General insurance statistics for June 2016

The Australian Prudential Regulation Authority (APRA) has recently released its Quarterly General Insurance Performance Statistics publication for the June quarter 2016.

The Quarterly General Insurance Performance Statistics publication provides industry aggregate summaries of financial performance, financial position, capital adequacy and key ratios. The publication also includes detailed statistics at a class of business level, a breakdown of operating income and expenses, and more granular solvency information.

Key performance statistics for the general insurance industry in the year ended 30 June 2016:

June 2015 June 2016 Change
Net earned premium $31.9 billion $30.2 billion -5.1%
Net incurred claims $22.0 billion $20.0 billion -8.9%
Underwriting result $1.6 billion $2.4 billion +51.2%
Investment income $3.2 billion $2.9 billion -9.2%
Net profit after tax $2.6 billion $3.0 billion +15.3%

Key ratios for the general insurance industry in the year ended 30 June 2016:

June 2015 June 2016 Change
Net loss ratio 69% 66% -3pp
Return on net assets 9.3% 10.8% +1.5pp
Prescribed capital amount coverage ratio 1.74x 1.72x -0.02x

Copies of the June 2016 Quarterly General Insurance Performance Statistics publication are available on APRA’s website.