The insurance industry has posted a 4% increase in profits to $5.01bn in the 12 months to June 30; while gross written premiums dropped 1% to $4.27bn, largely due to the one-off impact of regulatory changes to the compulsory third-party in NSW, according to KPMG Australia’s annual General Insurance Industry Review.
“While the industry’s headline profit-growth figure appears modest, it must be remembered that this was on the back of an exceptionally strong performance last year,” said Scott Guse, KPMG insurance partner. “To maintain that level rather than falling back is actually a very creditable showing. Favourable net perils experience and higher-than-expected reserve releases contributed to this result, which reinforces our view that the sector is on a cyclical upswing.”
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