Mike Kane Strong Quotations

Through 2005, the rise in lapses was offset by strong growth in new business premiums. It appears that some of the gains in new business premiums were offset by a tandem rise in lapse rates. The life industry collectively needs to manage the lapse rate downwards.

This is a key determinant of the health of the life industry, and with strong rises in this key measure, the underlying business is not in bad shape.

Undoubtedly, life insurance confidence is also being fed by the strong equity markets that we have witnessed in this country over the last three years. This has continued uninterrupted in the first quarter of 2006, and as a result, insurance company's earnings have been boosted.

Business conditions for the life offices provide some grounds for optimism. We notice that in the recent reporting period, all life offices reported moderate to strong gains in their embedded values. This is a key determinant of the health of the life industry, and with strong rises in this key measure, the underlying business is not in bad shape.