ANZ subsidiary OnePath says inforce premium fell 4% to $2 billion in the six months to March 31.

The drop is attributed to it ending sales of new home and contents, travel and motor cover, and disposal of the New Zealand health insurance business.

The insurer also suffered a slight rise in lapse rates, to 13% in the six months from 12.6% in the previous corresponding period. Insurance income for the half was $493 million, up 5%.

Individual annual inforce premium was up 4% to $1.29 billion.

New individual business totalled $108 million, with $95 million of lapses in the half.

Group life annual inforce premium grew 13% to $439 million.

OnePath won $31 million in new mandates for group life business in the six months, but lost $15 million of policies.

The insurance business’ cash profit gained 5% to $151 million.

ANZ Wealth MD Alexis George says the OnePath insurance business is growing, despite challenges in the life industry.

“Our presence is strong across all areas of direct, group and retail insurance, with an ongoing focus on the product mix. Insurance operating income grew by 8%, reflecting favourable direct and group lapse experiences partially offset by adverse claims experience.”