APRA releases general insurance statistics for September 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 September 2022 quarter.
The general insurance industry reported a net profit after tax of $960 million and return on net assets of 3.1 per cent for the year ended 30 September 2022. Stronger underwriting results, offset by large investment losses totalling $3 billion, resulted in a slight decrease compared to the previous year. Improving underwriting results were driven by increases in gross earned premium across all classes of businesses.
Gross incurred claims costs increased to $46.3 billion for the year ended 30 September 2022, and were 8.1 per cent higher compared to the previous year. This was largely due to weather events throughout the year, in particular the New South Wales and south-east Queensland floods 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 increased to 1.74x, a slight increase compared to the ratio of 1.72x reported for the same period last year.
The life insurance industry reported a net profit of $0.2 billion and return on net assets of 0.7 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 September 2022 quarterly publications are available on APRA’s website at www.apra.gov.au/statistics.