NAB Wealth says inforce insurance premium grew 3.7% to $1.6 billion in the year to September 30.

New business premium was $380.9 million, up 21% from $314 million the previous year.

In the retail market the business recorded inforce premium of $1.2 billion and new sales of $26.8 million. Group life inforce premium was $311 million, with sales of $61 million.

NAB Wealth increased its insurance reserves by $57 million in the year, based on actuarial assumptions amid an increasing number of claims. This pushed cash earnings down 82.2% to $30 million.

The bank says 47% of sales came through its own distribution channels and 23% through aligned advisers. The remaining 30% were from independent financial advisers.

“Results for NAB Wealth were mixed, with insurance industry conditions still challenging,” Group CEO Cameron Clyne said.