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APRA releases improved quarterly life insurance statistics

Tuesday 21 May 2013

 

13.14

The Australian Prudential Regulation Authority (APRA) has today released the March 2013 edition of the Quarterly Life Insurance Performance Statistics, which has been enhanced following APRA’s consultation on proposed changes to life insurance statistical publications.

As a result of this consultation, the quarterly publication now contains an additional 40 life insurance statistics, including statistics based on the recently revised capital reporting framework and statistics at the product level, such as ‘gross insurance policy revenue’ and ‘gross insurance policy expenses’.

These enhancements provide users with access to more life insurance statistics on a more timely basis, and are intended to assist research, public discussion and decision-making on the life insurance industry.

The publication shows that total revenue was $40.3 billion for the year to 31 March 2013, taking into account $13.0 billion revenue for the March quarter, an increase of $20.4 billion over the previous year. Total expenses were $34.9 billion for the year to 31 March 2013, including $11.5 billion in the March quarter, an increase of $18.6 billion over the previous year. These large movements in total revenue and total expenses were due mainly to an increase in investment market performance over the previous year. Total investment revenue was $25.4 billion for the year to 31 March 2013, an increase of $18.8 billion over the previous year. The increase to total expenses was mainly due to increases in net policy liabilities for investment linked business that was driven by the increase in investment performance.

Net profit after tax was $3.0 billion in the year to 31 March 2013, including $723 million in the March quarter. The return on net assets was 15.1 per cent for the year, which was an increase from the previous year’s return on net assets of 14.0 per cent.

APRA will publish a new database version of the quarterly publication on 12 November 2013 for the September 2013 reference period, which will include an additional 24 new statistics. Over the next year, APRA will also release an improved Annual Friendly Society Bulletin and introduce two new statistical publications — Life Insurance Institution-Level Statistics and Life Insurance Supplementary Statistical Tables.

Refer to the March 2013 Quarterly Life Insurance Performance Statistics publication.

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.