The Australian life insurance industry ended the 2010 financial year with good growth for net premiums and increased after-tax profits, according to the latest Australian Prudential Regulation Authority (APRA) figures.

The figures also show the life industry has bounced back from the global financial crisis that slowed growth during 2009.

APRA says new premiums for the 12 months ending June 30 were $40.1 billion, up from $38.7 billion in the corresponding 2009 period.

Net policy payments were $36.9 billion in 2010, up from $35.4 billion in 2009.

And net profits for the life industry were $2.7 billion for the year, up from $1.9 billion in 2009.

The improved profit position was despite a rise in total expenses for life insurers, up from $21 billion in 2009 to $25.1 billion in the last financial year.

With stronger financial performance from life insurers, total assets also rose slightly from $214.1 billion in 2009 to $214.4 billion in the 12 months ending June 30.

CommInsure led the net policy revenues for the 2010 financial year with inflows of $979 million, closely followed by AMP with $968 million.

Axa Australia, which will soon be merged with AMP, delivered net policy revenue of $847 million which will produce combined revenues in excess of $1.8 billion a year, well ahead of its nearest competitor CommInsure. 

Net profits after tax for the combined businesses will be almost $700 million, again well ahead of CommInsure’s $388 million that is reported in the latest APRA figures.

The report says AMP is the most profitable life insurer, with an after-tax profit of $529 million.