In August 2017, APRA released the June 2017 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 June 2017 quarter.
The life insurance industry reported profits of $285m for risk products in the June 2017 quarter, down from $394m in the previous quarter. The reduction in profits in the June 2017 quarter was largely driven by continued losses in the retail disability income business. However, overall profits remained healthy due to retail lump sum. Group life profits continued to improve but remained at relatively low levels compared to early 2016. Group disability income profits were less than half those reported in the March 2017 quarter, but remain above historical levels.
For the 12 months to June 2017: