Revenue down 22 per cent for life insurers
Life insurers’ total revenue decreased by 22 per cent over the September quarter – mainly reflecting a decline in investment revenue, according to APRA data.
APRA’s Quarterly Life Insurance Performance Statistics report found life insurers’ total revenue was $9.9 billion in the September quarter, down 22 per cent compared to June quarter revenue of $11.8 billion.
“The outcome mainly reflects a decline in investment revenue, which fell from $7.1 billion in the June quarter 2016 to $4.8 billion in the September quarter 2016,” the report said.
For the year ending 30 September, total revenue is at its lowest level since 2011 at $36 billion, 1.5 per cent lower than the previous 12 months.
Total revenue was mainly comprised of investment revenue of $16.9 billion and net policy revenue of $16.3 billion.
In terms of risk products, net profit after tax was $148 million for the September quarter.
Individual lump sum risk products contributed $194 million profit over the quarter, and group lump sum risk products contributed $13 million profit.
However, group disability income insurance contributed a $14 million loss in the September quarter, while individual disability income insurance products contributed a $45 million loss.
“In the year ending 30 September 2016, net profit after tax was $1.1 billion with individual lump sum risk products contributing $1.1 billion and other risk products offsetting each other’s profit,” the report said.
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