The Australian Prudential Regulation Authority (APRA) today issued the Quarterly General Insurance Performance publication, which shows total assets for the general insurance industry as at 31 March 2006 were $83.5 billion, an increase of $5.1 billion or 6.5 per cent on the previous year.

Net assets have increased by $1.7 billion to $25.1 billion, up 7.4 per cent on the previous year.

Net premium revenue for the year ended 31 March 2006 was $21.1 billion, an increase of 0.8 per cent on the previous year.

Total industry net profit after tax for the year ended 31 March 2006 was $5.2 billion, up 1.6 per cent on the previous year. For the same period, the net loss ratio for the industry was 62 per cent, up from 59 per cent on the previous year.

Net incurred claims for the year ended 31 March 2006 were $13.1 billion, up 5.8 per cent on the previous year, while claims for the quarter were up by 11.7 per cent on the March 2005 quarter. Industry reports indicate that about 30,000 claims, representing around $425 million, were made following Cyclone Larry.

Industry net premium for the quarter ended March 2006 was 2.8 per cent lower than the corresponding quarter in 2005.

Copies of the Quarterly General Insurance Performance publication are available on APRA's website at: http://www.apra.gov.au/Statistics/Quarterly-General-Insurance-Statistics.cfm

Background

Under prospective accounting, insurers are required to recognise premium revenue and expenses when contracts are bound. Insurers that did not report on a prospective basis in the December 2005 quarter rectified their reporting methods in March 2006. These adjustments have influenced the data.

The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry. APRA is funded largely by the industries that it supervises. It was established on 1 July 1998. APRA currently supervises institutions holding approximately $2.2 trillion in assets for 20 million Australian depositors, policyholders and superannuation fund members.

Media and industry inquiries only:
Stuart Snell, Head of Public Affairs
Australian Prudential Regulation Authority
Telephone: 02 9210 3384
Mobile: 0407 250 276

All other inquiries:
APRA Contact Centre
1300 131 060