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APRA releases life insurance statistics for September 2021

Thursday 25 November 2021

The Australian Prudential Regulation Authority (APRA) today released its Quarterly Life Insurance Performance Statistics publication for the September 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 30 September:

 

Year ended Sep-20 ($bn)

Year ended Sep-21 ($bn)

Yearly Change

   Net policy revenue

14.7

14.6

-0.6%

   Investment revenue

-3.3

5.4

 

Total revenue

12.9

20.9

62.0%

   Net policy expenses

9.9

9.2

-7.0%

   Operating expenses

7.5

7.0

-6.8%

   Effective movement in net policy liabilities

-1.7

2.2

 

Total expenses

15.9

18.6

16.7%

Net profit after tax

-1.6

1.4

 

Total assets

128.9

134.2

4.1%

Key performance statistics for the life insurance industry for the quarter ended 30 June:

 

Jun 2021 Quarter ($bn)

Sep 2021 Quarter ($bn)

Quarterly change

   Net policy revenue

3.9

3.8

-1.2%

   Investment revenue

3.1

0.7

-76.4%

Total revenue

7.3

4.8

-33.6%

   Net policy expenses

2.2

2.3

3.1%

   Operating expenses

1.9

1.8

-3.2%

   Effective movement in net policy liabilities

2.3

0.2

-91.0%

Total expenses

6.5

4.4

-32.5%

Net profit after tax

408.2m

375.2m

-8.1%

Total assets

132.7

134.2

1.1%

The overall performance of the life insurance industry is improving. The net profit after tax for the industry was $1.4 billion for the year ended September 2021, a significant improvement from the previous year primarily owing to improved investment market performance. 

Risk products demonstrated significant improvements for the 12 months ended September 2021 as they returned a combined profit of $439.1 million, a $2.0 billion improvement in comparison to the prior year. Individual Disability Income Insurance reported a profit of $124.0 million, a return to profitability following a substantial loss recorded in the prior year. Group Lump Sum and Group Disability Income Insurance returned losses for the 12 months ended September 2021, however, the losses were at a significantly lower level in comparison to the previous year. 

Net profit after tax by product for the life insurance industry for the year ended 30 September:

Risk product

Year ended Sep 2020 ($m)

Year ended Sep 2021 ($m)

Sep 2021 quarter only ($m)

Individual lump sum

361.6

427.0

186.7

Individual disability income insurance

-1,414.7

124.0

144.9

Group lump sum

-403.2

-97.5

-122.6

Group disability income insurance

-147.9

-14.4

26.7

Total

-1,604.2

439.1

235.6

Key ratios for the life insurance industry for the year ended 30 September:

 

Year ended Sep 2020

Year ended Sep 2021

Jun 2021 Quarter

Sep 2021 Quarter

Return on net assets

-6.4%

5.2%

6.2%

5.8%

Prescribed capital amount coverage ratio

1.77x

1.95x

1.94x

1.95x

The September 2021 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, 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 $7.9 trillion in assets for Australian depositors, policyholders and superannuation fund members.