Statistics released today by the Australian Prudential Regulation Authority (APRA) revealed that superannuation made up 87 per cent of all life office assets and accounts for 88 per cent of premiums as at December 2002.

The increased focus by life insurers on superannuation has resulted in non-superannuation (known as ordinary) business accounting for only 12 per cent of premiums.  Approximately 30 per cent of all superannuation assets were shown to be held in life insurance policies during the same period.

Single premium business now accounts for 78 per cent of life insurance premiums, with the vast majority being for superannuation related products.

The statistics also showed that there were 40 life insurance companies operating in Australia, managing around AUD $185 billion in assets backing both Australian and overseas liabilities as at December 2002.

Life insurance companies operating in Australia for year ended 31 December 2002 received AUD $36.7 billion in premium income, that is, regular premiums at the end of the year plus the new single premium business.

Foreign-owned life insurance companies accounted for 29 per cent of assets managed by the industry and 32 per cent of premiums received.

Bank-owned life insurance companies made up 40 per cent of assets managed by the life insurance industry and 44 per cent of all premiums.

Life Insurance premiums composition

A full copy of the reports is available at www.apra.gov.au

APRA is the prudential regulator of the financial services industry including banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry.  It currently regulates $1.5 trillion in assets for 20 million Australians.