APRA releases life insurance statistics for March 2021
The Australian Prudential Regulation Authority (APRA) today released its Quarterly Life Insurance Performance Statistics publication for the March 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 31 March:
| Year ended Mar‑20 ($bn) | Year ended Mar‑21($bn) | Yearly Change |
|---|---|---|---|
Net policy revenue | 15.6 | 14.1 | -9.5% |
Investment revenue | 1.8 | 7.1 | 299.5% |
Total revenue | 19.5 | 22.2 | 14.2% |
Net policy expenses | 10.6 | 9.5 | -10.6% |
Operating expenses | 8.3 | 6.9 | -16.8% |
Effective movement in net policy liabilities | 3.2 | 4.0 | 24.1% |
Total expenses | 22.4 | 20.4 | -9.3% |
Net profit after tax | -1.8 | 1.0 | |
Total assets | 184.5 | 129.5 | -29.8% |
Key performance statistics for the life insurance industry for the quarter ended 31 March:
| Dec 2020 | Mar 2021 | Quarterly |
|---|---|---|---|
Net policy revenue | 3.5 | 3.4 | -3.3% |
Investment revenue | 2.5 | -1.0 | |
Total revenue | 6.2 | 2.6 | -57.4% |
Net policy expenses | 2.4 | 2.2 | -6.4% |
Operating expenses | 1.7 | 1.6 | -8.0% |
Effective movement in net policy liabilities | 1.1 | -1.4 |
|
Total expenses | 5.3 | 2.4 | -53.8% |
Net profit after tax | 0.4 | 0.2 | -62.7% |
Total assets | 130.2 | 129.5 | -0.6% |
The life insurance industry is gradually recovering from the economic impacts associated with the pandemic. The net profit after tax for the industry was $1.0 billion for the year ended March 2021, a significant improvement from the previous year primarily owing to the improved investment market performance.
For the 12 months ended March 2021, risk products reported a combined net loss after tax of $164.7 million. In particular, Individual Disability Income Insurance (also known as Income Protection Insurance) reported a loss of $331.2 million during the year, which is a $1.1 billion improvement in comparison to the previous year’s result. Results for Group Lump Sum and Group Disability Income Insurance have also improved this year.
Net profit after tax by product for the life insurance industry for the year ended 31 March:
Risk product | Year ended | Year ended | Mar 2021 |
|---|---|---|---|
Individual lump sum | 386.9 | 316.5 | -165.7 |
Individual disability income insurance | -1,398.1 | -331.2 | 264.8 |
Group lump sum | -370.8 | -91.8 | 21.2 |
Group disability income insurance | -242.1 | -58.3 | 56.2 |
Total | -1,624.1 | -164.7 | 176.6 |
Key ratios for the life insurance industry for the year ended 31 March:
| Year ended Mar 2020 | Year ended Mar 2021 | Yearly Change | Dec 2020 Quarter | Mar 2021 Quarter | Quarterly change |
|---|---|---|---|---|---|---|
Return on net assets | -7.3% | 4.0% | 11.2 percentage points | 6.5% | 2.4% | -4.1 percentage points |
Prescribed capital amount coverage ratio | 1.76x | 1.85x | 0.09x | 1.79x | 1.85x | 0.05x |
The March 2021 Quarterly Life Insurance Performance Statistics publication is available on APRA’s website at: Quarterly life insurance performance statistics.
For more information
Email dataanalytics@apra.gov.au or mail to
Manager, External Data Reporting
Australian Prudential Regulation Authority
GPO Box 9836, Sydney NSW 2001Looking for discontinued publications?
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