Commonwealth Bank’s insurance income rose slightly in the six months to December 31, but it also saw a jump in life claims.

The wealth management division’s income rose 10% to $334 million, with CBA CEO Ian Narev saying this was due to a recovery in markets-based businesses.

Insurance income rose 1% to $505 million from the 2011 December half. The figure comprised $368 million from CommInsure, up 1%; $113 million from New Zealand operations, down 3%; and $37 million from Asia, up 9% on strong sales of new business.

CommInsure’s after-tax profit for the half fell 3% to $170 million.

The bank reported strong new business sales in life and says there were fewer claims from general insurance, which were impacted by natural disaster claims in 2011.

Average inforce premiums grew 16% to $2.5 billion, but claims and policyholder liabilities rose 35% to $811 million.

CBA reported a “mixed” claims experience in income protection products.

Lapse rates increased “which is a trend that is consistent with the current industry experience” and life revenue fell due to increased claims.

Retail life income increased 1% on sales through the bank’s branches.