APRA releases life insurance statistics for June 2018
The Australian Prudential Regulation Authority (APRA) today released its Quarterly Life Insurance Performance Statistics publication for the June 2018 quarter.
The Quarterly Life Insurance Performance Statistics publication provides industry aggregate summaries of financial performance, financial position, capital adequacy and key ratios.
Key performance statistics for the life insurance industry in the year ended 30 June 2018:
| June 2017 | June 2018 | Change | |
|---|---|---|---|
| Net policy revenue | $15.9 billion | $18.0 billion | +13.5% |
| Investment revenue | $14.8 billion | $16.0 billion | +8.3% |
| Total revenue | $33.7 billion | $37.6 billion | +11.5% |
| Net policy expenses | $9.4 billion | $9.8 billion | +4.8% |
| Operating expenses | $8.3 billion | $8.9 billion | +7.0% |
| Effective movement in net policy liabilities | $12.2 billion | $14.9 billion | +21.4% |
| Total expenses | $30.1 billion | $33.8 billion | +12.4% |
| Net profit after tax | $2.2 billion | $2.1 billion | -3.8% |
| Total assets | $229.5 billion | $232.5 billion | +1.3% |
Risk product net profit after tax for the life insurance industry in the year ended 30 June 2018:
| June 2017 | June 2018 | June 2018 quarter only | |
|---|---|---|---|
| Individual lump sum | $836 million | $649 million | -$29 million |
| Individual disability income insurance | -$365 million | -$74 million | -$36 million |
| Group lump sum risk | $187 million | $185 million | $26 million |
| Group disability income insurance | $155 million | $86 million | $9 million |
Key ratios for the life insurance industry in the year ended 30 June 2018:
| June 2017 | June 2018 | Change | |
|---|---|---|---|
| Return on net assets | 8.7% | 8.3% | -0.4pp |
| Prescribed capital amount coverage ratio | 1.88x | 1.86x | -0.02x |
The ‘highlights’ section in the Quarterly Life Insurance Performance Statistics publication provides additional detail for the movements in key performance statistics.
The June 2018 Quarterly Life Insurance Performance Statistics publication is available on APRA’s website at: https://www.apra.gov.au/publications/quarterly-life-insurance-performance-statistics.
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The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, mutuals, general insurance and reinsurance companies, life insurance, private health insurers, friendly societies, and most members of the superannuation industry. APRA currently supervises institutions holding around $9 trillion in assets for Australian depositors, policyholders and superannuation fund members.