APRA releases general insurance and life insurance statistics for June 2022

The Australian Prudential Regulation Authority (APRA) has released its Quarterly General Insurance Performance Statistics, General Insurance Institution Level Statistics and Life Insurance Performance Statistics publications for the June 2022 quarter. 

The general insurance industry reported a net profit after tax of $924 million and return on net assets of 3.1 per cent for the year ended 30 June 2022. Stronger underwriting results assisted in driving a minor 0.3 per cent profit compared to the previous year. These results were driven by increases in gross earned premium across most classes of business – in particular householders, domestic motor and fire and industrial special risks (ISR).  

Gross incurred claims costs were 6.6 per cent higher in the June quarter compared to the previous year, primarily due to weather events in New South Wales and south-east Queensland during the March quarter. Significant increases in gross incurred claims were reported in the householders, reinsurance, domestic and commercial motor classes of business. 

The industry PCA coverage ratio decreased slightly during the June quarter to 1.69x, a decrease compared to the ratio of 1.70x reported for the same period last year. 

The life insurance industry reported a net profit of $0.5 billion and return on net assets of 1.9 per cent, a decrease in comparison to the prior year’s results. 

The Quarterly General Insurance Institution-level Statistics publication contains individual insurer information about financial performance, financial position, capital adequacy, and key ratios. The quarterly performance statistics of insurers may be impacted by factors outside of their control, such as natural catastrophe events, as well as those driven by their internal processes, such as the timing of actuarial valuations. Users should take these factors into account when interpreting the statistics. 

Copies of the June 2022 quarterly publications are available on APRA’s website at www.apra.gov.au/statistics.