Weekly Life Insurance News RoundupAugust 20th, 2012 | Posted by in News
Challenger suffers 43% FY profit slide
VOLATILE investment markets have pushed Challenger’s full year profit down 43 per cent, but the financial services group is confident it can improve earnings in fiscal 2013. Chief executive Brian Benari said ongoing volatility affected Challenger’s statutory profit because life insurance accounting standards required the statutory net profit result include movements in the value of assets and liabilities.
Churning up a heated debate
There are mixed views and few facts concerning precisely how much “churn” occurs within the life/risk sector, and how many advisers might be deemed serial offenders where the “churning” of policies is concerned.
Life readies for new cap increases
Insurers are preparing for the impact of the Life and General Insurance Capital (LAGIC) reforms, increasing their capital reserves. Challenger yesterday revealed that the Australian Prudential Regulation Authority (APRA) had proposed transition arrangements to its life business, for the new capital requirements that will be required after APRA’s review.
Profits dip for insurance giants
Two of the world’s most prominent insurers have announced their latest results, with one witnessing plunging profits and the other posted profits short of projected targets. Zurich said reported its second-quarter profit declined 19% after a gain in the year-earlier period from selling a stake in New China Life Insurance. However, QBE reported more encouraging figures 13% rise in first-half net profit, but were still short of their forecast and that has hammered its share price.
ClearView push into life insurance, wealth management
Favourable insurance claims saw Clearview Wealth produce an underlying profit after tax of $19.2 million for the last financial year and a net profit after tax (NPAT) of $22.3 million. Life insurance sales increased by 540 per cent over the first half period and accelerated in the last quarter of the financial year, ClearView said.
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