The Australian Prudential Regulation Authority (APRA) has released its quarterly private health insurance (PHI) publications for the March 2023 quarter.
The quarterly private health insurance publications provide industry aggregate summaries of key financial and membership statistics for the PHI industry.
The PHI industry reported a decrease in net profit after tax for the year ending 31 March 2023 of 19.6 per cent to $1.6 billion. Gross and net margins both fell in comparison to the prior year.
Premium revenue in the year ending 31 March 2023 increased by 2.6 per cent through a combination of rising membership and premium increases. Claims costs increased over the period by 4.9 per cent, which reflected higher levels of utilisation of services.
Investment income increased to $237 million in the year ending 31 March 2023 from $207.9 million in the previous year. The increase is primarily driven by realised gains on interest-bearing investments.
Hospital treatment membership increased by 2.2 per cent, or 257,797 persons in the year ending March 2023. Membership in the 50+ age group increased by 2.3 per cent, or 108,820 persons, and membership among the younger population (insured persons aged 20 to 49) increased by 2.5 per cent, or 103,830 persons.
Key performance metrics for the PHI industry in the year ending 31 March:
March 2022 ($bn) | March 2023 ($bn) | Change (annual) | |
Premium revenue | $26.6 | $27.3 | 2.6% |
Fund benefits (claims) | $21.6 | $22.6 | 4.9% |
Gross margin | 18.8% | 17.0% | -1.8pp |
Net margin | 9.2% | 6.6% | -2.6pp |
Net investment income | $207.9 m | $237.0 m | 14.0% |
Net profit after tax | $2.0 | $1.6 | -19.6% |
The March 2023 quarterly private health insurance publications are available on APRA’s website at: .
