Industry Records 30% Rise in Profit

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The Australian life insurance market has shown positive signs of growth, according to the latest figures from the Australian Prudential Regulation Authority.

For the 12 months to 31 March 2015, net profit after tax was $2.6 billion, a 29.7% increase on the previous year’s result. Quarterly profits were also up, at $830 million, compared with the December 2014 quarter profit of $644 million, and March 2014 quarter profit of $691 million.

Individual risk products contributed $289 million to the quarterly risk products net profit result. Group risk net profit after tax for the quarter was $42 million. Risk product revenue for the period was $3.7 billion, made up of $2.3 billion in individual risk and $1.4 billion in group risk. This was offset by expenses of $3.3 billion, to which individual risk products contributed $1.9 billion and group risk $1.3 billion.

$1.5 billion was paid in acquisition commissions and $2.4 billion in maintenance commissions

Of the net policy expenses incurred during the 12 months to March 2015, $1.5 billion was paid in acquisition commissions and $2.4 billion in maintenance commissions.

Annuity products achieved a total revenue result of $338 million for the quarter ending 31 March 2015. Products with longevity risk contributed $281 million and annuities without longevity risk added $58 million.

The market paid out $1.8 billion in death and disability claims during the March quarter, taking the annual claims paid figure to $7.2 billion (year ending March 2015).

 



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2 COMMENTS

  1. If the industry is doing so well why is it trying to destroy planner revenue with the actions of AMP?

  2. Bob,

    Obviously no one sees the Negative Correlation between the Life Companies and Banks 30% increase while cutting Risk advisers back by more then 50%…….. I would have thought more people would have seen this and commented.

    They should be ashamed as BDM’s ect after selling to us for 3 years they need to reduce commissions for a sustainable Life Insurance industry.

    So basically small Risk only IFA’s have to pay for the Life Companies and share holders Larger Profits in the future. But I’m not surprised, this is the dirty games Bankers play with the people of Australia.

    I have one word for them, Karma.

    The only Australians to avoid the GFC were the Bankers and Insurance Co’s…………

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