Profitability within the life insurance industry is improving, APRA statistics for the 12 months to March 2021 show, with the IP sector reporting a $1.1 billion improvement in comparison to the previous year’s results.
APRA’s Quarterly Life Insurance Performance Statistics publication for the March 2021 quarter shows the life insurance market “gradually recovering” from the economic impacts associated with the pandemic.
The authority says in a statement that the net profit after tax for the industry was $1.0 billion for the year ended March 2021, representing “..a significant improvement from the previous year primarily owing to the improved investment market performance.”
An APRA table shows that for the year ending March 31, 2021, risk products reported a combined net loss after tax of $164.7 million.
“In particular, Individual Disability Income Insurance (also known as Income Protection Insurance) reported a loss of $331.2 million during the year, which is a $1.1 billion improvement in comparison to the previous year’s result,” the statement says.
Results for Group Lump Sum and Group Disability Income Insurance have also improved this year.
Click here for the March 2021 Quarterly Life Insurance Performance Statistics publication