Life Insurance Financial Results Update – May 2017 | KPMG | AU

Life Insurance Financial Results: May 2017 reporting season

Life Insurance Financial Results Update – May 2017

The recent reporting season shows that listed life insurers and bank subsidiaries continue to face profitability pressures with few exceptions. Insurers have generally reported lower or negative operating earnings largely driven by poor profitability on their Income Protection (IP) portfolios. KPMG’s Life Insurance Financial Results Update provides an overview of operating earnings, actual/planned margins, annual premium in force (API) and commentary on individual life insurers as reported in their financial reports.

1000

Partner in Charge, Actuarial, Insurance & Superannuation

KPMG Australia

Contact

Also on KPMG.com

Three business people walking up a corridor

Key insights

  • Operating earnings and actual margins have generally been lower compared to recent reporting periods with insurers citing poor claims experience.
  • Profitability on income protection (IP) portfolios appear to be of particular concern with insurers citing worsening termination experience. This has resulted in significant capitalised losses for some insurers where the product is no longer profitable.
  • Planned profit margins have generally trended downwards over recent reporting periods reflecting adverse assumption changes. Margins are increasingly varied amongst insurers with AMP, ANZ and CBA having reported lower planned margins from the previous half year.
  • API growth remains varied amongst insurers, however, overall premium growth has been fairly low. BT and Clearview remain exceptions citing strong new business growth relative to others.

Life Insurance Profitability & Capital Analysis

The Life Insurance Profitability & Capital Summary analyses FY15 comparative profitability and capital levels for the life insurance industry.

 
Read more

Insurance

Insurance

Our insurance practice comprises multi-disciplinary teams, led by senior partners with extensive experience.

Actuarial, Insurance & Superannuation

Actuarial, Insurance & Superannuation

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

Connect with us

 

Request for proposal

 

Submit