APRA releases life insurance statistics for December 2017
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.
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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.