The Australian Prudential Regulation Authority (APRA) has released its quarterly private health insurance (PHI) publications for the June 2023 quarter.
The quarterly private health insurance publications provide summaries of key aggregate financial and membership statistics for the PHI industry.
The PHI industry reported a net profit after tax of $2.2 billion for the year ending 30 June 2023. The main driver behind the result was a recovery in investment income to $702.4 million for the year, which reflected increases in the value of equity portfolios and higher interest income.
Premium revenue in the year ending 30 June 2023 increased by 3.3 per cent predominantly due to membership growth. Claims costs increased over the period by 2.4 per cent, which reflected higher levels of utilisation of services.
Hospital treatment membership increased by 2.3 per cent, or 270,160 persons in the year ending June 2023. Membership in the 50+ age group increased by 2.2 per cent, or 102,412 persons, and membership among the younger population (insured persons aged 20 to 49) increased by 2.9 per cent, or 120,966 persons.
Key performance metrics for the PHI industry in the year ending 30 June:
June 2022 ($bn) | June 2023 ($bn) | Change (annual) | |
Premium revenue | $26.6 | $27.5 | 3.3% |
Fund benefits (claims) | $22.1 | $22.6 | 2.4% |
Gross margin | 16.9% | 17.6% | 0.7pp |
Net margin | 7.0% | 6.8% | -0.2pp |
Net investment income | -$292.5 m | $702.4m | – |
Net profit after tax | $1.0 | $2.2 | 109.8% |
The June 2023 quarterly private health insurance publications are available on APRA’s website at: .
