APRA releases life insurance statistics for March 2018
The Australian Prudential Regulation Authority (APRA) today released its Quarterly Life Insurance Performance Statistics publication for the March 2018 quarter.
The Quarterly Life Insurance Performance Statistics publication provides industry aggregate summaries of financial performance, financial position, capital adequacy and key ratios in a time series.
Key performance statistics for the life insurance industry:
| 12 months to March 2017 | 12 months to March 2018 | Change |
|---|---|---|---|
| Net policy revenue | $15.5 billion | $17.3 billion | +12.0% |
| Investment revenue | $19.0 billion | $12.3 billion | -35.1% |
| Total revenue | $37.6 billion | $33.1 billion | -12.0% |
| Net policy expenses | $9.2 billion | $9.8 billion | +6.7% |
| Operating expenses | $8.7 billion | $8.8 billion | +1.9% |
| Effective movement in net policy liabilities | $15.7 billion | $10.8 billion | -31.3% |
| Total expenses | $33.6 billion | $29.6 billion | -11.9% |
| Net profit after tax | $2.3 billion | $2.2 billion | -3.5% |
| Total assets | $227.1 billion | $230.1 billion | +1.3% |
Risk product net profit after tax for the life insurance industry:
| 12 months to March 2017 | 12 months to March 2018 | March 2018 quarter only | |
|---|---|---|---|
| Individual lump sum risk | $762 million | $1,085 million | $174 million |
| Individual disability income insurance | -$424 million | -$146 million | -$4 million |
| Group lump sum risk | $263 million | $248 million | $53 million |
| Group disability income insurance | $79 million | $120 million | $28 million |
Key ratios for the life insurance industry:
| 12 months to March 2017 | 12 months to March 2018 | Change | |
|---|---|---|---|
| Return on net assets | 9.2% | 8.7% | -0.5 pp |
| Prescribed capital amount coverage ratio | 1.79x | 1.87x | +0.08x |
Copies of the March 2018 Quarterly Life Insurance Performance Statistics publication are available on APRA’s website.
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For more information contact APRA on 1300 558 849.
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.