Insurance industry weathers the storm
John Trowbridge
The Australian Prudential Regulation Authority (APRA) has reported strong growth for the insurance industry, which recorded a $1.2 billion gross premium revenue increase in a year.
The industry’s total assets increased to $88 billion, up almost $6 billion from June, 2006, and gross incurred claims for the year ending June 30, 2007, were up around 13 per cent to $20 billion.
Commenting on industry performance, APRA member John Trowbridge said it was financially strong.
“The industry suffered an increase in the incidence of claims due to some severe weather events over the 18 months to June 30, 2007. However, the minor impact on both the underwriting result and after-tax profit is a reflection of the reinsurance arrangements within the industry,” he said.
Direct insurers reported gross premium revenue of $28 billion, making up 95.2 per cent of the total, while reinsurers accounted for the remaining 4.8 per cent or $1.4 billion.
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