Tough decisions taken last year are starting to pay off for Suncorp Life, which has reported an $86 million after-tax profit for the six months to December 31.

This compares with a $22 million profit in the corresponding period of 2013, which was hit by lapses, claims and a higher discount rate.

The turnaround has prompted Group CEO Patrick Snowball to declare: “The sun rises on the life insurance sector again.”

Suncorp Life CEO Geoff Summerhayes says the group is experiencing modest growth across its distribution channels while making significant changes to the business.

“In the independent financial adviser business we are shifting from volume to value, and we have shifted the mix quite substantially in the direct business and broadened out the product range in the distribution channels.”

The changes are “starting to bite”, but he says the sector is in transition and this will take a few years to play out.

Suncorp Life more than doubled its pre-tax profit to $140 million in the half-year. Life insurance claims and movement in liabilities fell to $430 million from $869 million.

Profit from life risk products grew to $34 million from $23 million, and annual inforce premium grew 8.6% to $957 million.