APRA releases life insurance statistics for September 2021
The Australian Prudential Regulation Authority (APRA) today released
its Quarterly Life Insurance Performance Statistics publication for
the September 2021 quarter.
The Quarterly Life Insurance
Performance Statistics publication provides industry aggregate
summaries of financial performance, financial position, capital
adequacy and key ratios.
Key performance statistics for the
life insurance industry for the year ended 30 September:
Year
ended Sep-20 ($bn)
Year ended Sep-21 ($bn)
Yearly
Change
Net policy revenue
14. 7
14. 6
-0. 6%
Investment revenue
-3. 3
5. 4
Total revenue
12. 9
20. 9
62.
0%
Net policy expenses
9. 9
9. 2
-7.
0%
Operating expenses
7. 5
7. 0
-6.
8%
Effective movement in net policy liabilities
-1. 7
2. 2
Total expenses
15. 9
18. 6
16. 7%
Net profit after tax
-1. 6
1.
4
Total assets
128. 9
134. 2
4.
1%
Key performance statistics for the life insurance industry
for the quarter ended 30 June:
Jun 2021 Quarter ($bn)
Sep 2021 Quarter ($bn)
Quarterly change
Net
policy revenue
3. 9
3. 8
-1.
2%
Investment revenue
3. 1
0. 7
-76.
4%
Total revenue
7. 3
4. 8
-33.
6%
Net policy expenses
2. 2
2. 3
3.
1%
Operating expenses
1. 9
1. 8
-3.
2%
Effective movement in net policy liabilities
2. 3
0. 2
-91. 0%
Total expenses
6. 5
4. 4
-32. 5%
Net profit after tax
408. 2m
375. 2m
-8. 1%
Total assets
132. 7
134. 2
1. 1%
The overall
performance of the life insurance industry is improving. The net
profit after tax for the industry was $1. 4 billion for the year ended
September 2021, a significant improvement from the previous year
primarily owing to improved investment market performance.
Risk products demonstrated significant improvements for the 12
months ended September 2021 as they returned a combined profit of
$439. 1 million, a $2. 0 billion improvement in comparison to the
prior year. Individual Disability Income Insurance reported a profit
of $124. 0 million, a return to profitability following a substantial
loss recorded in the prior year. Group Lump Sum and Group Disability
Income Insurance returned losses for the 12 months ended September
2021, however, the losses were at a significantly lower level in
comparison to the previous year.
Net profit after tax by
product for the life insurance industry for the year ended 30
September:
Risk product
Year ended Sep 2020 ($m)
Year ended Sep 2021 ($m)
Sep 2021 quarter only
($m)
Individual lump sum
361. 6
427. 0
186. 7
Individual disability income insurance
-1,414. 7
124. 0
144. 9
Group lump
sum
-403. 2
-97. 5
-122. 6
Group
disability income insurance
-147. 9
-14. 4
26. 7
Total
-1,604. 2
439. 1
235. 6
Key ratios for the life insurance industry for
the year ended 30 September:
Year ended Sep 2020 Year ended
Sep 2021 Jun 2021 Quarter Sep 2021 Quarter
Return on net
assets -6. 4% 5. 2% 6. 2% 5. 8%
Prescribed capital amount
coverage ratio 1. 77x 1. 95x 1. 94x 1. 95x
The September
2021 Quarterly Life Insurance Performance Statistics publication is
available on APRA’s website at: Quarterly life insurance performance
statistics.