AMP has reported modest life sales growth for the third quarter, but has suffered a blowout in income protection claims.

Annual inforce premium was up 3% to $1.97 billion in the three months, driven by a 4.5% increase in the lump sum sector.

CEO Craig Meller says the life insurance result was hit by claims from the retail income protection book.

“This negative experience has not given rise to any revised best-estimate claims assumptions for the retail income protection book,” he said. “Claims experience outcomes for lump sum and group risk insurance were in line with best-estimate assumptions.”

AMP says lapses were also in line with best-estimate assumptions.

“Volatility in wealth protection experience is to be expected from period to period, given the size of AMP’s inforce book in Australia,” Mr Meller said.

“Further, as remediation of the Australian wealth protection business progresses, there continues to be potential for increased experience volatility.”

He says work to improve the life business’ sustainability continues, with a revised claims philosophy and claims management platform.