The Australian Prudential Regulation Authority (APRA) today issued the Quarterly General Insurance Performance publication, which shows that net premium revenue for the total industry for the year ended 30 June 2006 was $21.5 billion, up 1.7 per cent on the twelve months to June 2005. Of this, direct insurers wrote $19.8 billion (92.2 per cent), up 1.1 per cent on the previous twelve month figure. The remaining $1.7 billion (7.8 per cent) that was written by reinsurers was up 10.6 per cent on the year to 30 June 2005.

Net incurred claims for the industry for the year ended 30 June 2006 were $12.4 billion, down 5.4 per cent on the previous year. This figure comprised direct insurer claims of $11.4 billion (down 6.2 per cent on the previous year) and reinsurer claims of $1.0 billion (up 4.4 per cent on the previous year).

Underwriting expenses have increased 11.1 per cent over the year to $5.7 billion, an increase of $0.6 billion over the year ended 30 June 2005. The total industry underwriting result was $3.4 billion for the year ended 30June 2006, an increase of $0.5 billion or 17.7 per cent on the year ended 30 June 2005. Underwriting result is net premium revenue less net incurred claims and underwriting expenses.

Industry net assets were $25 billion as at 30 June 2006, an increase of $1 billion (4.0 per cent) on the previous year.

APRA has refrained from commenting on the quarter by quarter data due primarily to inherent volatility in the quarterly figures and also the effect of recent clarifications by APRA of the manner in which insurers should be complying with prospective reporting requirements. Under prospective accounting, insurers are required to recognise premium revenue and expenses when contracts are bound. Insurers that did not fully report on a prospective basis up to the December 2005 quarter rectified their reporting methods for the lodgement of their March 2006 quarterly returns and where applicable, their December 2005 annual returns. These adjustments have influenced the data.

The report is located on the APRA website at: http://www.apra.gov.au/Statistics/Quarterly-General-Insurance-Statistics.cfm

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 $2.5 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