Risk Regulatory Update
/Insurer revenue declines by over 50% for first quarter of 2021
The latest APRA statistics for the life insurance industry show total revenue for the sector declined by over half in the first quarter of 2021, however, the pandemic year saw a slight profit.
Key numbers in the report include:
Total revenue for the life insurance industry dropped by 57.4 per cent from $6.2 billion in the 4Q20 to $2.6 billion in 1Q21.
Net policy revenue declined 3.3 per cent from $3.5 billion in the three months to December 2020 to $3.4 billion in the three months to March 2021.
Total revenue increased by 14 per cent year-on-year to $22.2 billion in the 12 months to March 2021.
Net profit after tax increased from a $1.8 billion loss the previous year to $1 billion.
With new income protection restrictions introduced, individual disability income products saw huge improvements but still had a $330 million loss in the 12 months to March 2021, up from $1.4 billion in losses the previous year.
Profits in individual lump-sum products saw a huge drop, from $387 million in the 12 months to March 2020 to $316 million in the 12 months to March 2021.
Risk products saw a combined net loss of $165.7 million for the 12 months to March 2021.
