APRA releases general insurance statistics for June 2021
The Australian Prudential Regulation Authority (APRA) today released its Quarterly General Insurance Performance Statistics and Quarterly General Insurance Institution Level Statistics publications for the June 2021 quarter.
The Quarterly General Insurance Performance Statistics publication provides industry aggregate summaries of financial performance, financial position, capital adequacy and key ratios. The publication also includes detailed statistics at a class-of-business level, a breakdown of operating income and expenses, and more granular solvency information.
Industry reported a net profit after tax of $1.0 billion and return on net assets of 3.4 per cent during the year ended 30 June 2021. Stronger underwriting results were constrained by provisioning for COVID-19 related Business Interruption (BI) claims, and large natural catastrophe claims costs. Investment market volatility resulted in investment income, although increasing, continuing to be lower than pre-COVID-19 levels.
The industry PCA coverage ratio increased slightly in the year ended 30 June 2021 to 1.71x, up from the ratio of 1.68x reported for the same period last year.
Key performance statistics for the general insurance industry in the year ended 30 June:
| June 2020 | June 2021 | Change (annual) |
|---|---|---|---|
Gross claims expense | $42.8bn | $42.4bn | -1.0% |
Underwriting result | $1.3bn | $1.5bn | 17.6% |
Investment income | $1.4bn | $1.6bn | 8.9% |
Net profit after tax | $0.9bn | $1.0bn | 5.4% |
Key ratios for the general insurance industry:
| June 2020 | June 2021 | Change (annual) |
|---|---|---|---|
Net loss ratio | 71% | 71% | Unchanged |
Return on net assets | 3.3% | 3.4% | +0.1 percentage points |
Prescribed capital amount coverage ratio | 1.68x | 1.71x | +0.03x |
The Quarterly General Insurance Institution-level Statistics publication contains individual insurer information about financial performance, financial position, capital adequacy and key ratios. The quarterly performance statistics of insurers may be impacted by factors outside of their control, such as natural catastrophe events, as well as those driven by their internal processes, such as the timing of actuarial valuations. Users should take these factors into account when interpreting the statistics.
Copies of the 30 June 2021 quarterly publications are available on APRA’s website at: Quarterly general insurance statistics.
Media enquiries
Contact APRA Media Unit, on +61 2 9210 3636
All other enquiries
For more information contact APRA on 1300 558 849.
The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, mutuals, general insurance and reinsurance companies, life insurance, private health insurers, friendly societies, and most members of the superannuation industry. APRA currently supervises institutions holding around $9 trillion in assets for Australian depositors, policyholders and superannuation fund members.