Risk products returned a net profit after tax of $872 million, for the year ending 31 March 2023, APRA statistic show.
However, the authority’s latest Quarterly Life Insurance Performance Statistics state that individual lump sum ($238.4 million) and individual disability income insurance business ($523.9 million) reported weaker profits than the previous year.
APRA says this is “…largely as a result of an increase in net policy expenses for individual lump sum business and lower reserve releases for individual DII business.” (Also see: Increase in Insurance Profits Largely Driven by IP.)
In comparison to 2023, the following APRA table shows that for the 31 March 2022 year individual lump sum and individual DII profits were $430.5 million and $713.2 million respectively.
The authority notes that group lump sum and group disability income insurance business reported an improvement in performance in comparison to the prior year “…which was in large part due to higher investment revenue for group lump sum business and reserve releases for group DII business.”
Overall the life insurance industry reported a net profit after tax of $1 billion and a return on net assets of 3.8%, which APRA notes was slightly below the results from the previous year ($1.1 billion).
