Life insurers’ profits down
Poor performance of group products is continuing to impact life insurers' profits, the Australian Prudential Regulation Authority's Quarterly Report reveals.
The report found that annual post-tax profits had fallen 11.8 per cent in the year to 30 June 2014 ($2.3 billion), compared with the same period in 2013 ($2.6 billion).
APRA figures showed that group risk products created a net after tax loss of $16 million, with revenue of $1.3 billion gained from the products nullified by expenses of the same amount.
While profits fell across the sector by $300 million over the last year, life insurers' revenue increased to $45.8 billion in 2014, from $45 billion 2013, total expense increased by 1.2 billion over the 12 months to 30 June 2014.
Operating costs also contributed to the fall in profits, going up from $7.4 billion for the year to 30 June 2013 to $8.1 billion this year.
AUTHOR
Nicholas O'Donoghue
Recommended for you
In this episode of Relative Return Insider, host Keith Ford and AMP chief economist Shane Oliver unpack the RBA’s decision to keep the cash rate on hold in the face of rising inflation and whether the governor’s hawkish tone is a sign of things to come.
In this episode of Relative Return Insider, host Keith Ford and AMP chief economist Shane Oliver discuss the September quarter GDP figures, which show Australia’s economy regaining momentum.
In this new episode of The Manager Mix, host Laura Dew speaks to Haley Devine, head of wealth management at MaxCap Group, to delve into private credit and commercial real estate.
In this new episode of The Manager Mix, host Laura Dew speaks to Benjamin Leung, head of systematic investments at Macquarie Asset Management, to understand the use of systematic investments.
