Big banks dominate life
Industry consolidation has had a fundamental impact on the Australian life insurance sector, according to new analysis published by Credit Suisse.
The Credit Suisse analysis stated that as a result of industry consolidation in recent years, the top 10 largest life insurance providers in Australia currently take up more than 95 per cent of annual in-force premiums.
What is more, the analysis suggested that this narrow focus of control would be strengthened in the event of the further consolidation that would flow from National Australia Bank taking AXA Asia Pacific.
It said the market continued to be dominated by the larger banking groups, with the four major banks, Commonwealth, NAB, ANZ and Westpac, controlling around 50 per cent of the market.
It said the acquisition of Aviva by NAB and ING by ANZ had cemented this reality.
The analysis said following the demerger of the Tower Group, Tower Australia had become the only listed financial institution with a pure exposure to the Australian life insurance industry.
AUTHOR
Mike Taylor
Recommended for you
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
