Freedom Insurance Group has reported a 6% fall in net profit to $13.2 million for the year to June 30.

The direct life insurer suffered a slowdown in new business sales, which dropped 5% to $61.1 million, and a 40% blowout in expenses to $45.4 million.

MD Keith Cohen says increased expenses supported new products, marketing and lead generation, sales staff and other costs of growth.

“We will continue to invest to realise our growth aspirations, including product and channel expansion, which will bring higher costs in the near term ahead of revenue growth,” Mr Cohen said. “Nonetheless, we are optimistic on the sales outlook for the new products.”

Total inforce premium grew 14% to $124.6 million.

Freedom says it will “co-operate fully” with the Hayne royal commission, which has listed the insurer as a case study in its sixth round of hearings from next Monday.