Life insurers’ total revenue declined to $7.7 billion over the March quarter, according to APRA figures.
This is in comparison to December 2016 quarter revenue of $8.6 billion, APRA’s Quarterly Life Insurance Performance Statistics report revealed.
“The outcome mainly reflects a decline in net policy revenue, which fell from $4.5 billion in the December quarter 2016 to $2.6 billion in the March quarter 2017,” the report said.
Total revenue for the year ending 31 March 2017 was $37.9 billion, 146 per cent higher than in the previous 12 months.
Total revenue over the year mainly comprised of investment revenue of $19 billion and net policy revenue of $15.5 billion.
Net profit after tax was $394 million in the March quarter 2017, with individual lump sum risk products contributing $255 million, group lump sum risk products contributing $63 million and group disability income insurance contributing $96 million.
But individual income insurance products recorded a loss of $20 million over the March quarter.
In the year ending 31 March 2017, net profit after tax was $688 million with individual lump sum risk products contributing $771 million, group lump sum risk products contributing $265 million and group disability income insurance contributing $79 million.
However, individual disability income insurance recorded a loss of $427 million over the year.