Asteron Life reports a strong profit

8 February 2023

Asteron Life has today reported a strong Profit After Tax (PAT) of $16 million for the half year to 31 December 2022, up $10 million on the pcp. 

Asteron Life is the life insurance arm of Suncorp New Zealand, a leading insurance provider. 

Asteron Life Executive General Manager, Grant Willis says "The business has delivered a great result, however our immediate focus is on supporting our customers who have been impacted by the North Island flood event.” 

We are working closely with advisers and customers to make sure they are fully aware of all available options to ensure they can manage costs at this time without impacting their cover including premium relief. 

“One such option is activating Asteron Life’s built-in premium relief benefit which is available to eligible personal and business customers. This benefit includes a premium holiday for lump sum cover and premium and cover suspension for disability income. Both can ease financial pressures through tough times and customers are urged to speak to their advisers for more information.” 

Willis says Asteron Life’s customer facing teams are poised to provide support, as customers face financial strain from the flooding. 

“For customers who may be experiencing vulnerability, talking about finances, and particularly asking for help, can be uncomfortable, but the potential benefits of these conversations can be huge” says Willis. 

“We’ve trained our customer facing teams to look for clues when affordability can be an issue, and to ensure all options and the assistance available to them via advisers is explained.”

More about the results...

Key drivers of Asteron Life’s result include growth in premiums and favourable experience, while market adjustments from interest rate movements improved on the pcp. The underlying profit (UPAT) result excluding market adjustments was $21m, up $8m on the pcp.

Willis says the business has seen growth across all channels and new business of $12 million is up $2 million on the pcp.” 

Market adjustments were impacted by the interest rate environment, with increasing interest rates giving rise to adverse investment income returns through mark-to-market revaluations.

Retention figures continued to be above market levels, which Willis says attests to the value of the products and service that the business is providing to customers.

Asteron Life’s claims acceptance rates were at 97% in 2022 across Asteron adviser and direct channels. Willis says, “Giving customers certainty at claims time is a key priority for the team, and the high payout ratio delivers on our purpose of being there for customers when they need us the most.

Asteron Life has worked closely to support advisers through the period in regard to impending legislation changes, and increased internal training to assist customers experiencing financial hardship.

Willis says Asteron Life’s continued support from advisers has played a significant role in the strong growth and business performance and acknowledged the efforts of the whole Asteron team in achieving the results to date.

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