Naomi Ballantyne
by Susan Edmunds
Naomi Ballantyne
The insurer has released results for the 2016 year, which show total comprehensive income dropped from $18.45 million in 2015, to $11.05 million.
Managing director Naomi Ballantyne said the growth rate of the company’s first years had been quicker and the company knew it would slow down. This year's result was in line with those expectations, she said.
Its underlying insurance profit grew by almost a quarter to $12.6 million in the year. Partners Life paid out $57.9 million in claims for the year, up from $44.4 million in 2015. Reinsurance covered $30.6 million of that.
Net premium revenue, after reinsurance expenses, was $55.3 million, up from $40.4 million in 2015. Its net claims expense increase from $20.82 million to $27.3 million but expenses, largely driven by commission and operating expenses, jumped from $94.25 million to $108.31 million.
It paid $57 million in upfront commissions to win $38 million of new business in the year.
Ballantyne said the significant amount of upfront commission payment was because advisers were the insurer’s only distribution channel and it was all new business. “It’s not balanced by years of renewal commissions on an in-force book yet,” she said.
The level of upfront commissions dropped from $61.9 million in 2015 and trail commissions increased to $13.4 million from $9.2 million.
Ballantyne said she was pleased with the result for the 2016 year.
Partners has signed deal for a $200 million investment from Blackstone Tactical Opportunities. The financial statements note the investment should happen over the next two years, subject to shareholder and regulatory approvals, and relevant commercial decisions.
“The directors are confident all requirements for the investment to proceed will be met.”
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