Lump sum life insurance new business sales have bounced back after falling for two quarters, according to the latest figures from research house Dexx&r.

In the three months to June 30 sales grew 13% to $308 million when compared with the March quarter.

However, on a year-on year basis, sales were down 4%.

This was offset by a continuing decline in the lump sum lapse rate, down to 14%. Lapses peaked in June 2013 at 15.8%.

Dexx&r says AMP, MLC, TAL, AIA Australia and ClearView all recorded increases in lump sum new business for the year to June 30.

Income protection new business sales also enjoyed a strong June quarter, rising 17% to $134 million compared with the March quarter.

Lapses in income protection continued to decline, down to 13.8% in the June quarter from 14.4% in the corresponding period last year.

Dexx&r says the drop shows insurers have improved their retention strategies.

ClearView led the income protection new business surge, with a 64% rise to $15 million.

AIA Australia was up 20% to $28 million, MLC grew 14% to $89 million and Westpac gained 14% to $64 million.

Group life enjoyed a strong year to June 30, with inforce business up 12% on the previous year to $6.1 billion.

Dexx&r says TAL, AIA Australia, CommInsure and MLC all recorded higher inforce group premium in the year.