Total superannuation assets stood at $387.2 billion as at 31 March this year. This represented a growth rate of 2.6% for the March quarter, or 11% during the year to March 1999.
This is one of the key statistics in APRA Insurance and Superannuation Trends released today by APRAs Chief Executive Officer, Graeme Thompson.
Other statistics in the March quarter Trends show that:
- Contributions rose by 10.6% in the March 1999 quarter over the March 1998 quarter, or 15.1% in the year to March 1999 compared with the year to March 1998, an increase from $32.4 billion to $37.3 billion for the year.
- Strongest growth continues to come from member contributions. They increased by 22% over the previous year to $14.9 billion.
- Net contributions (ie. contributions less benefits) totalling $14.9 billion - a rise of $3.6 billion or 31.2% - flowed into superannuation during the year to March 1999.
As outlined in Trends, self-managed or DIY funds, industry funds and retail fund assets were the fastest growing market segments during the year to March 1999, all growing by 23%.
In comparison, reflecting continuing consolidation and rationalisation in how companies are managing their superannuation, corporate fund assets grew by 7% during the year, while public sector fund assets grew by 11%.
Life company statutory fund assets also showed strong growth, increasing by 2.3% during the quarter, or 9% during the year to stand at $165.5 billion by the end of March 1999. Reinforcing the industry focus on superannuation business, superannuation premiums amounted to $31.7 billion for the year to March 1999, up 17.9% (or $4.8 billion) on the previous 12 months. Superannuation premiums now represent 86.6% of total life company premiums.
Total assets of private sector general insurers had reached $58.5 billion by the end of March 1999, an increase of 10.3% during the previous 12 months. In the year to March 1999 premium revenue was 6% higher than in the previous year at $14.7 billion, while claims expense increased by 13% over the previous year to $12.8 billion. The increase in claims expense primarily resulted from losses incurred in the reinsurance market and general strengthening of provisions.
APRA Insurance and Superannuation Trends is a new publication by APRA, replacing the Insurance and Superannuation Bulletin. It will be published on the APRA web site, 'http://www.apra.gov.au' on the last Wednesday of each quarter, enabling APRA to both reduce costs and increase the circulation of these statistics. By utilising the flexibility of web site publication, APRA will also be able to provide this information in a more timely and comprehensive fashion.
Attachments to this statement include the Superannuation survey highlights March 1999, which provides additional information on the manner of investment and asset allocation of superannuation; while Superannuation industry at a glance provides a snapshot of the current structure of the superannuation industry.
This media release and accompanying attachments are available from the APRA web site.
APRA Insurance and Superannuation Trends
Further information :
Tony Nichols
Insurance & Superannuation Research and Publications Unit
APRA
(02) 6213 5378
