The Australian Prudential Regulation Authority (APRA) has recently released its Quarterly Insurance Performance Statistics publication for the quarter ending December 2014. The report provides insight into the financial performance and position of insurers and reinsurers in the Australian general insurance market.
By way of summary, some of the key statistics compiled in the report show that:
- There were 103 direct insurers and 12 reinsurers licensed to conduct general insurance business in Australia in 2014.
- The net premium earned by the industry in 2014 was AUS$31.7 billion, which was a slight increase from AUS$30.7 billion in the previous year. Of this, direct insurers wrote 95%, with the remaining 5% written by reinsurers.
- The net loss ratio for the industry in 2014 was 66%, being an increase from 61% in the previous year. Whilst there was only a marginal increase of 3% from the previous year in the net loss ratio for direct insurers (to 65%), there was a marked increase evident for reinsurers, as their net loss ratio increased from 43% in 2013 to 74% in 2014. Overall, the industry underwriting result for 2014 was a profit of AUS$2.7 billion, being significantly lower than the AUS$4.1 billion profit reported for the previous year. The result was largely attributed to a number of catastrophe events.
The report is invaluable reading for those operating within (or those with financial interests in) the Australia general insurance market. A full copy of the report can be accessed via the following link:http://www.apra.gov.au/GI/Publications/Pages/quarterly-general-insurance-statistics.aspx