From a $1 billion loss in the March 2020 quarter, Australia’s general insurance industry has bounced back to a net profit after tax of $1 billion in the quarter ended June 30.
Lifting the lid on the industry’s performance, the Australian Prudential Regulation Authority (APRA) noted: “The June quarter profit was largely driven by a domestic motor underwriting profit totalling $0.7 billion, and a minor rebound in investment income following the large investment loss in the March quarter.”
According to the quarterly figures released by APRA, the general insurance industry enjoyed a turnaround in terms of both underwriting and investment.
The general insurance industry’s investment income in the June quarter amounted to $683 million – a better showing compared to the $81 million investment loss suffered during the March quarter. Meanwhile the underwriting result improved to $1.1 billion, from a previous underwriting loss worth $1 billion.
As for year-on-year performance, though, industry profit fell more than 70% due to lower underwriting results from catastrophic bushfire and storm events, as well as the blow dealt to investment income by the negative impact of the coronavirus crisis on investments markets.
