Australia’s largest life insurer, AMP, has suffered a fall in full year profit on the back of higher claims and the loss of customers.

Net profit fell two per cent to $672 million for the year to December 31, compared with $689 million for 2012.

Underlying profit fell 11 per cent to $849 million from $950 million.

The profit result had benefited from strong growth in several divisions including wealth management, AMP Bank, Mature and New Zealand, offset by the challenging life insurance environment and a decline in investment income on shareholder funds, the company said.

The final dividend of 11.5 cents per share, 70 per cent franked, is the same as the previous year.