The results, released by TAL’s ultimate Japanese parent, Dai-ichi Life, show that TAL’s revenue on a Japanese GAAP reported basis rose 9% to $1.195 billion for the six months to 31 September 2012 compared to the same period the year before. 

The business’s net profit after tax increased 8% to $68 million for the period compared to the 2011 half year result. 

Removing the effect of non-cash items such as amortisation and changes in discount rates, TAL’s preferred measure of financial performance, underlying profit, rose by 26% to $70 million over the same period. 

This unaudited underlying profit removes items that do not impact operational performance to present the underlying insurance result after deducting corporate costs and is reconciled to the auditor reviewed net profit after tax. 

Since March 2012 TAL’s embedded value grew by 12 per cent to $1.792 billion, while inforce premiums increased from $1.39 billion to $1.52 billion. 

New business premiums grew from $123 million in first half 2011 to $196 million this period, with individual risk sales growing from $96 million to $109 million and group sales rising from $26 million to $86 million. 

TAL Managing Director Jim Minto said: “The underlying profit and growth figures are impressive given the continuing tough business climate. 

“TAL continues to implement its strategy of developing a multi-channel distribution model to ensure we meet constantly changing customer and partner needs. 

“In this period we have seen the market impacts of higher claims and lapses as reported by most other life insurers. We have been able to manage these effects reasonably well although we will continue to be very vigilant.” 

Mr Minto said the results reflect the fact that TAL employees really are passionate about life insurance and the benefits it delivers to Australians. We want to help solve Australia’s massive underinsurance problem. 

“We have exciting plans for our business to ensure we maintain our growth and make life insurance more valued than ever before by consumers around the country. We want to give our customers peace of mind they are covered for when they most need it in life,” Mr Minto said. 

“Our ownership by Dai-ichi Life, a top 10 global life insurance business, brings many benefits to the Australian business: it deepens our knowledge and experience and enhances our growth prospects.

“Strong links to such a successful company provides TAL’s business partners and customers with further confidence in our ability to continue to move forward.”

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