The results are in for Asteron Life

The company, which is part of ASX-listed Suncorp, says its annual profit after tax of $6 million was down 79.3% compared to the previous year.

It blames the fall on significantly lower investment returns and higher claims experience compared with the prior period.

"Growth in planned profit margins and favourable lapse experience was offset by significant adverse market adjustment impacts from interest rate movements, net adverse claims experience compared to the net positive experience in the pcp, and increased IFRS17 implementation costs," the company said.

“Investment returns have had a major impact on the life insurance business in the last few months, largely driven by rising interest rates,” Suncorp chief executive Jimmy Higgins says. “But the business remains very stable with good profitability and retention.”

Asteron Life's in-force annual premium sits at $295 million with the bulk of that, $231 million, coming from the adviser channel. However, the adviser channel only grew 1.3% in the past financial year. Direct, which presumably includes AA Life, was flat and "group and other" was up 25%.