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APRA releases life insurance statistics for March 2021

Thursday 27 May 2021

The Australian Prudential Regulation Authority (APRA) today released its Quarterly Life Insurance Performance Statistics publication for the March 2021 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 for the year ended 31 March:

 

Year ended Mar‑20 ($bn)

Year ended Mar‑21($bn)

Yearly Change

   Net policy revenue

15.6

14.1

-9.5%

   Investment revenue

1.8

7.1

299.5%

Total revenue

19.5

22.2

14.2%

   Net policy expenses

10.6

9.5

-10.6%

   Operating expenses

8.3

6.9

-16.8%

   Effective movement in net policy liabilities

3.2

4.0

24.1%

Total expenses

22.4

20.4

-9.3%

Net profit after tax

-1.8

1.0

 

Total assets

184.5

129.5

-29.8%

Key performance statistics for the life insurance industry for the quarter ended 31 March:

 

Dec 2020
Quarter ($bn)

Mar 2021
Quarter ($bn)

Quarterly
change

   Net policy revenue

3.5

3.4

-3.3%

   Investment revenue

2.5

-1.0

 

Total revenue

6.2

2.6

-57.4%

   Net policy expenses

2.4

2.2

-6.4%

   Operating expenses

1.7

1.6

-8.0%

   Effective movement in net policy liabilities

1.1

-1.4

 

Total expenses

5.3

2.4

-53.8%

Net profit after tax

0.4

0.2

-62.7%

Total assets

130.2

129.5

-0.6%

The life insurance industry is gradually recovering from the economic impacts associated with the pandemic. The net profit after tax for the industry was $1.0 billion for the year ended March 2021, a significant improvement from the previous year primarily owing to the improved investment market performance. 

For the 12 months ended March 2021, risk products reported a combined net loss after tax of $164.7 million. In particular, Individual Disability Income Insurance (also known as Income Protection Insurance) reported a loss of $331.2 million during the year, which is a $1.1 billion improvement in comparison to the previous year’s result. Results for Group Lump Sum and Group Disability Income Insurance have also improved this year. 

Net profit after tax by product for the life insurance industry for the year ended 31 March:

Risk product

Year ended
Mar 2020 ($m)

Year ended
Mar 2021 ($m)

Mar 2021
quarter only ($m)

Individual lump sum

386.9

316.5

-165.7

Individual disability income insurance

-1,398.1

-331.2

264.8

Group lump sum

-370.8

-91.8

21.2

Group disability income insurance

-242.1

-58.3

56.2

Total

-1,624.1

-164.7

176.6

Key ratios for the life insurance industry for the year ended 31 March:

 

Year ended Mar 2020

Year ended Mar 2021

Yearly Change

Dec 2020 Quarter

Mar 2021 Quarter

Quarterly change

Return on net assets

-7.3%

4.0%

11.2 percentage points

6.5%

2.4%

-4.1 percentage points

Prescribed capital amount coverage ratio

1.76x

1.85x

0.09x

1.79x

1.85x

0.05x

The March 2021 Quarterly Life Insurance Performance Statistics publication is available on APRA’s website at: Quarterly life insurance performance statistics.

Statistics

For more information

Email dataanalytics@apra.gov.au or mail to

Manager, External Data Reporting – Data Analytics and Insights
Australian Prudential Regulation Authority
GPO Box 9836, Sydney NSW 2001

Looking for discontinued publications?

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