The Australian Prudential Regulation Authority (APRA) today released its Quarterly General Insurance Performance Statistics and Quarterly General Insurance Institution Level Statistics publications for the September 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 $944 million and return on net assets of 3.2 per cent during the year ended 30 September 2021. The result was supported by improved underwriting results but investment income continues to be subdued.
The industry PCA coverage ratio decreased slightly in the year ended 30 September 2021 to 1.72x, down from the ratio of 1.74x reported for the same period last year.
Key performance statistics for the general insurance industry in the year ended 30 September:
September 2020 | September 2021 | Change (annual) | |
|---|---|---|---|
Gross claims expense | $43.2bn | $42.8bn | -0.9% |
Underwriting result | $1.6bn | $1.9bn | 20.0% |
Investment income | $1.2bn | $1.2bn | -0.7% |
Net profit after tax | $0.90bn | $0.94bn | 4.5% |
Key ratios for the general insurance industry:
September 2020 | September 2021 | Change (annual) | |
|---|---|---|---|
Net loss ratio | 70% | 71% | +1 percentage point |
Return on net assets | 3.2% | 3.2% | unchanged |
Prescribed capital amount coverage ratio | 1.74x | 1.72x | -0.02x |
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 September 2021 quarterly publications are available on APRA’s website at: .
