The Australian Prudential Regulation Authority (APRA) today released its Quarterly Life Insurance Performance Statistics publication for the September 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 September:
| September 2017 | September 2018 | Change | |
|---|---|---|---|
| Net policy revenue | $16.0 billion | $17.9 billion | +11.5% |
| Investment revenue | $12.3 billion | $17.5 billion | +42.1% |
| Total revenue | $31.6 billion | $39.6 billion | +25.4% |
| Net policy expenses | $9.4 billion | $10.0 billion | +5.6% |
| Operating expenses | $8.5 billion | $9.7 billion | +13.7% |
| Effective movement in net policy liabilities | $10.0 billion | $16.3 billion | +63.6% |
| Total expenses | $28.0 billion | $36.2 billion | +29.1% |
| Net profit after tax | $2.4 billion | $1.8 billion | -24.1% |
| Total assets | $229.6 billion | $232.7 billion | +1.4% |
Risk product net profit after tax for the life insurance industry in the year ended 30 September:
| Risk product | September 2017 | September 2018 | September 2018 quarter only |
|---|---|---|---|
| Individual lump sum risk | $800.9 million | $749.4 million | $88.5 million |
| Individual disability income insurance | -$294.2 million | -$275.7 million | -$172.9 million |
| Group lump sum risk | $256.1 million | $109.5 million | $7.2 million |
| Group disability income insurance | $191.5 million | $69.7 million | $7.3 million |
Key ratios for the life insurance industry in the year ended 30 September:
| September 2017 | September 2018 | Change | |
|---|---|---|---|
| Return on net assets | 9.4% | 7.1% | -2.3 pp |
| Prescribed capital amount coverage ratio | 1.90x | 1.77x | -0.13x |
The ‘highlights’ section in the Quarterly Life Insurance Performance Statistics publication provides additional detail of the movements in key performance statistics.
The September 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