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APRA releases new annual publication on friendly societies

Wednesday 2 June 2010

 

10.13

The Australian Prudential Regulation Authority (APRA) today released the first edition of a new annual statistical publication on friendly societies, with figures for the year to end-June 2009.

The Annual Friendly Society Bulletin is APRA’s first statistical publication dedicated to friendly societies and follows the introduction of updated reporting requirements for friendly societies from 1 January 2008.

The publication provides aggregate annual data on financial performance, financial position, solvency and capital adequacy, as well as information on the performance of individual friendly societies.

APRA Executive Member John Trowbridge said the new publication will help address a shortfall in publicly available information.

‘The Annual Friendly Society Bulletin will provide, for the first time, industry-wide data that all friendly societies and other interested parties will be able to use to make their own assessments of individual friendly societies and the industry as a whole.

‘The data in the new publication illustrate that, overall, the friendly society industry was well capitalised and financially sound as at 30 June 2009.’

Net premiums for the year to June 2009 were $360.3 million for investment-linked business and $236.6 million for non-investment-linked business. The corresponding net policy payments were $382.3 million for investment-linked business and $493.9 million for non-investment-linked business.

The solvency coverage for the industry was 1.52 times the minimum amount required to meet the solvency reserve. Total assets for all friendly societies at 30 June 2009 were $6,059 million. More information can be found in the Annual Friendly Society Bulletin.

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