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APRA releases life insurance statistics for March 2023

Thursday 25 May 2023

The Australian Prudential Regulation Authority (APRA) has released its quarterly life insurance performance statistics publication for the March 2023 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 ending 31 March:

 

Year ending Mar-22 ($bn)

Year ending Mar-23 ($bn)

Yearly Change

   Net policy revenue

14.9

15.6

5.0%

   Investment revenue

0.8

1.1

40.7%

Total revenue

16.7

17.8

6.6%

   Net policy expenses

9.1

9.5

4.3%

   Operating expenses

7.0

7.2

2.2%

   Effective movement in net policy liabilities

-1.1

-0.2

-78.8%

Total expenses

15.3

16.6

8.7%

Net profit after tax

1.1

1.0

-4.9%

Total assets

126.6

126.7

0.1%

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

 

Dec 2022 Quarter ($bn)

Mar 2023 Quarter ($bn)

Quarterly change

   Net policy revenue

4.1

3.8

-6.3%

   Investment revenue

1.7

3.8

122.1%

Total revenue

6.1

7.9

29.0%

   Net policy expenses

2.4

2.4

-2.2%

   Operating expenses

2.0

2.1

3.7%

   Effective movement in net policy liabilities

0.9

2.4

150.9%

Total expenses

5.4

6.9

26.8%

Net profit after tax

451.6 m

652.3 m

44.4%

Total assets

123.4

126.7

2.7%

For the year ending 31 March 2023, the industry reported a net profit after tax of $1 billion and a return on net assets of 3.8 per cent, which was slightly below the results from the previous year. 

Risk products returned a net profit after tax of $872 million. Individual Lump Sum and Individual Disability Income Insurance (Individual DII) business reported weaker profits than the previous year because of an increase in net policy expenses for Individual Lump Sum business and lower reserve releases for Individual DII business. Group Lump Sum and Group Disability Income Insurance (Group DII) business reported an improvement in performance in comparison to the prior year, which was in large part due to higher investment revenue for Group Lump Sum business and reserve releases for Group DII business.

The industry prescribed capital coverage ratio increased from 1.99x to 2.09x over the year ending 31 March 2023.

Net profit after tax by product for the life insurance industry for the period ending 31 March:

Risk product

Year ending Mar 2022 ($m)

Year ending Mar 2023 ($m)

Mar 2023 quarter only ($m)

Individual lump sum

430.5

238.4

545.0

Individual disability income insurance

713.2

523.9

-96.4

Group lump sum

-198.6

-59.3

-121.8

Group disability income insurance

28.1

169.4

-76.4

Total

973.3

872.4

250.4

Key ratios for the life insurance industry:

 

Year ending Mar 2022

Year ending Mar 2023

Dec 2022 Quarter

Mar 2023 Quarter

Return on net assets

4.0%

3.8%

7.0%

10.0%

Prescribed capital amount coverage ratio

1.99x

2.09x

2.04x

2.09x

The March 2023 quarterly life insurance performance statistics publication is available on APRA’s website at: Quarterly life insurance performance statistics.

Statistics

Media enquiries

Contact APRA Media Unit, on +61 2 9210 3636

All other enquiries

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, 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.