The Australian Prudential Regulation Authority (APRA) has released its private health insurance (PHI) statistics for the first quarter of 2023 (Q1 2023).
APRA's PHI publications provide industry aggregate summaries of key financial and membership statistics for the Australian PHI industry.
For year ending March 31, 2023, the PHI industry reported a decrease in net profit after tax of 19.6% to $1.6 billion. Gross and net margins also dropped compared to the previous year.
Premium revenue for the same period increased by 2.6% through rising membership and premium increases. Meanwhile, claims costs increased by 4.9%, reflecting higher levels of utilisation of services.
Investment income also increased to $237 million from $207.9 million in the previous year. The increase was mainly driven by realised gains on interest-bearing investments.
Key performance metrics for the PHI industry in the year March 31, 2023:
|
|
March 2022 ($bn) |
March 2023 ($bn) |
Change |
|
Premium revenue |
$26.6 |
$27.3 |
2.6% |
|
Fund benefits (claims) |
$21.6 |
$22.6 |
4.9% |
|
Gross margin |
18.8% |
17.0% |
-1.8pp |
|
Net margin |
9.2% |
6.6% |
-2.6pp |
|
Net investment income |
$207.9 m |
$237.0 m |
14.0% |
|
Net profit after tax |
$2.0 |
$1.6 |
-19.6% |
For the year ended March 31, 2023, hospital treatment membership increased by 2.2% (or 257,797 persons).
Membership in the 50+ age group increased by 2.3% (108,820 persons), while membership among the younger population (insured persons aged 20 to 49) increased by 2.5% (103,830 persons).
APRA also released its latest general insurance institutional-level statistics.
