The Australian Prudential Regulation Authority (APRA) has published its quarterly insurance data for the June 2024 period.
The reports provide updated information on the performance of the general, life, and private health insurance sectors.
APRA’s latest figures for the general insurance sector reveal overall growth in key metrics.
Total insurance revenue for the quarter ended June 2024 reached $18.6 billion, an increase from $17.9 billion in December 2023.
The insurance service result improved significantly, climbing to $2.2 billion, mainly due to gains in short-tail property insurance, which rose to a profit of $1.1 billion from a loss of $605 million in the December quarter.
The allocation of reinsurance premiums was $4.1 billion in June, a slight decrease from previous quarters. Amounts recoverable from reinsurers grew to $2.1 billion, returning to December 2023 levels.
Overall, the sector saw profits after tax increase to $1.6 billion, up from $1.4 billion in the March 2024 quarter. The total number of insurers stood at 89 by the end of June, following a slight decrease in earlier quarters.
APRA has released the latest figures for the Australian general insurance sector amid the General Insurance Code of Practice review.
Last month, an independent panel tasked with reviewing the General Insurance Code of Practice released its initial findings, recommending updates to improve industry standards.
Chaired by former APRA deputy chair Helen Rowell, the panel has received 23 submissions from insurers, consumer advocates, and regulators. Key areas of focus include protections for small businesses and vulnerable consumers, particularly following natural disasters.
The panel’s second consultation paper is expected by the end of 2024, with final recommendations to follow after further industry engagement.
APRA’s life insurance data for June 2024 highlighted mixed results for the sector.
Total insurance revenue remained stable at A$5.9 billion, while the insurance service result fell to $457 million from $579 million in the previous quarter.
Investment returns declined significantly, dropping from $1.9 billion in December 2023 to $297 million in the June quarter.
APRA has released the latest figures for the Australian life insurance sector following its life insurance CEO roundtable in July 2024, focusing on the ongoing challenge of managing longevity risk. The roundtable also explored potential product innovations, including “soft default” options that could help retirees better navigate their savings decisions.
According to APRA’s latest report, the private health insurance sector showed weaker financial performance in the June quarter.
Insurance revenue totalled $7.7 billion, while the insurance service result dropped sharply to $109 million from $632 million in March 2024.
The sector’s prescribed capital amount coverage ratio held steady at 2.62, with the number of insurers unchanged at 30.
APRA has unveiled the latest data amid a surge in private health insurance demand in Australia, driving record growth for intermediaries.
