Home / Life Insurance / Life industry makes $348 million profit from super
22 June 2020
The life insurance industry made about $348 million in operating profit after tax from superannuation and $187 million from ordinary business for financial years ended in the 12 months to December last year.
The figures are contained in the Australian Prudential Regulation Authority’s (APRA) supplementary statistical tables on sources of profit, assets backing policy liabilities and policy liabilities.
Figures from previous financial years were not provided in the report.
Superannuation has about $188 million in new business losses recognised, which is defined as business written at a loss that is not otherwise absorbed in profit margins for existing in-force business. For ordinary business, the losses came to $31 million.
Group disability income has about $5.9 billion in net assets backing policy liabilities, group lump sum risk $3 billion, individual disability income insurance $14.2 billion while individual lump sum risk has a deficit of $4.8 billion.
In a separate report on institution-level data, the five largest life insurers by total investment-linked industry assets for the 12 months to December last year are AMP Life (80.2%), Westpac Life (7.8%), The Colonial Mutual Life Assurance Society (6.5%), OnePath (1.4%) and ClearView Life Assurance (1.3%).
They hold a combined 97.2% share of total investment-linked industry assets.
The five largest insurers by total non-investment linked industry assets are AMP Life (28.4%), Challenger Life (17.1%), The Colonial Mutual Life Assurance Society (5.9%), Munich Re (5.7%) and AIA (5.4%). Their overall share of the assets exceeds 62%.
The financial results of selected life insurers (by alphabetical order) for financial years ended in the 12 months to December last year were: