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