Australian life insurers have recorded a jump in net profit after tax of almost 6 per cent in the year ending June 2016, up from $2.76 billion the previous year, according to APRA statistics.
APRA’s latest life insurance sector figures show life insurers made a collective net profit after tax of $2.92 billion over the past financial year, an increase of 5.7 per cent.
Life insurers posted a collective $60.7 billion in net policy payments in the 12 months to June 2016, an increase of 1.8 per cent on the previous corresponding period.
However, they also recorded a 7 per cent loss in net premium income from $61 billion in June 2015 to $56.7 billion in 2016.
APRA noted a continuing declining trend among life insurers in the number of policy “surrenders and terminations” or lapses.
Life insurers experienced a collective cost of $457 million over the 12-month period ending June 2016, down from $486 million for the year ending June 2015.