The householders line’s improved results have not altered home insurers’ long-term cost challenges, including from extreme weather perils, the industry peak body says.

The latest prudential data, released on Friday, shows the closely watched line made an underwriting gain of $713 million in the June quarter, up from $538 million a year earlier and a $191 million loss in the preceding period.

An Insurance Council of Australia spokesperson said: “It is welcome that household insurance lines have returned to profitability after being unprofitable in the March quarter.

“[The] data … shows insurer profits continue to improve based on lower levels of extreme weather claims and improving investment results. However, the longer-term trends haven’t changed.” 

The spokesperson says Swiss Re research shows global natural catastrophe losses are growing 5%-7% annually, and insurer profits consistently trail government insurance tax hauls, with states collecting more than $8.9 billion in FY25, compared with $7.2 billion in combined insurer profits. 

“That’s why the Insurance Council is calling for a 10-year, $30 billion Flood Defence Fund, jointly funded by federal and state governments to build the flood defence infrastructure needed to improve safety and affordability.”

Below is a selection of key product lines’ results for the June quarter: 

• Householders: underwriting profit of $713 million; incurred claims of $1.45 billion; and gross written premium of $4.26 billion.
• Domestic motor: underwriting profit $348 million; incurred claims $3.01 billion; GWP $4.64 billion.
• Fire and industrial special risk: underwriting profit $238 million; incurred claims $1.09 billion; GWP $2.82 billion.
• Directors’ and officers’: underwriting profit $61 million; incurred claims $139 million; GWP $269 million.
• Travel: underwriting profit $61 million; incurred claims $205 million; GWP $480 million.  
• Cyber: underwriting loss $1 million; incurred claims $45 million; GWP $60 million.

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