Total life insurance revenue declined by 13 per cent in the December quarter of 2016, according to APRA figures.
APRA’s Quarterly Life Insurance Performance Statistics report revealed life insurers’ total revenue was $8.6 billion in the September quarter, compared with the September quarter revenue of $9.9 billion.
“The outcome mainly reflects a decline in investment revenue, which fell from $4.8 billion in the September quarter 2016 to $2.7 billion in the December quarter 2016,” the report said.
For the full year ending 31 December, total revenue was $32.5 billion, 2.8 per cent lower than in the previous 12 months.
Total revenue mainly comprised of new policy revenue of $16.8 billion and investment revenue of $12.4 billion.
Across risk products, there was a net loss after tax of $136 million over the December quarter.
The loss figure is mainly due to the performance of individual disability income insurance products, which recorded a $209 million loss.
Individual lump sum risk products contributed a $29 million profit, group lump sum risk products made a $17 million profit and group disability income insurance produced a $27 million profit.
“In the year ending 31 December 2016, net profit after tax was $687 million with individual lump sum risk products contributing $917 million and group lump sum risk products contributing $330 million,” the report said.