TAL has reported a $20 million ordinary profit for the quarter to June 30, down 66% on $60 million in the corresponding period last year.

Higher interest rates and the slowdown of the Australian economy affected the result, according to Dai-ichi Life Executive Officer Seiji Inagaki.

However, TAL says premiums grew 17% to $520 million in the three months.

New group business increased to $121 million from $27 million, and individual life premiums moved to $58 million from $54 million in the second quarter last year.

Group inforce premiums for the quarter were $917 million, with individual life recording $804 million.

Mr Inagaki says the improvement in group life was driven by revised policy terms, including higher premium rates.

Dai-ichi’s forecast for TAL revenue in the year to next March has risen 133% to $2.5 billion, up from $2.3 billion in March this year.

Profits are expected to fall slightly to $130 million.