The Australian Prudential Regulation Authority (APRA) has issued its updated quarterly insurance statistics, covering data from the periods of September 2023 to March 2024.
This release includes comprehensive figures on general insurance, life insurance, and private health insurance, providing detailed insights into financial performance, asset positions, and capital adequacy within these sectors.
For the March 2024 quarter, the Australian general insurance sector – which recently published a new standard to improve the use of independent expert reports in the claims process – recorded an insurance revenue of A$18.2 billion, up from A$17.9 billion in December 2023.
Insurance service expenses showed a slight decline, dropping to A$14.3 billion from A$14.9 billion in the previous quarter. This led to an improved insurance service result of A$1.4 billion, compared to A$861 million in December 2023.
The sector’s investment income decreased to A$1.4 billion for the March 2024 quarter, down from A$1.7 billion in December 2023.
Although the net insurance financial result through profit or loss remained negative, it narrowed from a loss of A$573 million in December 2023 to a loss of A$408 million in March 2024. Profit after income tax increased to A$1.4 billion in March 2024, up from A$938 million in the previous quarter.
General insurance assets grew to A$134.0 billion by March 2024, compared to A$130.7 billion in December 2023. Net assets also saw an increase, reaching A$37.2 billion, up from A$36.2 billion.
The prescribed capital amount coverage ratio slightly improved, moving from 1.78 in December 2023 to 1.81 in March 2024.
The life insurance sector, which recently saw seasoned leaders discuss the challenges and opportunities associated with longevity risk management in the country, reported that insurance revenue decreased to A$5.8 billion in March 2024, down from A$6.0 billion in December 2023.
Insurance service expenses also saw a reduction, falling to A$4.7 billion from A$6.0 billion in the previous quarter. The insurance service result improved significantly, rising to A$579 million, a substantial increase from A$43 million in December 2023.
Investment returns for the life insurance sector declined to A$858 million in March 2024, from A$1.97 billion in December 2023. However, the net insurance financial result through profit or loss showed improvement, reducing its loss from A$2.2 billion in December 2023 to a loss of A$495 million in March 2024.
The sector’s profit from continuing operations after income tax turned positive, with A$628 million in March 2024, compared to a loss of A$439 million in December 2023.
Total assets in the life insurance sector increased to A$135.8 billion by March 2024, up from A$134.4 billion in December 2023. Net assets also grew, reaching A$19.5 billion from A$19.1 billion in the previous quarter.
The prescribed capital amount coverage ratio increased slightly, moving from 1.98 in December 2023 to 2.03 in March 2024.
The private health insurance sector reported an insurance revenue of A$7.8 billion for the March 2024 quarter, consistent with the December 2023 figure.
Insurance service expenses decreased marginally to A$7.1 billion, compared to A$7.3 billion in the previous quarter. As a result, the insurance service result improved to A$634 million, up from A$489 million in December 2023.
Investment income for the sector increased to A$369 million in March 2024, up from A$343 million in December 2023. Profit from continuing operations after income tax rose to A$800 million, compared to A$624 million in the previous quarter.
The sector’s total assets grew to A$20.4 billion by March 2024, from A$19.4 billion in December 2023, while total liabilities increased to A$7.8 billion, up from A$7.2 billion.
The prescribed capital amount coverage ratio remained steady at 2.58 throughout the March 2024 period. The number of private health insurance entities remained unchanged at 30.
The release of the latest quarterly report covering the private health insurance sector comes after the publication of APRA’s annual Private Health Insurance Coverage Survey for the December 2023 period, which outlined detailed data on the number of individuals with hospital treatment cover, categorised by age, gender, and state of residence.
