Dai-ichi Life has reported a 10.4% drop in premium to ¥1.6 trillion ($21 billion) for the three months to June 30.

However, this was partly offset by a fall in claims and benefits to ¥892 billion ($11.5 billion) from ¥1 trillion ($12 billion) in the corresponding period last year.

New policy sales jumped 114% to ¥34.7 billion ($440 million) in the three months.

Total inforce premium at June 30 was ¥3.39 trillion ($42 billion), down 1.6%. Investment income was also down, to ¥382 billion ($4.9 billion) from ¥444 billion ($5.7 billion).

As a result, ordinary profit for the three months to June 30 was down 35% to ¥117 billion ($1.5 billion).

The Japanese life insurer’s President, Koichiro Watanabe, says the drop in income is due to policy reserving adjustments at the Frontier Life subsidiary.

“Contribution from the overseas life insurance business [including TAL in Australia] had an anchoring effect on the group results,” he said.

“While the financial markets remain unpredictable and the group needs to observe how they evolve, the group will take additional measures to stabilise earnings of Frontier Life.”