MLC/Resolution merger will command 19.2% market share

The soon to be completed merger of Resolution Life with MLC Life to create Acenda will result in Australia’s third largest life insurer by market share.

The latest market share analysis from specialist life/risk research house, Dexx&r reveals that if the two companies had been combined in September, last year, they would have accounted for 19.2% of the market, or $3.13 billion in in-force annual premium.

The Dexx&r data reveals that TAL would continue to dominate in terms of market share with 31.6% followed by AIA with 21% meaning that Zurich would be the smallest player with 14.9% market share.

The merger of MLC Life with Resolution Life Australasia to form Acenda was announced in early December when MLC Life’s parent company, Nippon Life Insurance, acquired 100% of Resolution Life.

The Dexx&r market share analysis came at the same time as the research house released its Life Analysis Report covering the 12 months ending September, last year, revealing that individual risk new premiums had declined by 16.3%.

The analysis also said disability Income new business decreased by 23.5% to $343 million over the year to September 2024, down from the $448 million recorded in the twelve months to September 2023.

“Disability Income new business in the September 2024 quarter of $60 million was down 21.4% from the $78 million recorded in the June 2024 quarter. September 2024 quarter sales were 52.9% lower than the $129 million recorded in the September 2023 quarter,” it said.

The Dexx&r data suggest the disability income insurance market is gradually beginning to stabilise following the regulatory intervention which occurred in 2021 with the attrition rate for increasing to 11.4% up from 10.8% in September 2023.

IDII discontinuances reached their 9% low point immediately prior to the regulatory intervention by the Australian Prudential Regulation Authority (APRA).