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APRA releases life insurance statistics for December 2017

Tuesday 27 February 2018

The Australian Prudential Regulation Authority (APRA) today released its Quarterly Life Insurance Performance Statistics publication for the December quarter 2017.

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 December 2016 12 months to December 2017 Change
Net policy revenue $16.8 billion $15.7 billion -6.5%
Investment revenue $12.4 billion $17.6 billion +41.8%
Total revenue $32.6 billion $36.2 billion +11.3%
Net policy expenses $8.8 billion $9.5 billion +7.7%
Operating expenses $8.7 billion $8.2 billion -5.8%
Effective movement in net policy liabilities $11.4 billion $14.0 billion +22.1%
​Total expenses ​$29.1 billion $31.9 billion​ +9.8%​
​Net profit after tax ​$2.3 billion $2.4 billion​ +5.6%​
​Total assets $225.2 billion​ $232.5 billion​ +3.2%​​

 

Risk product net profit after tax for the life insurance industry:

  12 months to December 2016 12 months to December 2017 December 2017 quarter only
Individual lump sum risk $877 million $1,139 million $377 million
Individual disability income insurance -$504 million -$60 million $34 million
Group lump sum risk $338 million $273 million $43 million
​Group disability income insurance ​-$43 million ​$216 million ​$50 million

 

Key ratios for the life insurance industry:

  12 months to December 2016 12 months to December 2017 Change
Return on net assets 9.3% 9.3% 0 pp
Prescribed capital amount coverage ratio 1.92x 2.07x +0.15x

 

Refer to the December 2017 Quarterly Life Insurance Performance Statistics publication.

Statistics

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