The overall net profit of Australia’s life insurance industry hit $2.6 billion for the year ending 31 March 2015, up from $2 billion in the previous year.
In APRA’s Quarterly Life Insurance Performance Statistics report, the regulator found the industry’s profit grew 29.7 per cent over the year to $2.6 billion.
This was due to an increase in profits during the March 2015 quarter, which grew to $830 million, up 28.9 per cent from the December 2014 quarter figure of $644 million.
“Total revenue was $55.8 billion compared with the previous year's revenue of $42.4 billion. The March 2015 quarter revenue was $20.4 billion compared with the December 2014 quarter revenue of $15.1 billion and the March 2014 quarter revenue of $6.8 billion,” the report said.
The life insurers' risk products produced a total net profit after tax of $331 million for the quarter, with individual risk products contributing $289 million and group risk products contributing $42 million.
“Total revenue was $3.7 billion. Individual risk products contributed $2.3 billion and group risk products contributed $1.4 billion,” the report said.
“Total expenses were $3.3 billion. Individual risk products contributed $1.9 billion and group risk products contributed $1.3 billion.”