Australia’s life insurance industry is showing signs of recovery from the economic impact of the COVID-19 pandemic, according to new data from the Australian Prudential Regulation Authority (APRA).
Figures from APRA found that the net profit after tax for the industry was $1.0 billion for the year ended March 2021, a significant improvement from the previous year, which APRA credited to “improved investment market performance.”
Broken down, total revenue for the industry for the 12 months ended March 2021 was $22.2 billion, up 14.2% from the $19.5 billion posted in the year ended March 2020.
Meanwhile, total expenses during the year ended March 2021 decreased 9.3% to $20.4 billion from the $22.4 billion in the previous year.
Data from APRA also revealed that risk products posted a combined net loss after tax of $165.7 million.
In particular, individual disability income insurance (also known as income protection insurance) reported a loss of $331.2 million during the year, which is a $1.1 billion improvement in comparison to the previous year’s result.