New life insurance business annual premiums were down 3.34% for the year ending December 31, according to research house Dexx&r.

Total premiums for the year were $1.97 billion compared to $2.03 billion in December 2009.

Tower dominated the new business inflows, up 30.51% to $423 million. It also increased market share to 21.52% compared to 15.94% in December 2009.

MLC, CommInsure and AMP all reported declines in new business premium inflows for the 12 months ending December 2010.

Total inforce annual premiums were up 9.2% for the year to $8.8 billion.

Again Tower led the inflows, up 31.49% for the year recording $1.1 billion of inforce premiums.

AIA recorded inflows of $821 million, up 17.4% while OnePath’s premium income was up 10.41% to $1.1 billion.

MLC, excluding Aviva, has maintained its market share of 16% for inforce annual premiums.

Tower also grew its market share in the 12 months to 13.49%, up from 11.2% in December 2009, while CommInsure saw its share drop from 13.8% in 2009 to 13.1%.

The biggest fall in new premiums was for group life insurance, down 13.43% in December 2010 to $611 million.

Dexx&r says Tower was the big winner in new group business premium growth, reporting a 59.6% increase in the year to December 31,while AIA reported a 59% decline in new premiums.

Tower also reported strong growth of its inforce annual premiums for group life, up 62.96% to $589 million. AIA fared better with group annual premium growth of 16.6% to $605 million.

AIA still is market leader for annual premium inflows with a 21.3% market share closely followed by Tower with 20.73%.