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 deputy chief economist Diana Mousina break down the spike in inflation numbers and what it means for the possibility of a rate cut as we move into the new year.
In this episode of Relative Return Insider, host Keith Ford and AMP economist My Bui explore Prime Minister Anthony Albanese’s trip to the US and the critical minerals deal stemming from his meeting with President Donald Trump.
In this episode of Relative Return Insider, host Keith Ford and AMP chief economist Shane Oliver unpack the latest unemployment numbers and what they mean for a rate cut, as well as how the latest flare-up in the ongoing US–China trade dispute has highlighted the remaining disparity between gold and bitcoin.
In this episode of Relative Return Insider, host Keith Ford and AMP chief economist Shane Oliver take a look at the unfolding impacts and potential economic ramifications of the US government shutdown and the surge in gold and bitcoin prices.
