The Australian Prudential Regulation Authority (APRA) has released its quarterly statistical reports for the general and life insurance sectors, covering the September 2024 period.
The data highlighted trends in financial performance, industry assets, and policy coverage across these markets.
APRA’s report provided an overview of the general insurance sector, including financial performance, capital adequacy, and results for specific business classes.
Insurance revenue totalled $19.2 billion, up from $18.6 billion in the previous quarter. Insurance service expenses declined to $13.9 billion, compared to $14.3 billion in the June quarter.
Profit after tax increased to $2.1 billion from $1.54 billion. Return on net assets rose to 5.4%, reflecting improved profitability.
Results varied across different insurance classes. Short-tail property insurance contributed $1.03 billion, while long-tail classes – including liability and workers’ compensation – fell to $239 million.
The industry’s total capital base increased to $38.2 billion, up from $37.1 billion. The prescribed capital amount coverage ratio rose to 1.85, compared to 1.80 in the previous quarter, indicating strong financial resilience.
The life insurance sector demonstrated mixed results, with higher revenue but challenges in profitability for certain segments.
Insurance revenue rose to $6.2 billion, up from $5.9 billion in the June quarter.
Insurance service expenses declined slightly to $5.4 billion. Insurance service result improved to $639 million, compared to $393 million previously.
Net profit after tax increased to $459 million from $116 million in the prior quarter.
The sector’s return on net assets reached 2.4%, an improvement over the June quarter’s 0.6%. The capital base stood at $16.9 billion, while the prescribed capital amount coverage ratio increased to 2.15.
APRA also released its quarterly update on private health insurance (PHI), tracking membership changes, benefits paid, and out-of-pocket costs.
Hospital policies covered 5.9 million people, representing 45% of the population, a net increase of 105,601 policies since June. General treatment policies reached 14.7 million individuals (54.7% of the population), an increase of 112,764 policies.
Membership gains were led by the 25-29 age group, while the 0-4 age bracket saw the largest net increase overall.
APRA released the latest statistics amid calls on Australians to claim benefits for unused extras services before most annual limits reset in January.
