Super boosts group life insurance
The life insurance sector remains one of the healthier sectors of the financial services industry, boosted by superannuation, the latest Australian Prudential Regulation Authority (APRA) data showed.
APRA's Life Insurance Supplementary Statistical Tables 2013 showed net profit after tax stood at $2.7 billion, down from $3 billion last year, with superannuation group businesses contributing $1.5 billion.
Profit margins from in-force business were the largest contributor to operating profit at $2 billion for the year ending 31 December 2013.
The superannuation business made up $920 million, and ordinary business made up $1.1 billion.
Data in asset allocation showed $138.6 billion was in non-cash investments. Out of this $102 billion was in equities, $26.7 billion was in debt securities, $10 billion was in property, and $9.2 billion was in cash.
Net policy liabilities stood at $226 billion. Superannuation made up a large chunk, standing at $210.4 billion, compared to only $15.6 billion in ordinary business.
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