Suncorp Life has reported net income of $125 million for the year to June 30, as the division demonstrates its ability to provide stable support for the wider group.

The figure is up 36% on the previous year thanks to improved claims and reduced lapse rates and expenses, while annual inforce premium increased 6.5% to $970 million.

Group net profit was $1.13 billion, up 55.2% despite natural hazard losses of $1.07 billion.

Outgoing MD and Group CEO Patrick Snowball believes the bank and life divisions are starting to deliver a stable earnings base to support the “general insurance engine”, and there is plenty of opportunity for growth.

“Our focus on value over volume is delivering,” he said.

Mr Snowball welcomes recently announced regulatory reforms, saying he is “delighted the Government has heard our calls for change”.

Key life insurance objectives include achieving a leadership position in the direct business and focusing on the sustainability of advised business. “Suncorp Life has a unique opportunity to capitalise on the potential of the direct channel because it is the only life insurer that is part of a large-scale insurance business.”

Suncorp Life CEO Geoff Summerhayes leaves on September 30, to be replaced by Vero New Zealand CEO Gary Dransfield on an interim basis.

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