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APRA reveals friendly societies’ performance

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Friendly societies earned $18.3 million in direct life insurance premium in the year to June 30, according to Australian Prudential Regulation Authority data. 

This was offset by $5.7 million of death and disability claims and $162,000 of policies maturing. Policy surrenders for the year were $594,000.

Net policy premium totalled $735,303, while net policy payments were $856,659.

Friendly societies paid $3.4 million in upfront commissions and $12.2 million of trails.

The figures include commissions paid on investment products and home loans offered by some societies.  

The largest friendly society offering life insurance, NobleOak, reported a $7 million after-tax profit for the year. Net policy revenue for the direct insurer was $4.4 million, while total revenue was $34.9 million.

Austock Life reported a $1.3 million after-tax profit on total revenue of $19.9 million.

The other strong performer was Lifeplan, part of Australian Unity, with an after-tax profit of $2.8 million on total revenue of $109 million.