ANZ’s net income from insurance fell 1% to $429 million in the year to September, while the bank’s overall profit grew 6% to $5.7 billion compared with the previous year.

Insurance is now part of the newly formed Global Wealth and Private Banking Division, where results were flat, reflecting market conditions, according to CEO Mike Smith.

“But importantly… we saw an improving contribution in the second half, with better insurance results, higher investment earnings and productivity improvements.”

In Australia net insurance income fell 4% to $342 million. In New Zealand it increased 14% from a low base to $87 million.

Group and individual life insurance income rose 7% to $356 million, while general insurance grew 2% to $46 million. But a negative $61 million reserve taken against previous profit expectations pushed overall insurance income into negative territory.

Overall, funds management and insurance profits rose 1% to $424 million, with a 6% decline in Australia offset by a 66% jump to $73 million in NZ. Net funds management and insurance income was down 14% to $1.2 billion.

Total funds under management grew 6% to $51.6 billion, while inforce premium was up 4% to $1.82 billion. Of that, general accounted for $424 million, group life $431 million and individual life $967 million.

Total insurance assets fell 7.7% to $29.9 billion.

The second half was better than the first for insurance, with a favourable claims experience partially offsetting higher lapse rates, resulting in net insurance income rising 4% to $219 million.

New Australian Prudential Regulation Authority capital standards will have no material impact on ANZ, the bank says.