Life Insurance Risk Profitability Update: December Quarter 2016

Life Insurance Risk Profitability Update: Q4 2016

In February 2017, APRA released the December 2016 quarter life industry aggregate summaries of financial performance, financial position, as well as details of the performance of individual product groups. KPMG’s Life Insurance Risk Profitability Update provides an overview of the financial performance for life insurance risk products in the December 2016 quarter.

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Key insights

The life insurance industry reported losses of $136m for Risk Products in the December 2016 quarter, after 11 consecutive quarters of profits. This was driven by significantly lower profits in Retail Lump Sum and large losses in Retail Disability Income. Group risk profits remain subdued.

  • Retail Lump Sum Risk profits reduced to $29m, compared to $300m+ profit reported for the first two quarters of 2016.
  • Retail Disability Income reported a loss of $209m, making it the fourth consecutive loss making quarter, largely due to investment losses.
  • Group Life indicates a continuation of weakened profits due to strengthening of reserves.
  • Group Disability Income produced a profit after three consecutive loss making quarters, partly due to a reduction in reserves. 

Life Insurance Financial Results – November 2016

The November 2016 reporting season showed growth in operating earnings amongst life risk insurers.

 
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Insurance in Superannuation Newsletter: December Quarter 2016

In this newsletter we review APRA’s quarterly statistics for the December quarter on the profitability of the superannuation insurance sector.

 
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Actuarial, Insurance & Superannuation

Actuarial, Insurance & Superannuation

Actuarial Advisory Services typically assists clients with general insurance, life insurance and wealth insurance, and health financing.

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