The Australian Prudential Regulation Authority (APRA) today released the Half Yearly General Insurance Bulletin for the year ended 30 June 2006, which shows gross premium revenue for APRA‑regulated general insurers of $28.2 billion, up $0.9 billion on the previous year.

Direct insurers reported gross premium revenue of $26.3 billion, making up 93.3 per cent of the total, while reinsurers accounted for the remaining 6.7 per cent, or $1.9 billion.

The domestic motor vehicle and householders classes of business accounted for the largest proportions of total direct gross premium revenue at 21.7 per cent and 14.9 per cent, respectively.

Gross incurred claims reported in the year ended 30 June 2006 were $17.7 billion, with $16.8 billion (94.8 per cent) made up by claims on direct insurers.

APRA Member John Trowbridge said that the capital position for regulated insurance companies remains strong. "In terms of risk-based capital measures, the industry’s capital coverage is currently 2.36 times the minimum capital requirement, a figure that has been rising since 2003."

"The strengthening capital position is also reflected in a 69.1 per cent increase in shareholders’ equity over the past five years, from $14.8 billion to $24.9 billion," he said.

Over the same five-year period, the net loss ratio for the industry has fallen progressively from 83 per cent to 59 per cent, and the return on equity has risen from 8.8 per cent to 23.3 per cent.

The Half Yearly General Insurance Bulletin is compiled from data lodged by APRA-regulated general insurance companies on audited annual returns between 1 July 2005 and 30 June 2006.

Copies of the bulletin are available on APRA's website at: http://www.apra.gov.au/Statistics/GI-Half-Yearly-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:
Andrew McCutcheon, Public Affairs Manager
Australian Prudential Regulation Authority
Telephone: 02 9210 3143
Mobile: 0417 528 660

All other inquiries:
APRA Contact Centre
1300 131 060