APRA has released its general insurance statistics for March 2021

APRA has released its Quarterly General Insurance Performance Statistics and Institution-level Statistics publications for March 2021

Written on 2 June, 2021
Tanaya Das
The Australian Prudential Regulation Authority (APRA) has released its Quarterly General Insurance Performance Statistics and Quarterly General Insurance Institution-level Statistics publications for the March 2021 quarter.
The general insurance industry reported a net profit after tax of $1.1 billion and return on net assets of 3.9 per cent during the year ended 31 March 2021. APRA stated that the result was driven by natural catastrophe claims costs, provisions for business interruption (BI) claims and falls in investment income.

The industry reported a profit of $19m for the March quarter. Gross incurred claims fell significantly as the effects of the provisioning that was undertaken for BI claims in the December quarter was not repeated in the March quarter. However, this was mostly offset by investment losses on interest bearing investments as a result of an increase in bond yields during the quarter.

The Quarterly General Insurance Performance Statistics publication provides industry aggregate summaries of financial performance, financial position, capital adequacy and key ratios. The publication also includes detailed statistics at a class-of-business level, a breakdown of operating income and expenses, and more granular solvency information.

Key performance statistics for the general insurance industry in the year ended 31 March:

  March 2020 March 2021 Change (annual)
Gross claims expense $42.4bn $41.5bn -1.9%
Underwriting result $1.5bn $1.6bn +6.0%
Investment income $2.0bn $1.6bn -20.8%
Net profit after tax $1.5bn $1.1bn -28.3%

Key performance statistics for the general insurance industry in the quarter ended 31 March:

  December  2020 March       2021 Change (quarterly)
Gross claims expense $14.7bn $9.4bn -36.0%
Underwriting result -$1.1bn $657m  
Investment income $504m -$246m  
Net profit after tax -$622m $19m  

Key ratios for the general insurance industry:

  March 2020 March 2021 Change (annual) Change (quarterly)
Net loss ratio 71% 71% Unchanged -17 percentage points
Return on net assets 5.6% 3.9% -1.7 percentage points +8.9 percentage points
Prescribed capital amount coverage ratio 1.66x 1.71x +0.05x +0.01x

Copies of the 31 March 2021 quarterly publications are available on APRA’s website at: Quarterly general insurance statistics.