The Australian Prudential Regulation Authority (APRA) has released general insurance statistics for the June 2023 quarter.
The performance statistics publication includes aggregate summaries of the general insurance industry’s financial performance, financial position, capital adequacy, and key ratios. It also provides detailed statistics at a class-of-business level, a breakdown of operating income and expenses, and more granular solvency information. Meanwhile, the institution-level statistics include individual insurer information related to financial performance, financial position, capital adequacy, and ratios.
For the year ending June 30, 2023, the Australian general insurance industry reported a net profit after tax of $4.6 billion and a return on net assets of 14%, driven by the recovery of investment returns.
Underwriting results also remained strong due to rising premiums in response to higher claims costs. By contrast, gross incurred claims decreased slightly due to lower claims in the householder/houseowner and fire/ISR lines of business following high peaks in the previous year due to the 2022 southeast Queensland and New South Wales floods.
During the same period, the industry reported $66.0 billion gross earned premium, $44.1 billion gross claims expense, and $5.7 billion underwriting result.
On June 30, 2023, the industry’s aggregate prescribed capital amount (PCA) coverage ratio increased to 1.74x.
APRA issued a reminder that insurers’ quarterly performance statistics might be affected by internal factors, including the timing of actuarial valuations, and factors outside of the companies’ control, such as natural catastrophe events.
The regulator also recently published its latest quarterly private health insurance statistics for the June 2023 quarter.
