The Australian Prudential Regulation Authority (APRA) has released its quarterly life insurance performance data for the year ended June 30, 2022 (June 2022 quarter).
The publication summarises the Australian life insurance industry's financial performance, financial position, capital adequacy, and key ratios.
For the June 202 quarter, the Australian life insurance industry had a net profit after tax of $0.5 billion, down 51.6% from $1.0 billion in the June 2021 quarter (the year ended June 30, 2021). The industry also reported a return on net assets of 1.9%, a significant drop from 3.8% in the June 2021 quarter.
Net policy revenue remained stable at $14.7 billion for the year ended June 30, 2022, only a 0.8% increase from $14.6 billion in the previous year.
Other key performance figures for the Australian life insurance industry for the June 2022 quarter include:
Focusing on risk, APRA's report showed that risk products in the country returned outstanding results for the year ended June 30, 2022 – recording a profit of $1.2 billion, a dramatic jump from $18 million in the previous year. The report explained that the jump in profit was driven by a $1.1 billion profit recorded by individual disability income insurance (DII), a $1.5 billion increase from the previous year.
Individual lump sum returned a drop in profit from $403.3 million to $89.5 million. Meanwhile, group products returned mixed results relative to the prior year, with continued losses in group lump sum totalling $121.5 million, but group DII returning a profit of $76 million.
The publication of the Australian life insurance industry's latest numbers follows the release of APRA's general insurance and private health insurance statistics for the year ended June 30, 2022.
