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APRA releases life insurance statistics for June 2018

Thursday 23 August 2018

The Australian Prudential Regulation Authority (APRA) today released its Quarterly Life Insurance Performance Statistics publication for the June 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 June 2018:

  June 2017 June 2018 Change
Net policy revenue $15.9 billion $18.0 billion +13.5%
Investment revenue $14.8 billion $16.0 billion +8.3%
Total revenue $33.7 billion $37.6 billion +11.5%
Net policy expenses $9.4 billion $9.8 billion +4.8%
Operating expenses $8.3 billion $8.9 billion +7.0%
Effective movement in net policy liabilities $12.2 billion $14.9 billion +21.4%
Total expenses $30.1 billion $33.8 billion +12.4%
Net profit after tax $2.2 billion $2.1 billion -3.8%
Total assets $229.5 billion $232.5 billion +1.3%

Risk product net profit after tax for the life insurance industry in the year ended 30 June 2018:

  June 2017 June 2018 June 2018 quarter only
Individual lump sum $836 million $649 million -$29 million
Individual disability income insurance -$365 million -$74 million -$36 million
Group lump sum risk $187 million $185 million $26 million
Group disability income insurance $155 million $86 million $9 million

Key ratios for the life insurance industry in the year ended 30 June 2018:

  June 2017 June 2018 Change
Return on net assets 8.7% 8.3% -0.4pp
Prescribed capital amount coverage ratio 1.88x 1.86x -0.02x

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

The June 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.

Statistics

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Contact Ben McLean, APRA Media Unit, on +61 2 9210 3024

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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 $6.5 trillion in assets for Australian depositors, policyholders and superannuation fund members.