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APRA releases life insurance statistics for September 2018

The Australian Prudential Regulation Authority (APRA) today released its Quarterly Life Insurance Performance Statistics publication for the September 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 September:
 
  September 2017 September 2018 Change
Net policy revenue $16.0 billion $17.9 billion +11.5%
Investment revenue $12.3 billion $17.5 billion +42.1%
Total revenue $31.6 billion $39.6 billion +25.4%
Net policy expenses $9.4 billion $10.0 billion +5.6%
Operating expenses $8.5 billion $9.7 billion +13.7%
Effective movement in net policy liabilities $10.0 billion $16.3 billion +63.6%
Total expenses $28.0 billion $36.2 billion +29.1%
Net profit after tax $2.4 billion $1.8 billion -24.1%
Total assets $229.6 billion $232.7 billion +1.4%
 
Risk product net profit after tax for the life insurance industry in the year ended 30 September:
 
Risk product September 2017 September 2018 September 2018 quarter only
Individual lump sum risk $800.9 million $749.4 million $88.5 million
Individual disability income insurance -$294.2 million -$275.7 million -$172.9 million
Group lump sum risk $256.1 million $109.5 million $7.2 million
Group disability income insurance $191.5 million $69.7 million $7.3 million
Key ratios for the life insurance industry in the year ended 30 September: 
 
  September 2017 September 2018 Change
Return on net assets 9.4% 7.1% -2.3 pp
Prescribed capital amount coverage ratio 1.90x 1.77x -0.13x

The ‘highlights’ section in the Quarterly Life Insurance Performance Statistics publication provides additional detail of the movements in key performance statistics.

The September 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

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, private health insurers, friendly societies, and most members of the superannuation industry. APRA currently supervises institutions holding $6 trillion in assets for Australian depositors, policyholders and superannuation fund members.

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