AMP life sales sluggish in Q4

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AMP's life insurance business grew very sluggishly during the December quarter, despite it being the second largest player in the top three product categories.

Monday, March 21st 2011, 9:35AM 1 Comment

by Jenny Ruth

The largest player, Sovereign, held its own, while other companies, including Fidelity, Onepath and AIA grew particularly strongly in some product categories.

In force term term premiums, which account for 47% of the total industry, grew by $3.7 million to $236 million at Sovereign with its new business at $5.1 million for the three months ended December.

The much smaller Fidelity grew its in force term premiums almost as much by $3.7 million to $49.9 million as it attracted new business of nearly $2 million

By contrast, AMP, saw in force premiums grow just $0.9 million to $102.1 million as its new business was $0.9 million.

Half AMP's size, AIA's in force term policies grew three times as much, by $2.9 million to $52.7 million, in the three months while Onepath's grew by $2.5 million to $73.8 million.

Income replacement policies in force at Sovereign grew just over $1 million to $78.9 million as its new business was $1.7 million.

AMP's income replacement in force business grew $0.8 million to $25.8 million with new business at just $0.3 million.

Much faster growers in the category were Onepath, up $1.5 million to $25.1 million with new business of $2.1 million and Asteron, up $1.2 million to $24.8 million with new business at $0.9 million.

Apart from AXA, whose figures were distorted by reclassifications, Sovereign showed greatest growth in in force trauma policies, up $2.8 million to $82.7 million with new business at $3 million.

Onepath also grew strongly by $1.5 million to $21.8 million with new business of $2 million. AMP's growth in this product category was also sluggish at $0.7 million to $25.2 million and its new business just $0.3 million.

In the fourth largest product category, traditional whole life and endowment, in which AMP is the dominant player, most companies lost ground with little new business sold. AMP's in force policies fell $0.3 million to $52.1 million, AXA's fell $0.4 million to $32.7 million , Sovereign's fell $0.4 million to $18.1 million and Tower's fell $0.3 million to $11.4 million.

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