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 2019 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.
The industry underwriting result was negatively impacted by claims costs from the Sydney hailstorm and Townsville flood events, and a strengthening of claims reserves in professional indemnity and mortgage classes. This was largely offset by a significant increase in investment income due to unrealised gains on insurers’ fixed interest investments which resulted from falling bond yields.
Key performance statistics for the general insurance industry in the year ended 31 March 2019:
| March 2018 | March 2019 | Change | |
|---|---|---|---|
| Net earned premium | $32.5 billion | $34.5 billion | +6.4% |
| Net incurred claims expense | $20.2 billion | $23.2 billion | +14.9% |
| Underwriting result | $4.2 billion | $2.8 billion | -32.4% |
| Investment income | $2.2 billion | $3.1 billion | +42.2% |
| Net profit after tax | $3.7 billion | $3.6 billion | -4.7% |
Key ratios for the general insurance industry in the year ended 31 March 2019:
| March 2018 | March 2019 | Change | |
|---|---|---|---|
| Net loss ratio | 62% | 67% | +5 Percentage Point |
| Return on net assets | 13.6% | 13.1% | -0.5 Percentage Point |
| Prescribed capital amount coverage ratio | 1.77x | 1.76x | -0.01x |
The Quarterly General Insurance Institution-level Statistics publications contain 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 31 March 2019 quarterly general insurance publications are available on the APRA website.
/Public Release. View in full here.
