In the group market, again new business inflows of $66 million eclipsed lapses of $16 million.

After-tax profit for ANZ’s wealth division, which includes OnePath, was down 16% for the year.

The after-tax profit was $345 million compared to $412 million in the 2010 financial year.

Future directions for ANZ Wealth include greater penetration of life insurance into the bank’s customer base.

Life insurance was launched on anz.com during the 2011 financial year and this bought in $3.4 million of premiums.