Quarterly General Insurance Performance Statistics - … … · Quarterly General Insurance...

Quarterly General Insurance Performance

Statistics

June 2017 (released 17 August 2017)

e-mail [email protected]

or write to Manager, Insurance Statistics

Australian Prudential Regulation Authority

GPO Box 9836

Sydney NSW 2001

Forthcoming issues

Copyright

Disclaimer

While APRA endeavours to ensure the quality of this Publication, APRA does not accept any responsibility

for the accuracy, completeness or currency of the material included in this Publication, and will not be

liable for any loss or damage arising out of any use of, or reliance on, this Publication.

This publication will be released according to the timetable published on the APRA website.

Revisions

This edition of the publication contains revisions to previously published statistics. Significant revisions, if

any, are identified and quantified in the ‘Important notice’.

This publication will include revisions to previously published statistics if better source data becomes

available or if compilation errors are uncovered.

APRA regularly analyses past revisions to identify potential improvements to the source data and statistical

compilation techniques, in order to minimise the frequency and scale of any future revisions.

Notation

Amounts are expressed in Australian dollars.

The symbol ' * ' indicates that the data have been masked to maintain confidentiality.

Explanatory notes and glossary

A set of explanatory notes are provided at the end of the publication to assist the reader in understanding

the source of the data. The notice following the contents page also provides details in relation to the

change in the general insurance reporting framework that took effect on 1 January 2013. A glossary to

assist the reader in understanding the definitions of the data in this publication is available at a link on the

Quarterly General Insurance Performance Statistics internet page.

Enquiries

For more information about the statistics in this publication:

© Australian Prudential Regulation Authority (APRA)

This work is licensed under the Creative Commons Attribution 3.0 Australia Licence (CCBY 3.0).

This licence allows you to copy, distribute and adapt this work, provided you attribute the work and do not suggest that APRA endorses you or your work. To view a full copy of the terms of this licence, visit www.creativecommons.org/licenses/by/3.0/au/.

Australian Prudential Regulation Authority 2

mailto:[email protected]?subject=Quarterly%20General%20Insurance%20Performance%20Statistics

Contents

Important notice Important notice 4

Highlights Highlights 5

Key statistics Key statistics 7

All general insurers' statistics

Financial performance Table 1a 10

Financial position Table 1b 11Performance ratios Table 1c 12Investment performance Table 1d 13

Capital adequacy Table 1e 14Underwriting performance by class of business

Houseowners/householders Table 1f 15Domestic motor vehicle Table 1g 16Fire and ISR Table 1h 17Commercial motor vehicle Table 1i 18CTP motor vehicle Table 1j 19Public and product liability Table 1k 20Professional indemnity Table 1l 21Employers' liability Table 1m 22Mortgage Table 1n 23Other direct classes Table 1o 24Proportional reinsurance Table 1p 25Non-proportional reinsurance Table 1q 26

Direct insurers' statistics

Financial performance Table 2a 27Financial position Table 2b 28

Performance ratios Table 2c 29Investment performance Table 2d 30

Capital adequacy Table 2e 31

Reinsurers' statistics

Financial performance Table 3a 32Financial position Table 3b 33

Performance ratios Table 3c 34Investment performance Table 3d 35

Capital adequacy Table 3e 36

Explanatory notes Explanatory notes 37


Important notice

Table and item

Period(s)

impacted* Cause of revision Entity (where applicable)

Previous

figure

($ million)

Revised

figure

($ million)

Table 1f - Non-recurring items that

are part of net claims by class of

business

Mar-17 Resubmitted data N/A -10 -54

Table 1g - Non-reinsurance recoveries

revenue by class of businessDec-16 Resubmitted data N/A 494 431

Table 1h - Non-recurring items that

are part of net claims by class of

business

Mar-17 Resubmitted data N/A 33 -16

Table 1h - Gross incurred claims by

geographic region - New South WalesMar-17 Resubmitted data N/A 351 301

Table 1i - Non-reinsurance recoveries

revenue by class of businessDec-16 Resubmitted data N/A 138 90

Table 1j - Gross incurred claims by

geographic region - New South WalesDec-16 Resubmitted data N/A 153 112

This publication is available in three versions: an Adobe PDF publication for printing (containing data for the

most recent periods), a Microsoft Excel report version (containing additional statistics and a complete time

series since September 2002 of data included in the PDF publication), and a database version (in a Microsoft

Excel file) which contains more additional statistics and can be used for further analysis. This publication

includes data across different reporting frameworks. Further details on additional statistics available in the

database version of the publication and different reporting frameworks is provided in the Explanatory Notes

at the end of this publication.

Revisions

This edition of the Quarterly General Insurance Performance Statistics publication contains revisions to

previously published data. Significant revisions are identified and quantified in the table below. The

following data items were revised by at least 10 per cent and $40 million:


Highlights

Main features

•

•

•

•

There were 104 insurers licensed to conduct general insurance business as at 30 June 2017. Of these, 94 were

direct insurers and 10 were reinsurers.

Net earned premium for the industry in the year ended 30 June 2017 was $31.8 billion ($30.2 billion in the

previous year) (Chart 1). Of this, direct insurers from large groups wrote $21.6 billion (67.9 per cent),

personal lines insurers wrote $4.6 billion (14.3 per cent), commercial lines insurers wrote $3.1 billion (9.7

per cent), lenders' mortgage insurers wrote $0.7 billion (2.2 per cent) and other direct insurers wrote $0.2

billion (0.5 per cent). The remaining $1.7 billion (5.3 per cent) was written by reinsurers.

Gross incurred claims for the industry in the year ended 30 June 2017 was $33.8 billion, up 6.7 per cent

from the previous year ($31.7 billion). The increase in gross incurred claims was mainly due to increases in

gross incurred claims for short-tail property classes of business and inwards reinsurance (chart 2). In both

cases this was largely driven by increased gross incurred claims from catastrophes in the year ended 30

June 2017 compared to the previous year, including Cyclone Debbie.

Net incurred claims for the industry in the year ended 30 June 2017 was $20.4 billion, up 1.6 per cent from

the previous year ($20.0 billion). The increase in industry net incurred claims was less than the increase in

gross incurred claims because of an increase in reinsurance recoveries revenue. Reinsurance recoveries

revenue in the year ended 30 June 2017 was $10.3 billion ($8.8 billion in the previous year).

The net loss ratio for the industry in the year ended 30 June 2017 was 64 per cent, down from 66 per cent

in the previous year (Chart 3).

0

10

20

30

40

2013 2014 2015 2016 2017

$bn

Year ended June

Chart 1: Net earned premium

Reinsurers

Other direct and LMI insurers

Commercial lines insurers

Personal lines insurers

Direct insurers from large groups

Direct insurers from large groupsPersonal lines insurersCommercial lines insurersOther direct and LMI insurersReinsurers

0

10

20

30

40

2013 2014 2015 2016 2017

$bn

Year ended June

Chart 2: Gross incurred claims

Long-tailShort-tail propertyInwards reinsuranceOther direct

0%

20%

40%

60%

80%

100%

Jun2013

Jun2014

Jun2015

Jun2016

Jun2017

Rolling 12 months

Chart 3: Loss ratios

Gross loss ratio

Net loss ratio

0%

20%

40%

60%

80%

100%

Jun2013

Jun2014

Jun2015

Jun2016

Jun2017

Rolling 12 months

Chart 4: Net loss ratios

Long-tail Short-tail property

Inwards reinsurance Other direct


•

•

•

•

•

•

The net loss ratio for the short-tail property classes of business in the year ended 30 June 2017 was 72 per

cent, up from 71 per cent in the previous year. The net loss ratio for the long-tail classes of business in the

year ended 30 June 2017 was 54 per cent, down from 66 per cent in the previous year (Chart 4).

The underwriting expense ratio for the industry in the year ended 30 June 2017 was 25 per cent, down

from 26 per cent in the previous year. Total industry underwriting expenses were $8.0 billion in the year

ended 30 June 2017, unchanged from the previous year.

The industry underwriting result in the year ended 30 June 2017 was a profit of $3.5 billion, compared to a

profit of $2.2 billion in the previous year. The higher underwriting result was mainly related to the

increase in reserve releases across long-tail classes of business.

Investment income for the industry in the year ended 30 June 2017 was $2,420 million, down $536 million

from the previous year ($2,956 million) (Chart 6). The decrease in investment income was primarily related

to unrealised gains/losses from changes in net market value, which was a loss of $712 million in the year

ended 30 June 2017, compared to a loss of $25 million in the previous year.

Total industry net profit after tax in the year ended 30 June 2017 was a profit of $3.1 billion, up from $2.9

billion in the previous year. This represented a return on net assets of 10.8 per cent in the year ended 30

June 2017, up from 10.4 per cent in the previous year (see returns in the glossary) (Chart 7). Industry net

assets were $28.9 billion as at 30 June 2017, an increase of $1.1 billion (4.0 per cent) from the previous

year ($27.8 billion).

The prescribed capital amount coverage ratio for the industry was 1.84 times the prescribed capital

amount as at 30 June 2017, up from 1.73 times as at 30 June 2016. The eligible capital base for the

industry was $29.3 billion as at 30 June 2017, up 3.5 per cent from the previous year ($28.3 billion). The

prescribed capital amount was $15.9 billion as at 30 June 2017, down 3.1 per cent from the previous year

($16.4 billion) (Chart 8).

-2

-1

0

1

2

Jun2013

Jun2014

Jun2015

Jun2016

Jun2017

$bn

Rolling 12 months

Chart 5: Underwriting result

Long-tail Short-tail property

Inwards reinsurance Other direct

0%

5%

10%

15%

0

2

4

6

2013 2014 2015 2016 2017

$bn

Year ended June

Chart 6: Investment returns

Investment income (left)

Return on investments (right)

0%

10%

20%

30%

0

2

4

6

2013 2014 2015 2016 2017

$bn

Year ended June

Chart 7: Profitability

Net profit after tax (left)

Return on net assets (right)

0%

50%

100%

150%

200%

0

10

20

30

40

2013 2014 2015 2016 2017

$bn

As at June

Chart 8: Capital coverage

Capital in excess of PCA (left)

PCA (left)

PCA coverage ratio (right)


Key statistics

Quarter end

Jun 2016 Sep 2016 Dec 2016 Mar 2017 Jun 2017

All general insurers

Net earned premium ($m) 7,889 7,926 8,019 7,961 7,933 30,233 31,840

Gross incurred claims ($m) 8,102 7,336 8,248 11,731 6,523 31,699 33,837

Short-tail property classes ($m) 4,177 3,629 5,347 6,726 3,685 16,689 19,387

Long-tail classes ($m) 1,616 2,120 697 2,145 1,130 7,531 6,092

Mortgage business ($m) 80 88 61 62 89 244 301

Other direct classes ($m) 635 566 573 710 576 2,209 2,425

Inwards reinsurance ($m) 1,593 933 1,569 2,086 1,044 5,025 5,632

Net incurred claims ($m) 5,425 5,110 4,564 6,414 4,282 20,039 20,369

Net loss ratio 69% 64% 57% 81% 54% 66% 64%

Underwriting result ($m) 444 826 1,382 -409 1,711 2,219 3,510

Investment income ($m) 1,164 799 237 777 606 2,956 2,420

Net profit / loss after tax ($m) 907 974 615 100 1,385 2,866 3,073

Total assets ($m) 122,771 120,672 121,499 123,570 124,927 122,771 124,927

Net assets ($m) 27,773 28,038 28,177 27,785 28,875 27,773 28,875

Return on net assetsa

13.1% 14.0% 8.7% 1.4% 19.6% 10.4% 10.8%

Eligible capital base ($m) 28,313 28,333 28,592 28,499 29,300 28,313 29,300

Prescribed capital amount coverage ratio 1.73 1.73 1.80 1.79 1.84 1.73 1.84

Number of entities 108 109 109 105 104 108 104

Direct insurers




Net loss ratio 66% 65% 57% 80% 52% 66% 63%

Underwriting result ($m) 547 775 1,371 -354 1,759 2,222 3,551



Total assets ($m) 111,237 109,383 110,227 111,709 113,254 111,237 113,254

Net assets ($m) 24,426 24,764 24,979 24,601 25,799 24,426 25,799


14.9% 15.1% 11.1% 1.9% 22.3% 11.1% 12.5%




Reinsurers

Net earned premium ($m) 580 416 409 443 434 1,699 1,702

Gross incurred claims ($m) 605 391 714 902 464 1,492 2,471

Net incurred claims ($m) 569 239 252 383 371 1,206 1,245

Net loss ratio 98% 57% 62% 87% 85% 71% 73%

Underwriting result ($m) -103 51 11 -54 -49 -2 -41

Investment income ($m) 129 51 -66 69 50 338 104

Net profit / loss after tax ($m) 1 48 -74 -15 -23 158 -64

Total assets ($m) 11,534 11,290 11,271 11,861 11,672 11,534 11,672

Net assets ($m) 3,347 3,274 3,198 3,183 3,076 3,347 3,076


0.2% 5.9% -9.1% -1.9% -2.9% 4.8% -2.0%




Year end

Jun 2016

Year end

Jun 2017


Key statistics (continued)

Quarter end


Direct insurers from large groupsb




Net loss ratio 67% 68% 57% 82% 53% 68% 65%

Underwriting result ($m) 266 344 912 -435 1,179 906 2,000

Investment income ($m) 652 503 -166 518 378 1,700 1,234


Total assets ($m) 73,372 71,619 72,165 73,253 73,982 73,372 73,982

Net assets ($m) 12,802 13,032 13,214 12,903 13,843 12,802 13,843


19.2% 19.1% 15.4% 2.2% 31.7% 14.4% 16.9%




Personal line insurersb


Gross incurred claims ($m) 920 840 931 1,286 832 3,516 3,890


Net loss ratio 64% 57% 59% 80% 51% 62% 62%

Underwriting result ($m) 127 213 187 -39 282 571 643

Investment income ($m) 50 29 10 30 34 156 104

Net profit / loss after tax ($m) 72 107 81 -50 166 278 305

Total assets ($m) 8,399 8,601 8,669 8,987 9,034 8,399 9,034

Net assets ($m) 1,980 1,981 2,062 1,952 2,092 1,980 2,092


15.0% 21.7% 16.1% -10.0% 32.9% 14.6% 15.0%




Commercial line insurersb


Gross incurred claims ($m) 778 705 771 1,196 760 3,528 3,432


Net loss ratio 72% 63% 59% 79% 55% 67% 64%

Underwriting result ($m) 46 100 147 -13 182 181 416


Net profit / loss after tax ($m) 94 92 39 -32 79 110 178

Total assets ($m) 20,527 20,602 20,859 20,627 21,451 20,527 21,451

Net assets ($m) 5,840 5,925 5,948 5,824 5,962 5,840 5,962


6.5% 6.2% 2.6% -2.1% 5.4% 1.9% 3.0%




aQuarterly figures expressed as annual percentage rates. See returns in the glossary.

bFigures for these segments can be found in the report version and database version

Year end

Jun 2016

Year end

Jun 2017


Key statistics (continued)

Quarter end


Lenders' mortgage insurersb

Net earned premium ($m) 179 184 170 182 176 753 712

Gross incurred claims ($m) 83 92 63 63 91 252 309

Net incurred claims ($m) 66 72 44 49 61 161 227

Net loss ratio 37% 39% 26% 27% 35% 21% 32%

Underwriting result ($m) 103 103 115 131 98 525 448


Net profit / loss after tax ($m) 140 109 67 130 100 521 407

Total assets ($m) 8,295 7,824 7,798 7,917 7,876 8,295 7,876

Net assets ($m) 3,542 3,534 3,472 3,575 3,552 3,542 3,552


14.8% 12.4% 7.7% 14.8% 11.3% 13.4% 11.5%




Other direct insurersb

Jun 2016 Sep 2016 Dec 2016 Mar 2017 Jun 2017Year End Jun 2016Year End Jun 2017


Gross incurred claims ($m) 35 30 31 140 18 126 219


Net loss ratio 49% 28% 45% 56% 22% 41% 38%



Net profit / loss after tax ($m) -3 -1 -4 -5 4 5 -6

Total assets ($m) 644 735 736 926 911 644 911

Net assets ($m) 262 292 283 346 349 262 349


-3.9% -1.3% -5.0% -7.0% 4.3% 1.7% -2.0%

Eligible capital base ($m) 264 291 282 341 342 264 342




bFigures for these segments can be found in the report version and database version

Year end

Jun 2016

Year end

Jun 2017


Table 1a General insurers' financial performance($ million)

Quarter end


Gross written premium 12,665 11,261 10,836 10,266 13,017 43,880 45,380

Gross earned premium 11,047 11,207 11,405 11,376 11,368 43,731 45,357

Direct business 9,004 9,287 9,441 9,320 9,429 36,029 37,477

Inwards reinsurance 1,826 1,691 1,734 1,812 1,702 6,854 6,940

Fire service levy 218 229 231 244 237 848 941

Outwards reinsurance expense 3,159 3,281 3,386 3,415 3,435 13,498 13,517

Net earned premium 7,889 7,926 8,019 7,961 7,933 30,233 31,840

Gross incurred claims 8,102 7,336 8,248 11,731 6,523 31,699 33,837

Direct business

of which:

6,509 6,403 6,679 9,644 5,479 26,673 28,205

Paid claims 6,863 6,590 6,371 6,242 7,297 26,956 26,500

Movement in outstanding claims liabilities -354 -187 308 3,402 -1,818 0 1,705

Inwards reinsurance

of which:

1,593 933 1,569 2,086 1,044 5,025 5,632

Paid claims 1,634 1,254 1,244 1,187 1,212 5,300 4,897

Movement in outstanding claims liabilities -41 -322 325 899 -168 -275 734

Non-reinsurance recoveries revenue 761 747 801 1,131 497 2,844 3,176

Reinsurance recoveries revenue 1,915 1,479 2,884 4,186 1,744 8,816 10,292

Net incurred claims 5,425 5,110 4,564 6,414 4,282 20,039 20,369

Current period net claims expense 5,630 5,200 5,855 6,483 4,895 21,679 22,432

Non-recurring items that are part of net claims -205 -90 -1,291 -69 -613 -1,640 -2,063

Acquisition costs (excluding LAT) 591 691 724 684 629 2,588 2,728

Results of liability adequacy tests 1 -3 23 2 -24 40 -3

Commission expense 1,057 1,034 1,062 1,006 1,106 4,131 4,208

Other underwriting expenses 572 461 440 453 428 2,020 1,782

Levies and charges 183 206 208 201 201 729 816

Commission revenue 384 398 383 389 400 1,532 1,570

Total underwriting expenses 2,019 1,990 2,074 1,956 1,941 7,975 7,961

Underwriting result 444 826 1,382 -409 1,711 2,219 3,510

Investment income on assets backing insurance liabilities 753 474 -4 515 409 1,939 1,394

Investment expenses on assets backing insurance liabilities 6 6 6 6 5 26 24

Insurance result 1,191 1,294 1,372 100 2,115 4,135 4,880

Investment income on shareholders' funds 411 326 241 261 197 1,018 1,026

Other operating expenses 577 527 1,053 480 584 2,166 2,644

Other operating income 267 274 303 270 261 1,068 1,108

Income tax expense (benefit) from continuing operations 385 393 248 52 603 1,189 1,296

Other profit and loss items 0 0 0 0 0 0 0

Net profit / loss after tax 907 974 615 100 1,385 2,866 3,073


Year end

Jun 2016

Year end

Jun 2017


Table 1b General insurers' financial position($ million)

Quarter end


Cash and liquid assets 2,357 2,442 2,369 2,166 2,289

Investments 68,072 67,815 68,140 68,315 67,517

Non-reinsurance recoverables 4,622 4,628 4,689 5,118 4,660

Reinsurance recoverables 14,255 13,600 14,740 17,128 17,115

From APRA-authorised reinsurers 5,815 5,457 5,477 6,434 6,335

From non-APRA authorised reinsurers

of which :

8,396 8,086 9,228 10,662 10,763

Related to events that occurred within the insurer's

current and previous financial years

4,134 4,097 4,720 6,461 6,875

Related to events that occurred prior to the insurer's

previous financial year

4,254 3,982 4,498 4,107 3,812

Overdue for more than 6 months 9 7 10 95 76

From contracts ineligible under GPS 230 43 57 35 32 17

Premium receivables 13,121 12,497 12,145 11,237 13,350

Deferred reinsurance expense 8,116 7,632 7,554 7,915 8,428

Deferred acquisition costs 3,986 4,081 3,978 3,873 4,044

Intangible assets 1,168 1,365 1,353 1,346 1,347

Other assets 7,075 6,613 6,532 6,473 6,178

Total assets 122,771 120,672 121,499 123,570 124,927

Outstanding claims liability 51,990 51,478 52,123 56,456 54,363

Unearned premium liability 27,832 28,202 27,853 26,929 28,697

Unexpired risk liability 34 35 32 28 31

Tax provisions 210 314 188 243 194

Payables on reinsurance contracts 4,645 4,069 4,302 4,247 4,902

Borrowings and loan capital 1,894 1,772 1,814 1,701 1,530

Creditors and accruals 6,296 5,133 5,308 4,757 5,105

Other liabilities 2,098 1,631 1,700 1,424 1,230

Total liabilities 94,998 92,634 93,321 95,785 96,052

Share capital 14,427 14,454 14,978 14,999 14,973

Reserves 1,492 1,493 1,538 1,363 1,412

Retained profits 11,853 12,091 11,661 11,422 12,490

Net assets 27,773 28,038 28,177 27,785 28,875

Number of entities 108 109 109 105 104


Table 1c General insurers' performance ratios

Quarter end


Outwards reinsurance expense ($m) 3,159 3,281 3,386 3,415 3,435 13,498 13,517

Gross earned premium ($m) 11,047 11,207 11,405 11,376 11,368 43,731 45,357

Cession ratio 29% 29% 30% 30% 30% 31% 30%

Gross incurred claims (net of non-reinsurance recoveries

revenue) ($m) 7,340 6,589 7,447 10,600 6,025 28,855 30,661


Gross loss ratio 66% 59% 65% 93% 53% 66% 68%



Net loss ratio 69% 64% 57% 81% 54% 66% 64%

Underwriting expenses ($m) 2,019 1,990 2,074 1,956 1,941 7,975 7,961


Underwriting expense ratio 26% 25% 26% 25% 24% 26% 25%

Net underwriting combined ratio 94% 90% 83% 105% 78% 93% 89%


Average total investments ($m) 67,820 67,943 67,977 68,227 67,916 68,685 67,794

Return on total investmentsa 6.9% 4.7% 1.4% 4.6% 3.6% 4.3% 3.6%

Net profit after tax ($m) 907 974 615 100 1,385 2,866 3,073

Average total assets ($m) 120,760 121,721 121,085 122,534 124,248 121,910 123,849

Return on total assetsa 3.0% 3.2% 2.0% 0.3% 4.5% 2.4% 2.5%


Average net assets ($m) 27,664 27,906 28,108 27,981 28,330 27,640 28,324

Return on net assetsa 13.1% 14.0% 8.7% 1.4% 19.6% 10.4% 10.8%



Year end

Jun 2016

Year end

Jun 2017


Table 1d General insurers' investment performance

Quarter end


Investment performance

Interest income ($m) 493 488 482 476 486 2,032 1,932

Dividend income ($m) 29 61 504 24 31 135 620

Rental income ($m) 9 8 9 9 7 34 33

Trust distributions ($m) 328 28 124 26 266 608 444

Other distributions ($m) 0 0 0 0 0 0 0

Foreign exchange gains/losses ($m) 36 -9 43 -57 12 64 -11

Unrealised gains/losses ($m) 207 179 -933 246 -204 -25 -712

Realised gains/losses ($m) 62 47 9 53 11 111 120

Other investment income ($m) 0 -1 -1 -1 -2 -4 -6

Total investment income ($m) 1,164 799 237 777 606 2,956 2,420

On assets backing insurance liabilities ($m) 753 474 -4 515 409 1,939 1,394

On shareholders' funds ($m) 411 326 241 261 197 1,018 1,026

Investment position

Interest bearing investments ($m) 50,615 50,491 50,984 51,058 50,811

Deposits ($m) 5,338 5,256 5,071 6,199 6,145

Securities issued by financial corporations ($m) 14,875 14,672 14,399 14,146 13,365

Securities issued by government and government

corporations ($m)

20,485 20,784 21,706 20,798 21,662

Other interest bearing securities ($m) 9,917 9,779 9,807 9,915 9,639

Equity investments ($m) 1,518 1,574 1,601 1,757 1,576

Listed subordinated debt ($m) 160 163 256 217 231

Unlisted subordinated debt ($m) 589 600 499 570 448

Listed direct equity holdings ($m) 737 779 813 936 854

Unlisted direct equity holdings ($m) 33 32 33 35 43

Indirect investments ($m) 11,632 11,351 10,481 10,842 10,922

Cash ($m) 1,093 1,303 933 1,034 1,109

Fixed interest ($m) 7,958 7,295 6,964 7,021 6,989

Equities ($m) 1,629 1,826 1,644 1,709 1,607

Property investments ($m) 746 771 787 786 802

Other ($m) 206 156 153 291 415

Property investments ($m) 179 216 133 134 126

Loans and advances ($m) 3,587 3,588 4,344 3,921 3,532

Other investments ($m) 540 594 598 603 548

Total investments ($m) 68,072 67,815 68,140 68,315 67,517



Return on total investmentsa

6.9% 4.7% 1.4% 4.6% 3.6% 4.3% 3.6%



Year end

Jun 2016

Year end

Jun 2017


Table 1e General insurers' capital adequacy

Quarter end


Capital adequacy

OCL insurance risk charge ($m) 4,502 4,494 4,394 4,560 4,346

PL insurance risk charge ($m) 3,114 3,079 2,994 2,720 3,110

Asset risk charge ($m) 5,454 5,520 5,304 5,693 5,633

Insurance concentration risk charge ($m) 4,519 4,489 4,421 4,249 4,164

Operational risk charge ($m) 1,589 1,578 1,566 1,561 1,578

Asset concentration risk charge ($m) 21 22 26 27 12

Aggregation benefit ($m) -2,888 -2,914 -2,817 -2,935 -2,935

Adjustments approved by APRA ($m) 34 2 -101 -48 -85

Total prescribed capital amount ($m) 16,402 16,333 15,848 15,889 15,887

Branch insurer adjusted net assets in Australia ($m) 4,195 4,243 4,114 4,006 3,978

Non-branch insurer capital base ($m) 24,118 24,089 24,478 24,493 25,323

Common equity tier 1 capital ($m) 22,061 22,024 22,190 22,205 23,255

Additional tier 1 capital ($m) 678 678 678 678 678

Tier 2 capital ($m) 1,380 1,387 1,610 1,610 1,390

Total eligible capital base ($m) 28,313 28,333 28,592 28,499 29,300

Prescribed capital amount coverage ratio 1.73 1.73 1.80 1.79 1.84

Insurance risk charge components ($ million)

OCL insurance risk charge

of which :

4,502 4,494 4,394 4,560 4,346

Short-tail property classes 452 414 450 529 448

Long-tail classes 3,030 3,068 2,952 3,005 2,916

Mortgage business 58 63 65 65 68

Other direct classes 94 96 95 102 103

Inwards reinsurance 800 786 782 819 812

PL insurance risk charge

of which :

3,114 3,079 2,994 2,720 3,110

Short-tail property classes 1,052 1,094 1,090 1,059 1,126

Long-tail classes 838 824 739 678 794

Mortgage business 268 268 275 256 259

Other direct classes 195 196 193 186 197

Inwards reinsurance 476 520 480 393 479

Asset risk charge components ($ million)

Asset risk charge

of which :

5,454 5,520 5,304 5,693 5,633

Real interest rate upwards 132 164 229 192 174

Real interest rate downwards 60 56 46 39 47

Expected inflation upwards 1,447 1,527 1,497 1,511 1,415

Expected inflation downwards 4 5 4 4 4

Foreign exchange upwards 387 385 405 378 382

Foreign exchange downwards 125 125 146 149 161

Equity stress 949 1,171 856 1,154 1,059

Credit spread 1,511 1,500 1,417 1,432 1,450

Default stress 2,009 1,836 1,976 2,091 2,143

Property stress 300 351 309 314 318


Table 1f General insurers' underwriting performance - Houseowners/householders

Quarter end


Underwriting performance Houseowners/householders

Gross written premium ($m) 1,987 2,031 2,028 1,981 2,100 7,836 8,140

Number of risks ('000) 2,964 2,910 2,935 2,950 2,972 11,704 11,766


Outwards reinsurance expense ($m) 615 636 634 634 660 2,502 2,564


Gross incurred claims ($m) 1,178 893 1,280 2,272 939 4,534 5,384

Non-reinsurance recoveries revenue ($m) 36 15 60 133 121 110 329

Reinsurance recoveries revenue ($m) 219 151 162 878 149 909 1,339

Net incurred claims ($m) 923 728 1,059 1,261 669 3,515 3,716

Current perod net claims expense ($m) 913 749 1,051 1,318 643 3,482 3,761

Non-recurring items that are part of net claims ($m) 10 -21 7 -56 26 33 -45

Acquisition costs (excluding LAT) ($m) 122 129 136 125 127 483 518

Commission revenue ($m) 42 43 45 43 51 180 182

Commission expense ($m) 176 173 183 180 191 698 727

Results of liability adequacy tests ($m) 2 -2 0 0 0 1 -2

Levies and charges ($m) 67 76 79 77 85 272 317

Other underwriting expenses ($m) 89 72 65 65 68 313 269

Total underwriting expenses ($m) 414 406 417 405 420 1,588 1,647

Underwriting result ($m) 85 308 -2 -217 394 536 483

Average premium per risk ($) 670 698 691 672 707 670 692

Cession ratio 30% 31% 30% 30% 31% 31% 30%

Gross loss ratioa

56% 42% 58% 103% 38% 54% 60%

Net loss ratio 65% 50% 72% 87% 45% 62% 64%



Premiums and claims for risks located in

Australia

Gross incurred claims for risks located in Australia 1,170 897 1,271 2,268 933 4,516 5,369

New South Wales 480 264 340 849 206 1,685 1,660

Victoria 221 214 370 286 201 971 1,071

Queensland 196 140 223 740 361 849 1,464

South Australia 82 139 205 192 63 380 599

Western Australia 120 92 83 146 65 412 386

Tasmania 56 30 20 20 12 128 82

Australian Capital Territory 6 8 20 17 16 59 61

Northern Territory 10 9 9 19 9 32 46

Gross earned premium for risks located in Australia 2,035 2,074 2,104 2,079 2,137 8,125 8,395

a Gross loss ratio is provided net of non-reinsurance recoveries revenue

Houseowners/householders($ million)

Year end

Jun 2016

Year end

Jun 2017


Table 1g General insurers' underwriting performance - Domestic motor vehicle

Quarter end


Underwriting performance Domestic motor vehicle

Gross written premium ($m) 2,194 2,239 2,130 2,301 2,341 8,507 9,011

Number of risks ('000) 3,884 3,900 3,628 3,953 3,760 15,082 15,240





Non-reinsurance recoveries revenue ($m) 407 397 431 440 360 1,517 1,627

Reinsurance recoveries revenue ($m) 264 268 313 465 259 1,008 1,304


Current perod net claims expense ($m) 1,266 1,312 1,419 1,446 1,232 5,031 5,409

Non-recurring items that are part of net claims ($m) 43 -35 25 -23 62 25 29




Results of liability adequacy tests ($m) -4 5 2 -2 -2 -1 3




Underwriting result ($m) 3 73 -79 -58 23 143 -40


Cession ratio 19% 20% 20% 20% 20% 19% 20%

Gross loss ratioa

75% 72% 80% 87% 72% 73% 78%

Net loss ratio 77% 74% 82% 81% 75% 76% 78%




Australia

Gross incurred claims for risks located in Australia 1,979 1,939 2,174 2,322 1,909 7,568 8,344

New South Wales 736 722 765 1,009 681 2,786 3,177

Victoria 554 539 599 564 550 2,070 2,252

Queensland 313 295 334 345 313 1,237 1,287

South Australia 121 129 219 140 118 477 607


Tasmania 28 26 30 29 26 106 112



Gross earned premium for risks located in Australia 2,098 2,148 2,179 2,170 2,167 8,239 8,664


Year end

Jun 2016

Year end

Jun 2017

Domestic motor vehicle($ million)


Table 1h General insurers' underwriting performance - Fire and ISR

Quarter end


Underwriting performance Fire and ISR

Gross written premium ($m) 1,115 994 1,087 717 1,172 3,648 3,971

Number of risks ('000) 457 384 408 330 444 1,533 1,566

Gross earned premium ($m) 975 996 1,095 1,018 1,018 4,000 4,128



Gross incurred claims ($m) 502 353 1,336 1,556 368 2,743 3,613

Non-reinsurance recoveries revenue ($m) 28 -3 106 118 -105 136 116

Reinsurance recoveries revenue ($m) 104 20 821 790 155 941 1,785


Current perod net claims expense ($m) 441 320 460 669 345 1,750 1,794

Non-recurring items that are part of net claims ($m) -70 16 -51 -21 -27 -84 -83




Results of liability adequacy tests ($m) 2 -5 7 -1 3 23 4




Underwriting result ($m) -71 -19 -14 -291 3 -383 -320

Average premium per risk ($) 2,443 2,588 2,662 2,175 2,640 2,380 2,535

Cession ratio 41% 43% 40% 40% 44% 43% 42%

Gross loss ratioa

49% 36% 112% 141% 46% 65% 85%

Net loss ratio 65% 59% 62% 107% 56% 73% 71%




Australia

Gross incurred claims for risks located in Australia 448 321 912 1,521 414 2,572 3,168

New South Wales 90 65 238 301 196 1,118 799

Victoria 123 88 167 253 53 480 561

Queensland 82 58 253 703 120 396 1,133

South Australia 20 42 121 150 11 223 324


Tasmania 88 21 29 23 3 120 76



Gross earned premium for risks located in Australia 894 931 1,014 945 949 3,722 3,839


Year end

Jun 2016

Year end

Jun 2017

Fire and ISR($ million)


Table 1i General insurers' underwriting performance - Commercial motor vehicle

Quarter end


Underwriting performance Commercial motor vehicle

Gross written premium ($m) 690 536 524 490 729 2,098 2,278

Number of risks ('000) 437 365 410 452 441 1,598 1,668

Gross earned premium ($m) 532 538 544 544 556 2,074 2,184

Outwards reinsurance expense ($m) 73 74 77 78 81 268 310




Reinsurance recoveries revenue ($m) 50 43 69 75 37 181 224



Non-recurring items that are part of net claims ($m) 19 -9 -8 10 15 30 8




Results of liability adequacy tests ($m) 3 -9 7 -5 -5 24 -11



Total underwriting expenses ($m) 141 119 121 121 120 508 481

Underwriting result ($m) -67 18 -37 -40 10 -113 -49


Cession ratio 14% 14% 14% 14% 15% 13% 14%

Gross loss ratioa

82% 69% 83% 84% 69% 77% 76%

Net loss ratio 84% 70% 82% 83% 73% 78% 77%




Australia

Gross incurred claims for risks located in Australia 481 404 494 545 427 1,712 1,870

New South Wales 176 133 156 184 180 600 653

Victoria 141 104 142 121 145 439 512

Queensland 57 62 61 92 35 230 251

South Australia 39 40 77 81 16 175 213


Tasmania 9 8 8 9 6 30 30



Gross earned premium for risks located in Australia 498 505 510 509 522 1,960 2,046


Year end

Jun 2016

Year end

Jun 2017

Commercial motor vehicle($ million)


Table 1j General insurers' underwriting performance - CTP motor vehicle

Quarter end


Underwriting performance CTP motor vehicle

Gross written premium ($m) 1,194 1,103 963 1,116 1,009 3,915 4,192

Number of risks ('000) 5,035 4,122 2,111 4,962 3,683 13,446 14,878

Gross earned premium ($m) 929 1,029 1,032 1,037 1,059 3,650 4,156



Gross incurred claims ($m) 486 1,113 167 1,109 173 3,060 2,562

Non-reinsurance recoveries revenue ($m) 14 110 -11 120 56 311 274




Non-recurring items that are part of net claims ($m) -391 -32 -677 -20 -615 -938 -1,344




Results of liability adequacy tests ($m) 14 0 0 0 0 17 0




Underwriting result ($m) 332 -56 656 -42 673 532 1,232


Cession ratio 17% 18% 24% 24% 24% 17% 22%

Gross loss ratioa

51% 98% 17% 95% 11% 75% 55%

Net loss ratio 46% 96% 6% 95% 6% 71% 51%




Australia

Gross incurred claims for risks located in Australia 484 1,159 157 1,116 178 3,054 2,610

New South Wales 421 761 112 713 91 2,248 1,677

Victoria 0 0 0 0 0 0 0

Queensland 88 284 * 269 92 798 *

South Australia 0 74 81 90 65 0 310


Tasmania 0 0 0 0 0 0 0

Australian Capital Territory -25 41 * 44 -70 8 *


Gross earned premium for risks located in Australia 926 1,027 1,030 1,035 1,057 3,640 4,148


Year end

Jun 2016

Year end

Jun 2017

CTP motor vehicle($ million)


Table 1k General insurers' underwriting performance - Public and product liability

Quarter end


Underwriting performance Public and product liability


Number of risks ('000) 2,455 2,411 2,492 2,294 2,441 9,468 9,637






Reinsurance recoveries revenue ($m) 171 94 49 121 172 1,070 436


Current perod net claims expense ($m) 262 222 236 245 207 1,034 911

Non-recurring items that are part of net claims ($m) -46 3 -68 -14 -3 -507 -83




Results of liability adequacy tests ($m) -7 1 3 12 -10 0 6






Cession ratio 27% 26% 26% 25% 25% 39% 25%

Gross loss ratioa

69% 56% 38% 62% 66% 71% 55%

Net loss ratio 53% 53% 40% 54% 47% 39% 49%




Australia


New South Wales 132 141 55 173 193 757 562

Victoria 113 64 84 67 80 368 295

Queensland 78 53 15 56 44 199 168

South Australia 15 21 20 20 31 76 92


Tasmania 9 3 3 3 2 21 10


Northern Territory 1 8 -1 5 4 3 17



Year end

Jun 2016

Year end

Jun 2017

Public and product liability($ million)


Table 1l General insurers' underwriting performance - Professional indemnity

Quarter end


Underwriting performance Professional indemnity


Number of risks ('000) 159 166 189 110 195 552 660





Non-reinsurance recoveries revenue ($m) 49 28 19 20 -20 105 48



Current perod net claims expense ($m) 255 163 212 199 149 800 723

Non-recurring items that are part of net claims ($m) -69 -22 -108 0 -5 -88 -135




Results of liability adequacy tests ($m) -14 6 -14 1 0 -5 -7






Cession ratio 31% 30% 28% 30% 37% 30% 31%

Gross loss ratioa

70% 70% 53% 75% 85% 76% 71%

Net loss ratio 73% 51% 36% 71% 58% 66% 53%




Australia


New South Wales 160 125 142 138 120 588 526

Victoria 78 86 38 95 118 275 337

Queensland 24 37 14 30 18 162 99

South Australia 11 18 13 18 2 57 52


Tasmania 3 4 2 2 -2 8 7





Year end

Jun 2016

Year end

Jun 2017

Professional indemnity($ million)


Table 1m General insurers' underwriting performance - Employers' liability

Quarter end


Underwriting performance Employers' liability


Number of risks ('000) 57 27 48 36 63 148 173






Reinsurance recoveries revenue ($m) 52 27 -27 34 23 451 57

Net incurred claims ($m) 355 330 93 309 222 1,089 953


Non-recurring items that are part of net claims ($m) 17 25 -225 -13 -69 -276 -283


Commission revenue ($m) 5 5 * 5 6 18 *

Commission expense ($m) 19 13 15 13 23 * 64

Results of liability adequacy tests ($m) 4 3 4 -7 0 * -1


Other underwriting expenses ($m) 11 24 * 26 26 83 *


Underwriting result ($m) -45 -42 205 2 63 24 228


Cession ratio 8% 8% 7% 7% 8% 15% 8%

Gross loss ratioa

106% 94% 17% 88% 64% 98% 65%

Net loss ratio 101% 94% 25% 86% 63% 82% 67%




Australia


New South Wales * 43 -65 29 21 * 27

Victoria 20 * * 12 * 60 *

Queensland 1 1 0 1 -1 * 1

South Australia 4 2 -3 3 * 10 *


Tasmania 32 * 15 37 15 147 *

Australian Capital Territory 35 44 * 36 28 * *

Northern Territory * 32 27 32 21 * 113



Year end

Jun 2016

Year end

Jun 2017

Employers' liability($ million)


Table 1n General insurers' underwriting performance - Mortgage

Quarter end


Underwriting performance Mortgage


Number of risks ('000) 51 47 49 47 47 200 190




Gross incurred claims ($m) 80 88 61 * 89 244 *

Non-reinsurance recoveries revenue ($m) 4 * * * * * *

Reinsurance recoveries revenue ($m) 12 * 14 * * * *

Net incurred claims ($m) 64 69 * * 60 155 *

Current perod net claims expense ($m) * * 44 * 59 * *

Non-recurring items that are part of net claims ($m) * * * * 0 * *

Acquisition costs (excluding LAT) ($m) * 24 26 * * * *


Commission expense ($m) * 0 0 * * * *

Results of liability adequacy tests ($m) 0 0 0 0 * 0 *


Other underwriting expenses ($m) 16 18 * 14 * 68 *

Total underwriting expenses ($m) 9 7 * 0 15 58 *

Underwriting result ($m) 102 105 * * 97 513 *


Cession ratio 35% 34% 37% 34% 33% 33% 35%

Gross loss ratioa

29% * * * * * *

Net loss ratio 37% 38% * * 35% 21% *


Net underwriting combined ratio 42% 42% * * 43% 29% *


Australia

Gross incurred claims for risks located in Australia 81 88 62 * 89 245 *

New South Wales * 11 2 1 7 * 21

Victoria 3 * 8 * 0 22 *

Queensland 65 32 29 * 36 164 *

South Australia 0 1 2 * * 5 *

Western Australia * 35 20 15 32 * 102

Tasmania 2 * 1 2 -2 7 *

Australian Capital Territory -1 0 0 * * -1 *




Year end

Jun 2016

Year end

Jun 2017

Mortgage($ million)


Table 1o General insurers' underwriting performance - Other direct classes

Quarter end


Underwriting performance Other direct classes

Gross written premium ($m) 1,097 1,050 1,032 996 1,106 4,138 4,183

Number of risks ('000) 10,824 9,318 10,517 9,409 10,775 38,703 40,018




Gross incurred claims ($m) 635 566 573 * 576 2,209 *

Non-reinsurance recoveries revenue ($m) 51 * * * * * *

Reinsurance recoveries revenue ($m) 246 * 214 * * * *

Net incurred claims ($m) 338 361 * * 380 1,347 *

Current perod net claims expense ($m) * * 350 * 364 * *

Non-recurring items that are part of net claims ($m) * * * * 17 * *

Acquisition costs (excluding LAT) ($m) * 74 103 * * * *

Commission revenue ($m) 110 108 * 104 105 431 *

Commission expense ($m) * 237 244 * 243 * *

Results of liability adequacy tests ($m) 4 1 -6 1 * * *


Other underwriting expenses ($m) 67 46 * 53 * 248 *


Underwriting result ($m) 70 85 * * 97 284 *


Cession ratio 33% 34% 31% 33% 35% 33% 33%

Gross loss ratioa

56% * * * * * *

Net loss ratio 49% 51% * * 54% 48% *


Net underwriting combined ratio 90% 88% * * 86% 90% *


Australia


New South Wales 248 228 171 203 209 730 811

Victoria 167 130 * 140 158 577 *

Queensland 67 63 * 110 104 * *

South Australia 40 16 37 32 21 128 107

Western Australia * 60 68 96 42 * 266

Tasmania 7 4 6 8 5 19 22

Australian Capital Territory 19 13 15 * 6 * *

Northern Territory * 16 26 * 6 * *

Gross earned premium for risks located in Australia 974 1,004 992 983 1,015 3,903 3,995


Year end

Jun 2016

Year end

Jun 2017

Other direct classes($ million)


Table 1p General insurers' underwriting performance - Proportional reinsurance

Quarter end


Underwriting performance Proportional reinsurance

Gross written premium ($m) 1,471 1,325 1,306 1,225 * 5,292 *


Outwards reinsurance expense ($m) 546 560 573 534 * 2,340 2,241

Net earned premium ($m) 931 790 772 771 * 2,919 3,069

Gross incurred claims ($m) 1,213 829 716 1,348 754 4,061 3,647

Non-reinsurance recoveries revenue ($m) 66 57 * * * * *

Reinsurance recoveries revenue ($m) 415 268 * * * * *



Non-recurring items that are part of net claims ($m) 231 17 -43 89 -39 298 24

Acquisition costs (excluding LAT) ($m) * * * 57 * * *

Commission revenue ($m) 45 45 * 37 * 164 *


Results of liability adequacy tests ($m) 0 -7 29 5 * -31 *

Levies and charges ($m) * * * 38 * * *

Other underwriting expenses ($m) 7 7 7 6 * * *


Underwriting result ($m) 18 106 144 -65 * * *

Cession ratio 37% 41% 43% 41% * * *

Gross loss ratioa

78% 57% * * * * *

Net loss ratio 79% 64% 52% 87% 63% * 66%

Underwriting expense ratio 19% 23% 30% 21% 22% * 24%

Net underwriting combined ratio 98% 87% 81% 108% 85% * 90%


Year end

Jun 2016

Year end

Jun 2017


Table 1q General insurers' underwriting performance - Non-proportional reinsurance

Quarter end


Underwriting performance Non-proportional reinsurance

Gross written premium ($m) 589 496 248 229 * 2,055 *


Outwards reinsurance expense ($m) 223 221 275 361 * * *

Net earned premium ($m) 159 150 143 188 * * *

Gross incurred claims ($m) 380 104 853 738 290 965 1,985

Non-reinsurance recoveries revenue ($m) 0 0 * * * * *

Reinsurance recoveries revenue ($m) 185 106 * * * * *

Net incurred claims ($m) 195 -3 71 108 130 96 307

Current perod net claims expense ($m) 156 17 203 117 106 188 444

Non-recurring items that are part of net claims ($m) 39 -20 -133 -9 25 -92 -137

Acquisition costs (excluding LAT) ($m) * * * 1 * * *

Commission revenue ($m) 3 3 * 2 * 11 *


Results of liability adequacy tests ($m) -1 5 -8 -1 * -3 *

Levies and charges ($m) * * * 0 * * *

Other underwriting expenses ($m) 8 7 2 9 * * *


Underwriting result ($m) -51 115 55 47 * * *

Cession ratio 58% 60% 66% 66% * * *

Gross loss ratioa

100% 28% * * * * *

Net loss ratio 123% -2% 50% 58% 57% * 43%

Underwriting expense ratio 10% 25% 12% 17% 9% * 15%

Net underwriting combined ratio 132% 23% 62% 75% 66% * 58%


Year end

Jun 2016

Year end

Jun 2017


Table 2a Direct insurers' financial performance($ million)

Quarter end


Gross written premium 12,060 10,410 10,461 9,747 12,351 40,898 42,969

Gross earned premium 10,332 10,659 10,824 10,689 10,809 41,307 42,982

Direct business 8,981 9,287 9,441 9,320 9,429 35,951 37,476

Inwards reinsurance 1,133 1,143 1,153 1,125 1,143 4,507 4,565


Outwards reinsurance expense 3,023 3,149 3,214 3,170 3,310 12,773 12,844

Net earned premium 7,309 7,510 7,611 7,519 7,499 28,534 30,138

Gross incurred claims 7,497 6,945 7,534 10,828 6,059 30,207 31,366

Direct business

of which:

6,487 6,401 6,671 9,645 5,479 26,616 28,196

Paid claims 6,854 6,587 6,370 6,234 7,296 26,931 26,487

Movement in outstanding claims liabilities -367 -185 301 3,411 -1,817 -33 1,709

Inwards reinsurance

of which:

1,009 544 863 1,183 580 3,591 3,171

Paid claims 1,280 877 882 780 809 3,727 3,349

Movement in outstanding claims liabilities -271 -334 -19 403 -229 -136 -178

Non-reinsurance recoveries revenue 760 747 784 1,091 537 2,841 3,159

Reinsurance recoveries revenue 1,880 1,327 2,439 3,707 1,611 8,532 9,083

Net incurred claims 4,856 4,871 4,311 6,031 3,911 18,833 19,124

Current period net claims expense 5,439 4,977 5,486 6,214 4,559 20,841 21,236

Non-recurring items that are part of net claims -583 -106 -1,175 -183 -648 -2,008 -2,112

Acquisition costs (excluding LAT) 585 675 722 677 625 2,540 2,699

Results of liability adequacy tests 3 0 0 -2 -28 74 -30

Commission expense 950 921 939 905 996 3,663 3,761

Other underwriting expenses 566 457 441 445 429 1,996 1,772


Commission revenue 382 395 380 385 395 1,522 1,554

Total underwriting expenses 1,906 1,864 1,929 1,842 1,829 7,479 7,464

Underwriting result 547 775 1,371 -354 1,759 2,222 3,551

Investment income on assets backing insurance liabilities 655 437 45 465 372 1,688 1,320


Insurance result 1,197 1,207 1,410 105 2,127 3,889 4,849

Investment income on shareholders' funds 380 311 258 243 184 931 996

Other operating expenses 530 487 1,005 443 540 1,974 2,476

Other operating income 235 268 288 257 245 1,003 1,059

Income tax expense (benefit) from continuing operations 376 373 263 48 607 1,141 1,292


Net profit / loss after tax 906 925 688 115 1,408 2,708 3,137


Year end

Jun 2016

Year end

Jun 2017


Table 2b Direct insurers' financial position($ million)

Quarter end


Cash and liquid assets 2,160 2,259 2,122 1,949 2,103

Investments 60,049 60,123 60,397 60,589 59,806

Non-reinsurance recoverables 4,616 4,624 4,671 5,061 4,643


From APRA-authorised reinsurers 5,807 5,453 5,472 6,428 6,329


of which :

6,923 6,587 7,454 8,561 8,641



3,856 3,777 4,051 5,321 5,657



3,058 2,803 3,394 3,146 2,909



Premium receivables 12,141 11,283 11,169 10,334 12,500

Deferred reinsurance expense 7,817 7,441 7,519 7,556 8,139

Deferred acquisition costs 3,726 3,775 3,725 3,636 3,802

Intangible assets 1,168 1,365 1,353 1,346 1,347

Other assets 6,800 6,429 6,317 6,226 5,932

Total assets 111,237 109,383 110,227 111,709 113,254




Tax provisions 190 301 170 203 161

Payables on reinsurance contracts 4,320 3,838 4,113 3,783 4,590

Borrowings and loan capital 1,894 1,772 1,814 1,701 1,530

Creditors and accruals 6,217 5,073 5,255 4,668 5,032

Other liabilities 1,483 1,052 1,157 927 806


Share capital 12,832 12,859 13,383 13,403 13,377

Reserves 936 1,043 1,090 915 962


Net assets 24,426 24,764 24,979 24,601 25,799



Table 2c Direct insurers' performance ratios

Quarter end


Outwards reinsurance expense ($m) 3,023 3,149 3,214 3,170 3,310 12,773 12,844


Cession ratio 29% 30% 30% 30% 31% 31% 30%


revenue) ($m) 6,736 6,198 6,750 9,737 5,522 27,365 28,207


Gross loss ratio 65% 58% 62% 91% 51% 66% 66%



Net loss ratio 66% 65% 57% 80% 52% 66% 63%

Underwriting expenses ($m) 1,906 1,864 1,929 1,842 1,829 7,479 7,464






Return on total investmentsa 6.9% 5.0% 2.0% 4.7% 3.7% 4.3% 3.9%



Return on total assetsa 3.3% 3.4% 2.5% 0.4% 5.0% 2.5% 2.8%



Return on net assetsa 14.9% 15.1% 11.1% 1.9% 22.3% 11.1% 12.5%



Year end

Jun 2016

Year end

Jun 2017


Table 2d Direct insurers' investment performance

Quarter end



Interest income ($m) 420 419 411 406 419 1,729 1,655


Rental income ($m) 9 8 9 9 7 34 33



Foreign exchange gains/losses ($m) 30 -8 41 -55 14 55 -8

Unrealised gains/losses ($m) 156 197 -791 245 -185 -52 -535

Realised gains/losses ($m) 63 46 7 56 12 117 121

Other investment income ($m) 0 -1 -1 -1 -2 -4 -6


On assets backing insurance liabilities ($m) 655 437 45 465 372 1,688 1,320

On shareholders' funds ($m) 380 311 258 243 184 931 996

Investment position

Interest bearing investments ($m) 42,998 43,206 43,636 43,737 43,500 172,570 174,079

Deposits ($m) 5,022 4,984 4,899 6,031 5,950 19,435 21,864

Securities issued by financial corporations ($m) 13,823 13,679 13,448 13,147 12,325 57,023 52,598


corporations ($m)

15,430 15,984 16,799 15,902 16,834

62,386 65,518

Other interest bearing securities ($m) 8,723 8,560 8,490 8,658 8,392 33,726 34,099

Equity investments ($m) 1,518 1,574 1,601 1,757 1,576 5,749 6,508

Listed subordinated debt ($m) 160 163 256 217 231 335 866

Unlisted subordinated debt ($m) 589 600 499 570 448 2,393 2,117

Listed direct equity holdings ($m) 737 779 813 936 854 2,837 3,382

Unlisted direct equity holdings ($m) 33 32 33 35 43 184 143

Indirect investments ($m) 11,602 11,321 10,462 10,812 10,898 46,987 43,492

Cash ($m) 1,078 1,287 933 1,024 1,099 4,742 4,342

Fixed interest ($m) 7,958 7,295 6,964 7,021 6,989 33,694 28,269

Equities ($m) 1,615 1,812 1,625 1,690 1,593 5,298 6,720

Property investments ($m) 746 771 787 786 802 2,832 3,146

Other ($m) 206 156 153 291 415 421 1,016

Property investments ($m) 179 216 133 134 126 708 609

Loans and advances ($m) 3,212 3,212 3,968 3,545 3,157 12,812 13,883

Other investments ($m) 540 594 598 603 548 2,249 2,343

Total investments ($m) 60,049 60,123 60,397 60,589 59,806 241,074 240,915




6.9% 5.0% 2.0% 4.7% 3.7% 4.3% 3.9%



Year end

Jun 2016

Year end

Jun 2017


Table 2e Direct insurers' capital adequacy

Quarter end


Capital adequacy

OCL insurance risk charge ($m) 3,821 3,848 3,757 3,918 3,735

PL insurance risk charge ($m) 2,646 2,670 2,569 2,417 2,683

Asset risk charge ($m) 5,042 5,117 4,895 5,254 5,211

Insurance concentration risk charge ($m) 4,138 4,119 4,152 3,988 3,902

Operational risk charge ($m) 1,481 1,485 1,472 1,471 1,482


Aggregation benefit ($m) -2,623 -2,660 -2,560 -2,667 -2,677

Adjustments approved by APRA ($m) 34 2 -101 -48 -85



Non-branch insurer capital base ($m) 23,670 23,637 24,028 24,066 24,874

Common equity tier 1 capital ($m) 21,613 21,572 21,740 21,778 22,807


Tier 2 capital ($m) 1,380 1,387 1,610 1,610 1,390




Asset risk charge

of which :

5,042 5,117 4,895 5,254 5,211



Expected inflation upwards 1,187 1,278 1,253 1,267 1,180




Equity stress 943 1,165 847 1,146 1,053

Credit spread 1,402 1,398 1,317 1,332 1,350

Default stress 1,921 1,745 1,886 1,970 2,032



Table 3a Reinsurers' financial performance($ million)

Quarter end


Gross written premium 605 851 375 519 666 2,982 2,411

Gross earned premium 715 548 581 687 559 2,425 2,375

Direct business 23 0 0 0 0 78 0

Inwards reinsurance 693 548 581 687 558 2,347 2,375


Outwards reinsurance expense 136 132 172 245 124 725 673

Net earned premium 580 416 409 443 434 1,699 1,702

Gross incurred claims 605 391 714 902 464 1,492 2,471

Direct business

of which:

22 2 8 0 0 57 10

Paid claims 9 3 1 9 1 25 14

Movement in outstanding claims liabilities 13 -1 7 -9 -1 33 -4

Inwards reinsurance

of which:

584 389 706 903 464 1,435 2,461

Paid claims 354 377 363 407 403 1,573 1,549

Movement in outstanding claims liabilities 230 12 344 496 61 -139 912

Non-reinsurance recoveries revenue 1 0 17 40 -40 2 17

Reinsurance recoveries revenue 35 153 445 479 132 284 1,209

Net incurred claims 569 239 252 383 371 1,206 1,245

Current period net claims expense 191 223 368 269 336 838 1,196

Non-recurring items that are part of net claims 378 15 -116 114 35 368 49

Acquisition costs (excluding LAT) 5 15 2 6 5 48 28

Results of liability adequacy tests -2 -3 23 3 4 -34 28

Commission expense 107 113 124 101 110 468 447

Other underwriting expenses 6 4 0 7 -1 24 9


Commission revenue 3 3 3 4 5 11 15

Total underwriting expenses 113 126 145 114 112 496 497

Underwriting result -103 51 11 -54 -49 -2 -41

Investment income on assets backing insurance liabilities 98 37 -49 50 37 251 75


Insurance result -5 87 -39 -5 -12 246 31

Investment income on shareholders' funds 31 15 -17 18 13 87 29

Other operating expenses 47 39 48 38 43 192 169

Other operating income 32 5 15 13 16 65 49

Income tax expense (benefit) from continuing operations 9 19 -15 4 -4 49 4


Net profit / loss after tax 1 48 -74 -15 -23 158 -64


Year end

Jun 2016

Year end

Jun 2017


Table 3b Reinsurers' financial position($ million)

Quarter end


Cash and liquid assets 197 183 247 217 186

Investments 8,023 7,691 7,743 7,726 7,710

Non-reinsurance recoverables 6 3 18 57 17


From APRA-authorised reinsurers 8 5 5 6 6


of which :

1,474 1,499 1,774 2,101 2,122



278 320 669 1,140 1,218



1,195 1,179 1,104 961 904



Premium receivables 980 1,214 976 903 850

Deferred reinsurance expense 299 192 35 360 290

Deferred acquisition costs 260 306 253 237 242

Intangible assets 0 0 0 0 0

Other assets 275 184 215 247 246

Total assets 11,534 11,290 11,271 11,861 11,672




Tax provisions 20 13 18 40 32

Payables on reinsurance contracts 325 230 189 464 312

Borrowings and loan capital 0 0 0 0 0

Creditors and accruals 79 60 52 89 74

Other liabilities 615 578 543 497 424


Share capital 1,595 1,595 1,596 1,596 1,595

Reserves 556 450 448 448 449


Net assets 3,347 3,274 3,198 3,183 3,076



Table 3c Reinsurers' performance ratios

Quarter end




Cession ratio 19% 24% 30% 36% 22% 30% 28%


revenue) ($m) 604 391 697 862 503 1,490 2,454


Gross loss ratio 84% 71% 120% 125% 90% 61% 103%



Net loss ratio 98% 57% 62% 87% 85% 71% 73%

Underwriting expenses ($m) 113 126 145 114 112 496 497






Return on total investmentsa 6.5% 2.6% -3.4% 3.5% 2.6% 4.3% 1.3%

Net profit after tax ($m) 1 48 -74 -15 -23 158 -64


Return on total assetsa 0.0% 1.7% -2.6% -0.5% -0.8% 1.4% -0.5%

Net profit after tax ($m) 1 48 -74 -15 -23 158 -64


Return on net assetsa 0.2% 5.9% -9.1% -1.9% -2.9% 4.8% -2.0%



Year end

Jun 2016

Year end

Jun 2017


Table 3d Reinsurers' investment performance

Quarter end



Interest income ($m) 73 69 71 70 66 303 276


Rental income ($m) 0 0 0 0 0 0 0



Foreign exchange gains/losses ($m) 5 -2 2 -2 -2 9 -3

Unrealised gains/losses ($m) 51 -18 -142 1 -19 27 -177

Realised gains/losses ($m) -1 0 2 -2 -2 -6 -1

Other investment income ($m) 0 0 0 0 0 0 0

Total investment income ($m) 129 51 -66 69 50 338 104

On assets backing insurance liabilities ($m) 98 37 -49 50 37 251 75

On shareholders' funds ($m) 31 15 -17 18 13 87 29

Investment position

Interest bearing investments ($m) 7,617 7,285 7,348 7,321 7,311 29,886 29,265

Deposits ($m) 316 272 172 169 195 1,403 808

Securities issued by financial corporations ($m) 1,052 993 952 999 1,040 4,286 3,984


corporations ($m)

5,055 4,800 4,907 4,896 4,828

19,651 19,432

Other interest bearing securities ($m) 1,194 1,220 1,317 1,257 1,247 4,546 5,041

Equity investments ($m) 0 0 0 0 0 0 0

Listed subordinated debt ($m) 0 0 0 0 0 0 0

Unlisted subordinated debt ($m) 0 0 0 0 0 0 0

Listed direct equity holdings ($m) 0 0 0 0 0 0 0

Unlisted direct equity holdings ($m) 0 0 0 0 0 0 0

Indirect investments ($m) 30 30 20 29 24 129 104

Cash ($m) 16 16 0 10 10 55 36

Fixed interest ($m) 0 0 0 0 0 0 0

Equities ($m) 15 14 20 19 14 74 67


Other ($m) 0 0 0 0 0 0 0


Loans and advances ($m) 375 375 375 375 375 1,502 1,502

Other investments ($m) 0 0 0 0 0 0 0

Total investments ($m) 8,023 7,691 7,743 7,726 7,710 31,517 30,871

Total investment income ($m) 129 51 -66 69 50 338 104



6.5% 2.6% -3.4% 3.5% 2.6% 4.3% 1.3%



Year end

Jun 2016

Year end

Jun 2017


Table 3e Reinsurers' capital adequacy

Quarter end


Capital adequacy

OCL insurance risk charge ($m) 681 646 638 642 611

PL insurance risk charge ($m) 468 408 426 303 427

Asset risk charge ($m) 412 403 409 439 421

Insurance concentration risk charge ($m) 381 370 269 261 262

Operational risk charge ($m) 108 93 94 90 96


Aggregation benefit ($m) -265 -254 -257 -268 -259

Adjustments approved by APRA ($m) 0 0 0 0 0



Non-branch insurer capital base ($m) 448 452 450 427 448

Common equity tier 1 capital ($m) 448 452 450 427 448


Tier 2 capital ($m) 0 0 0 0 0




Asset risk charge

of which :

412 403 409 439 421



Expected inflation upwards 260 248 245 245 235




Equity stress 6 6 8 8 6

Credit spread 109 102 101 100 99

Default stress 88 91 90 121 111



Explanatory notes

From the March 2013 quarter onwards, capital and solvency data items are reported under APRA’s new

capital standards which were effective from 1 January 2013 onwards.

From the September 2010 quarter onwards, data in this publication are prepared based on APRA reporting

which has been largely aligned with AASB 1023 General Insurance Contracts (AASB 1023) .

Data in the publication prior to September 2010 are based on APRA’s ‘prospective accounting’ reporting

framework that applied until 1 July 2010. Under this framework, insurers used prospective liability

valuation requirements prescribed by Prudential Standard GPS 310 Audit and Actuarial Reporting and

Valuation (GPS 310) .

Under APRA’s prospective accounting reporting framework, expected future profit or loss on written

business was immediately recognised. Under AASB 1023 , profit or loss is recognised over time in

accordance with the expected pattern of risk associated with the business.

Changes in reporting framework

In the database version, industry data are not provided where direct insurer and reinsurer data are

provided. The industry figure can be calculated by summing these sectors. This principle also applies to

class of business data. Sub-level data may not sum up to total figures due to rounding.

Source of data

Data in this publication are sourced from regulatory returns submitted to APRA under the Financial Sector

(Collection of Data) Act 2001 by authorised general insurance companies. Statistics on Lloyd's Australian

operations are not included in this publication.

Blank copies of the returns and associated instructions are available on the APRA website.

Basis of preparation

Data in this publication are prepared from the individual insurer accounts, not consolidated insurance

group accounts. Transactions between related entities within the same insurance group have not been

eliminated. Examples of such transactions include intra-group reinsurance arrangements (premiums,

claims, reinsurance recoveries, provisions) and loans between parents and subsidiaries.

Due to the nature of the insurance and reinsurance industry, double counting of claims and premiums will

occur in gross measures. Inwards reinsurance essentially reflects a restatement of premium that has

already been included in the direct business figures (where the business is ceded by Australian authorised

insurers).

Figures represent the total operations of Australian authorised insurers, not only business undertaken

within Australia.

Introduction

This publication includes data across different reporting frameworks. For more detail see Change in

reporting frameworks in this note.

The database version of these statistics includes a full time series of statistics that are published in the

PDF publication, and also contains additional data items. Calculated ratios are not provided in the

database version of the publication. A list of ratios and their calculation methodology is provided in the

Data dictionary in the database version.


AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY 3

Quarterly General Insurance Performance Statistics - … … · Quarterly General Insurance...

Documents

Transcript of Quarterly General Insurance Performance Statistics - … … · Quarterly General Insurance...