- New Reinsurer Enters Aussie Market;
- Life Market Posts Profit;
- ANZIIF Awards Top Insurers;
- Few Accountants Seeking Advice License
New Reinsurer Enters Aussie Market
A new reinsurer is set to enter the local market after Pacific Life Re received regulatory approval from the Australian Prudential Regulation Authority (APRA) to commence writing life reinsurance business in Australia.
Pacific Life Re Australia is part of Pacific Life Re, the reinsurance division of the Pacific Life group. Pacific Life Re has existing offices in Europe, Asia and North America. The ultimate parent is Pacific Mutual Holding Company, a US-based mutual life insurance company founded in 1868 with over US$137bn in Company Assets.
“This is a significant milestone as we look to bring additional reinsurance capacity to the Australian life market,” said Andrew Gill, Managing Director of Pacific Life Re Australia. “The Australian market has undergone a fair amount of disruption in the life insurance space over the last few years so we see this as a unique opportunity to bring a fresh approach to supporting Australian insurers.”
Pacific Life Re Division CEO, Dave Howell, added: “This licence represents a further expansion of the global Pacific Life Re brand and proposition. We have recruited a very experienced local management team and are looking forward to partnering with our clients in Australia over the coming years.”
Life Market Posts Profit
The Australian life insurance industry posted a $2.8 billion profit in the 12 months to 30 June 2015, according to the latest figures from the Australian Prudential Regulation Authority (APRA).
The result represents a 27.6% increase on the previous year’s profit. While total revenue for the year was 3.9% lower than in 2014, total expenses were also lower (down 6.3% on the previous period).
For the quarter ending 30 June 2015, the net profit after tax was $773 million, down slightly on the March quarter but up 33.9% on the same quarter in 2014. Individual risk products contributed $261 million to the result, and group risk products achieved a net profit after tax of $23 million.
$7.3 billion was paid in death and disability claims in the 12 months to 30 June 2015, compared to $6.6 billion in the previous year.
ANZIIF Awards Top Insurers
The Australian and New Zealand Institute of Insurance and Finance (ANZIIF) has announced the winners of its 2015 Australian Insurance Industry Awards.
AIA Australia was named Life Insurance Company of the Year. It is the third time AIA Australia has won the award in the last four years.
AIA Australia CEO, Damien Mu, said the group was very pleased to have received the award because it validates AIA’s commitment to continuous improvement and innovation.
BT Financial Group was honoured as the Youth Development Employer of the Year, and BT’s Senior Product Technical Manager, Katherine Ashby, received the inaugural Young Insurance Professional of the Year Award.
Phil Hay, Head of Life Insurance at BT, said: ‘It’s an honour to be recognised as a leading employer for youths. We have a strong business culture centred on sustainability, and this underpins the choices we have made on our human resources initiatives. From the graduate program onwards, we aim to build career paths for the long-term so we can retain our young talent.”
Few Accountants Seeking Advice License
Just 160 limited advice applications have been received from accountants by the Australian Securities and Investments Commission, despite the process being open for the past two years.
From 30 June 2016, accountants who want to provide advice on self-managed superannuation funds will require a limited license, or will need to become an authorised representative of an AFSL.
Since the limited license became available, ASIC has received just 160 applications. Of those, the regulator has granted only 70 licenses.
ASIC warned accountants who do not lodge applications which meet ASIC’s requirements by 1 March 2016 run a significant risk their application will not be assessed before 30 June 2016.
ASIC Deputy Chairman, Peter Kell, said: “There has been adequate time to apply for these licences. After 30 June 2016 any accountant found to be providing unlicensed advice risks regulatory action. Providing unlicensed financial services is a criminal offence.”
