Life insurers back in black
The Australian life insurance industry has returned to profitability across all its segments, according to the latest data from the Australian Prudential Regulation Authority (APRA) but group insurance remains problematic.
The data covering the year ended 30 September, showed that net profit for the life insurance sector of $1,4 billion and a return on net assets of 5.2% which the regulator noted was a significant improvement on the previous year.
It said the result was primarily driven by an increase in investment revenue.
“Notable improvements were experienced within risk products, with all four products returning an improved result for the 12 months ended September 2021 in comparison to the previous year’s result,” APRA said.
“Individual Lump Sum returned a profit of $427.0m and Individual Disability Income Insurance recorded a profit of $124.0m, a return to profitability following a substantial loss recorded in the prior year.”
“Although Group products reported losses, they were at significantly lower levels in comparison to the previous year with Group LS and Group DII making losses of $97.5m and $14.4m respectively.”