APRA releases general insurance statistics for the June 2023 quarter
APRA has released its quarterly general insurance performance statistics and quarterly general insurance institution-level statistics for the June 2023 quarter.
The Quarterly General Insurance Performance Statistics publication provides aggregate summaries of financial performance, financial position, capital adequacy and key ratios for the general insurance industry. The publication also includes detailed statistics at a class-of-business level, a breakdown of operating income and expenses, and more granular solvency information.
The industry reported a net profit after tax of $4.6 billion and a return on net assets of 14% for year ending June 2023. This was mostly driven by the sharp recovery of investment returns. Underwriting results remained relatively strong, driven by insurers raising premiums in response to recent higher claims costs. Gross incurred claims decreased slightly, due to lower claims in the Householder/Houseowner and Fire/ISR lines of business – both of which saw unusually high peaks in the prior year due to the 2022 south-east QLD/NSW flood event. The aggregate prescribed capital amount (PCA) coverage ratio for the industry increased to 1.74x on 30 June 2023.
Key performance statistics for the general insurance industry in the year ending 30 June:
| June 2022 ($bn) | June 2023 ($bn) | Change (annual) |
Gross earned premium | $60.4 | $66.0 | 9.3% |
Gross claims expense | $45.2 | $44.1 | -2.3% |
Underwriting result | $6.1 | $5.7 | -6.3% |
Investment income | -$2.8 | $3.0 | - |
Net profit after tax | $0.9 | $4.6 | 408.2% |
Key ratios for the general insurance industry:
| June 2022 | June 2023 | Change (annual) |
Net loss ratio | 62% | 65% | 3 pp |
Return on net assets | 3.0% | 14.2% | 11.2 pp |
Prescribed capital amount coverage ratio | 1.66x | 1.74x | 0.08x |
You can read the detailed quarterly statistics for the June 2023 quarter at APRA’s website.