The Australian Prudential Regulation Authority (APRA) today released the first edition of its Half Yearly General Insurance Bulletin, which shows a pronounced turnaround in profitability and capital strength for the industry over the past five years. The new publication, which includes detailed information at both an individual insurer and aggregate industry level, was developed following extensive consultation with industry and other interested parties.

Over the five-year period to 30 June 2005, total assets reported by the general insurance industry rose from $59.9 billion to $77.8 billion, while net premium revenue rose from $14.3 billion to $20.5 billion.* Net incurred claims were steady over this period.

Over the same five-year period, the net loss ratio for the industry fell from 92 per cent to 62 per cent, and the return on equity rose from -7.1 per cent to 21.1 per cent.

APRA Member Mr Steve Somogyi said that solid underwriting results coincided with well-performing investment markets to deliver improved profitability for the industry.

"A number of factors contributed to the solid performance for the year ended June 2005 including premium inflows, low claims intensity and low frequency of claims in most lines of business."

APRA's previous publication, Selected Statistics of the General Insurance Industry, last published in 2002, preceded the introduction of the new prudential regime for general insurers and new reporting requirements in 2002. These requirements enable the collection of additional and more relevant information.

"The new publication will assist market participants in making competitive decisions, while assisting policyholders to better assess an individual institution's performance and financial standing," Mr Somogyi said.

The first edition of the Half Yearly General Insurance Bulletin is compiled from data lodged by APRA-regulated general insurance companies on audited annual returns for financial years ending between 1 July 2004 and 30 June 2005. It also includes summary data from June 1999 to June 2005. Copies are available on APRA's website at: http://www.apra.gov.au/Statistics/GI-Half-Yearly-Statistics.cfm

*Note
Please note that the five-year comparisons quoted above are illustrative only, due to different measurement bases.

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