TAL has reported a 62% rise in ordinary profit to $122 million for the six months to September 30.

Ordinary revenue for the Australian business of Dai-ichi Holdings was up 13% to $1.8 billion, and premium income was up 15% to $1.6 billion.

Claims grew 21% to $1.1 billion.

The growth area for annual premium new business at TAL was individual insurance, up $73 million.

Group life annual premium new business added only $5 million in the six months, but group life inforce premium was $1.5 billion for the half-year.

This compares with $1 billion of inforce premium for individual cover in the period. 

Net income for the six months to September 30 was up 40% to $78 million.

Dai-ichi says winning new group life contracts has contributed to an increase in premium and other income.

“While TAL observed higher claims in its retail business, accounting benefit due to lower interest rates contributed to an increase of 40% in net income.”

Dai-ichi forecasts TAL’s ordinary revenue for this financial year will be $3.9 billion, up 668%. Net income is expected to be flat at $120 million.

The Australian life insurer is on course to make a $180 million ordinary profit at March 31, up 27% on the previous year.