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Turmoil hits NMA profit

The turmoil in financial markets has halved profit growth at life insurer National Mutual Asia (NMA) to 10 per cent for the year to September compared with 20 per cent last year, the company says.

The listed insurer - controlled by Australia's National Mutual which is itself owned by France's Axa-UAP - reported profit after tax of $1.12 billion for the year to September 30 compared with $1.01 billion last year.

Earnings per share rose 10 per cent to 51.6 cents and a final dividend of 17.9 cents was declared, taking the pay-out for the year to 25.7 cents.

Chief executive Terry Smith said NMA's profits would have grown by up to 23 per cent if the company's year-end had been July instead of September.

'Regional currency turmoil in September had a big impact on the property and the equity markets, reducing profit growth to 10 per cent in September,' he said.

The insurer has 70 per cent of its assets invested in bonds and cash, 20 per cent in equities and 10 per cent in property.

Mr Smith said NMA would continue to invest in the Asian region - especially in Hong Kong and Taiwan - due to their strong fundamentals and relatively attractive valuations.

The group has 80 per cent of its equity investments in Asia's stock markets, with 40 per cent in the Hong Kong market and 11 per cent in Taiwan.

Mr Smith said new life business and its sales force both rose 16 per cent last year, giving it 2,940 sales agents.

Premium revenue rose 13 per cent to $5.2 billion while assets under management grew by 23 per cent to $19.5 billion.

He said sales in August rose 30.5 per cent compared with last year.

NMA's general insurance premium for the year dropped 7 per cent and the group life business fell 11 per cent due to competition.

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