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APRA releases general insurance statistics for March 2022

Thursday 26 May 2022

The Australian Prudential Regulation Authority (APRA) has released its Quarterly General Insurance Performance Statistics and Quarterly General Insurance Institution-level Statistics publications for the March 2022 quarter.

The Quarterly General Insurance Performance Statistics publication provides industry aggregate summaries of financial performance, financial position, capital adequacy and key ratios. The publication also includes detailed statistics at a class-of-business level, a breakdown of operating income and expenses, and more granular solvency information.

Industry reported a net profit after tax of $1.3 billion and a return on net assets of 4.3 per cent during the year ended 31 March 2022, an increase compared to the prior year. The increase in net profit was driven by a stronger underwriting result, in part reflecting the impact of premium increases across certain classes of business. Gross incurred claims costs were also higher as a result of the New South Wales and south east Queensland floods. The industry recorded a significant investment loss of $942 million – driven by unrealised losses on interest bearing investments due to a sharp increase in bond yields during the March quarter.

The industry PCA coverage ratio increased slightly in the year ended 31 March 2022 to 1.71x, up from the ratio of 1.69x reported for the same period last year.

Key performance statistics for the general insurance industry in the year ended 31 March:

 

March 2021

March 2022

Change (annual)

Gross claims expense

$41.5bn

$44.6bn

7.3%

Underwriting result

$1.6bn

$4.7bn

204.4%

Investment income

$1.6bn

$-0.9bn

Significant

Net profit after tax

$1.1bn

$1.3bn

16.7%

Key ratios for the general insurance industry:

 

March 2021

March 2022

Change (annual)

Net loss ratio

71%

65%

-6 percentage points

Return on net assets

3.9%

4.3%

+0.4 percentage points

Prescribed capital amount coverage ratio

1.69x

1.71x

+0.02x

The Quarterly General Insurance Institution-level Statistics publication contains individual insurer information about financial performance, financial position, capital adequacy and key ratios. The quarterly performance statistics of insurers may be impacted by factors outside of their control, such as natural catastrophe events, as well as those driven by their internal processes, such as the timing of actuarial valuations. Users should take these factors into account when interpreting the statistics.

Copies of the 31 March 2022 quarterly publications are available on APRA’s website at: Quarterly general insurance statistics.

Media enquiries

Contact APRA Media Unit, on +61 2 9210 3636

All other enquiries

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, 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 $7.9 trillion in assets for Australian depositors, policyholders and superannuation fund members.