MLC and NAB Wealth have reported a 7.7% rise in annual inforce life insurance premiums for the six months ending March 31 this year.

Premium inflows for this year’s first half were $1.4 billion, compared to $1.3 billion in the corresponding period last year.

But new business premiums suffered a 25% drop to $134.1 million for the 2011 half, compared to $180.6 million in 2010.

MLC Group Executive Steve Tucker says increasing premium inflows is part of the strategy to write high quality, sustainable business.

MLC insurance retained its number one market share position in individual risk inforce premiums and increased its market share of group risk inforce premiums,” he said.

“During the half year, the group insurance business won several key mandates in the mid-sized industry fund and large corporate segments.”

The 2011 first-half insurance profit for MLC and NAB Wealth was up 52.9% to $26 million from $17 million in the corresponding 2010 half.

Mr Tucker says claims for individual disability and lump sum were unfavourable during the period, but that was partially offset by lower claims from group business.

One of the key initiatives to increased life insurance sales is the move to lift cross-selling rates across the NAB client base.

“Driving cross-sell of wealth products across the broader NAB client base remains a key strategic priority, with 21% of insurance sales generated by NAB Financial Planning,” he said.

“During the period, NAB Financial Planning was restructured to enable its most senior and experienced financial planners to specialise their service offering for NAB Business Bank’s clients.”

MLC’s push to sell life insurance products through independent financial advisers took a setback during the past year. Only 41% of life insurance sale are currently through independent advisers, compared to 52% at March last year.

Life insurance sales through the bank’s internal distribution force were 40% this year, compared to 35% in March 2010.