Individual lump sum life insurance discontinuances have fallen further, reaching an attrition rate of 14% last year, according to new data from research house Dexx&r.

The rate peaked at 16% in December 2012, it says.

In the disability income segment, the attrition rate dropped 0.5 percentage points to 14% last year. It had peaked at just below 16% in 2012 and 2013.

Dexx&r says the continued drop in both life segments, during a period of flat sales growth, shows insurers are becoming more profitable.

New lump sum annual premium last year totalled $1.28 billion, down from $1.3 billion in 2014.

New income protection annual premium increased 2% to $479 million.

Total inforce group life business grew 14% to $6 billion last year.

TAL regained market leadership in the group segment, recording a 27% increase in inforce premium to $1.7 billion following its appointment as insurer to the Cbus industry fund, according to Dexx&r.

That inflow also elevates TAL’s reinsurer for the Cbus fund, new entrant Pacific Life Re, making it a significant participant in the group life reinsurance market.