Life insurance company TAL Ltd (formerly known as TOWER Australia) delivered a solid performance over the year to 31 March 2012.

In statements released by TAL’s ultimate Japanese parent, Dai-ichi Life, the Australian business reported net profit after tax increased 25 per cent to $93 million for the year ending 31 March 2012 compared to the previous year.

Removing the effect of non-cash items such as amortisation and changes in discounts rates, TAL’s preferred measure of underlying profit rose by 18 per cent to $109 million.

TAL’s annual inforce premiums rose by 15 per cent to $1,393 million. TAL’s embedded value grew by 22 per cent to $1,596 million. Individual risk sales grew by 25% over the period leading to a 27% increase in the value of new business to $204 million.

TAL Managing Director Jim Minto said: “TAL has been able to deliver very good results in what has been a difficult business environment.

“This strong growth in business reflects that TAL continues to work well with its business partners in delivering valuable life protection solutions to Australians. TAL continues to develop and innovate, enhancing its product offerings and developing channels to help provide a greater level of access to life insurance, income protection, critical illness and temporary and permanent disability cover in Australia.”

Transforming its business to meet emerging customer and stakeholder needs has been behind TAL’s growth in recent times. The drive towards simplification continues and is producing good benefits for all stakeholders.

“We are focussing a lot of energy on consumer, social and industry changes,” Mr Minto said. “Life insurance delivers a very valuable social purpose and customers are increasingly mobile and savvy, wanting simplicity, transparency and speed. Our goal is to meet and exceed to these challenges.

“The strength of TAL has always been its people and valuable business partnerships. We are very proud of that.”

7 June 2012