As at 31 December 2007 there were 32 life insurance companies operating in Australia. They managed $254.9 billion in assets (backing both Australian and overseas policyholders) and received $51.6 billion in premium income (that is, regular in force premiums at the end of the year plus new single premium business) for the year ended 31 December 2007.

Superannuation business made up 90 per cent of life insurance office assets (backing Australian policyholder liabilities) and also accounted for 90 per cent of premiums. Ordinary business of life insurance companies accounted for the remainder of premiums. Around 19 per cent of all superannuation assets are held in life insurance policies.

Of the two broad types of life insurance products, regular (or annual) premium and single premium, single premium business now accounts for 85 per cent of life insurance premiums, of which 98 per cent relates to superannuation business.

The top three life insurance groups accounted for 66 per cent of total industry assets backing Australian policyholder liabilities.  They also accounted for 78 per cent of new business premiums and 72 per cent of total premiums received.  In the same context, the top ten life insurance groups represented 95 per cent of total assets backing Australian policyholders, 97 per cent of new premiums and 95 per cent of total premiums.

Foreign owned life insurance companies accounted for 26 per cent of total life office assets backing Australian policyholder liabilities.  The foreign owned companies also accounted for 24 per cent of new business premiums relating to Australian policyholders and 27 per cent of total Australian business premiums.  Bank owned life insurance companies accounted for 37 per cent of total assets backing Australian policyholders, 41 per cent of new business premiums and 39 per cent of total Australian business premiums.

Table 1: Life insurance premiums, year ended  31 December 2007