Suncorp New Zealand’s life business suffered a 12.5% decline in half-year net profit to $NZ14 million ($13.1 million), the business announced today.

Discount rate impacts and a modest net unfavourable experience movement offset an increase in planned profits.

However, inforce premium rose 7.1% to $NZ330 million ($310 million), supported by new business, inflation and age-related premium growth, and strong retention.

By sales channel, advised in-force premium increased 6.2% to $NZ256 million ($240 million), direct grew 6.7% to $NZ48 million ($45 million), and group and other rose 18.2% to $NZ26 million ($24 million).

Suncorp says new business of $NZ13 million ($12.2 million) represented a $NZ1 million ($941,000) rise from a year earlier, driven by strong adviser engagement, with growth in all channels.