APRA’s Quarterly Life Insurance Performance Statistics report revealed life insurers’ total revenue was $8.6 billion in the September quarter, compared with the September quarter revenue of $9.9 billion.
“The outcome mainly reflects a decline in investment revenue, which fell from $4.8 billion in the September quarter 2016 to $2.7 billion in the December quarter 2016,” the report said.
For the full year ending 31 December, total revenue was $32.5 billion, 2.8 per cent lower than in the previous 12 months.
Total revenue mainly comprised of new policy revenue of $16.8 billion and investment revenue of $12.4 billion.
Across risk products, there was a net loss after tax of $136 million over the December quarter.
The loss figure is mainly due to the performance of individual disability income insurance products, which recorded a $209 million loss.
Individual lump sum risk products contributed a $29 million profit, group lump sum risk products made a $17 million profit and group disability income insurance produced a $27 million profit.
“In the year ending 31 December 2016, net profit after tax was $687 million with individual lump sum risk products contributing $917 million and group lump sum risk products contributing $330 million,” the report said.
