Life sector remains strong
The life insurance remains one of the more buoyant sectors of the financial services industry, according to the latest data released by the Australian Prudential Regulation Authority (APRA).
The APRA data for the 12 months to 31 December, last year, revealed net profit after tax was $3 billion — an increase of 15.2 per cent, albeit that the December quarter data revealed a 7.9 per cent decline when compared to the same period in 2011.
The APRA analysis said total revenue mainly comprised investment revenue of $26.8 billion.
It said that total assets were $247.3 billion, and that of total assets $115.8 billion were invested in equities, $86 billion in debt securities, $16.5 billion in investment properties and $17.4 billion in cash and deposits.
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The Federal Court has dismissed a conflicted remuneration case brought by ASIC against the director of life insurance distributor Freedom Group, where Bali holidays and Vespa purchases were among sales incentives.
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
