Fidelity Life has reported a record after-tax profit of $NZ18.3 million ($14.5 million) for the year ending June 30.

Gross insurance revenue increased 7% to $NZ86.7 million ($68.8 million) with record net new business premiums of $NZ14.6 million ($11.5 million) for the 12 months ending June 30. These were up 6% on the previous year.

Fidelity Chairman Ian Braddock says a number of challenges during the past financial year impacted on the life insurance sector.

“The tragic events in Christchurch have given us all a different perspective on life and what we consider important,” he said.

“Within the life insurance sector, the last year has seen a number of significant changes, including financial adviser and company regulation, a new tax regime and increased competition.”

Mr Braddock says despite all of these challenges, Fidelity still managed to deliver a strong set of figures for the year.

Investment income from its insurance business was $NZ36.8 million ($28.9 million), slightly up on 2010.

Mr Braddock admits the rest of the 2012 financial year will be challenging, but expects the insurer to deliver another set of strong figures for the year.