The life insurance industry has made a significant improvement over the year to March, 2021, as the industry made a net profit after tax of $1 billion and a return on net assets of 4%, according to Australian Prudential Regulation Authority (APRA) statistics.
APRA’s latest quarterly life insurance statistics found the industry was gradually recovering from the economic impacts associated with the COVID-19 pandemic, and its $1 billion profit was a significant improvement from the previous year.
However, for the 12 months to March, 2021, risk products reported a combined net loss after tax of $165.7 million.
Individual disability income insurance (IDII) continued to post losses, with a loss of $331.2 million during the year. But this was a $1.1 billion improvement from the previous year’s result.
Group lump sum posted a loss of $91.8 million and group disability income insurance (group DII) posts a loss of $58.3 million. Individual lump sum was the only product to post a profit of $316.5 million.
“For the March quarter, the industry made a modest profit of $159.1 million, which was primarily driven by the favourable performance of the individual and group DII business,” APRA said.
“These were partially offset by the fall in investment revenue as the equity/bond market did not perform as strongly as during the December quarter.”