Life insurance profits are down by more than 10% on last year despite an increase in policy revenue, according to market statistics released this week.
The Australian Prudential Regulation Authority (APRA) Quarterly Life Statistics report found that net profit (after tax) for the year to June 2011 was $2.7 billion. This figure was down 13.9% on the previous year’s profit of $3.2 billion.
Similarly, the June 2011 quarter (achieving $696 million profit) was also down compared to the March 2011 quarter ($771 million).
However, net policy revenue was up for the year ending June 2011, reaching $10 billion (against $9.2 billion in the previous year).
APRA notes that total revenue was mainly sourced from investment revenue, which was down over $3 billion from the previous year, indicating the loss in profit could be attributed in part to fluctuating markets.
