Disability income insurance (DII) new business reached $404 million in the 12 months to June 30, up 1.5% from a year earlier, research house Dexx&r says in a new report.

Of the top five DII providers, MLC, TAL and OnePath managed to grow their new business during the period, the report says.

MLC grew its DII new business 36.4% to $97 million, TAL recorded a 10.4% rise to $68 million and OnePath improved 2.78% to $36 million.

In the June quarter overall DII new business increased 3.4% to $99 million from the preceding quarter but declined 4.8% from a year earlier.

Disability business in-force annual premium grew 5.18% to $3.07 billion during the year to June 30.

Market leader TAL recorded a 6.11% rise to $455.75 million while MLC, which ranks second, grew its in-force premium 7.29% to $454.14 million.

The Dexx&r report also provided an update on the rest of the life industry.

In-force annual premiums comprising of lump sum, disability and group risk businesses grew 3.3% to $16.9 billion during the year but new premium slumped 23.5% to $1.76 billion.

TAL/Asteron is the largest life insurance provider with $4.84 billion in in-force risk annual premium, giving it 28.4% of the market.

AIA/CommInsure ranks second with $3.24 billion in in-force annual premium and 19.2% share of the market, followed by Zurich/One Path, at $2.37 billion and a 14% market share.

Dexx&r says in-force annual premiums for group business – which is dominated by premium received for the provision of default cover for super funds – rose 4.8% to $7 billion during the 12-month period.

“While the Protecting Your Super measures have meant that fewer members have default cover, total premium received has continued increase as the result of re-pricing of existing benefits,” the research house says.