“A significant contributor to this result was the improvements to the pricing of the inforce book in New Zealand,” says Promina in its notes to investors.

“The positive experience deviations of $7m resulted from better than forecast persistency rates, mortality and morbidity experience and expense control across both Australia and New Zealand.”

Much of this was in the second quarter after a so-so first three months.

“Over the last 18 months Asteron in New Zealand has established strong discipline around pricing and underwriting… however a key impact is that life risk sales in New Zealand were slightly down against the first half of 2004.

“A recovery in the second quarter was led by a series of activities aimed at re-engaging intermediaries, supported by a number of product improvements. Continued focus on relationships is expected to maintain this recovery in the second half of this year.”

The insurance part of Promina’s business has been subject to keen scrutiny by analysts as some were expecting a much better overall result.

There has been a clear division amongst analyst’s with some saying the profit, although up on the same period last year, means a lot of the new business will be unprofitable, while others saying the subsequent fall in share price is an overreaction and represents a buying opportunity.