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 2022 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 $924 million and a return on net assets of 3.1 per cent during the year ended 30 June 2022. The minor increase in net profit was driven by a stronger underwriting result, in part reflecting the impact of premium increases across certain classes of business. Gross claims expenses were also higher as a result of the New South Wales and south east Queensland floods in the March quarter. The industry recorded an investment loss of $2.8 billion which was driven by unrealised losses on interest-bearing investments due to increases in bond yields during the March and June quarters.
The industry prescribed capital amount coverage ratio decreased slightly in the year ended 30 June 2022 to 1.69x, down from the ratio of 1.70x reported for the same period last year.
Key performance statistics for the general insurance industry in the year ended 30 June:
June 2021 | June 2022 | Change (annual) | |
|---|---|---|---|
Gross earned premium | $54.3bn | $60.4bn | 11.4% |
Gross claims expense | $42.4bn | $45.2bn | 6.6% |
Underwriting result | $1.5bn | $6.3bn | 328.4% |
Investment income | $1.6bn | $-2.8bn | – |
Net profit after tax | $0.9bn | $0.9bn | 0.3% |
Key ratios for the general insurance industry:
June 2021 | June 2022 | Change (annual) | |
|---|---|---|---|
Net loss ratio | 72% | 62% | -10 percentage points |
Return on net assets | 3.2% | 3.1% | -0.1 percentage points |
Prescribed capital amount coverage ratio | 1.70x | 1.69x | -0.01x |
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 2022 quarterly publications are available on APRA’s website at: .
