Thinking | 5 June 2015

APRA Quarterly General Insurance Performance Statistics for March 2015

​The Australian Prudential Regulation Authority (APRA) released its Quarterly General Insurance Performance Statistics March 2015 on 28 May 2015. The publication “provides industry aggregate summaries of financial performance, financial position, capital adequacy and key ratios” which are relevant to the 115 insurers licensed to conduct general insurance business in Australia.

Key findings for the insurance industry for the year ending 31 March 2015 include that:

  1. net earned premiums were $31.8 billion, up 2.4% from the previous year;
  2. gross incurred claims were $31.2 billion, up 21.8% from the previous year;
  3. net incurred claims were $22 billion, up 19.7% from the previous year;
  4. total assets were $116.3 billion, up 4.3% from the previous year; and
  5. total net profit after tax was $3.8 billion, down from $4.7 billion from the previous year.

The following is a snapshot of performance for the following key product classes:

Public and product liability

 Item Year end March 2014 Year end March 2015
Gross written premium ($M) 2,196 2,246
 Number or risks (‘000) 8,841 9,429
Average premium per risk ($) 248 238
 Outwards reinsurance expense ($M) 434 448
Gross earned premium ($M) 2,181 2,245
Gross incurred claims (current and prior years) ($M) (net of non-reinsurance recoveries) 1,297 1,661
Gross loss ratio 59% 74%
Net loss ratio 56% 68%
Underwriting expenses ($M) 594 566
U/W expense ratio 34% 32%
Net U/W combined ratio 90% 100%

Professional indemnity

 Item Year end March 2014 Year end March 2015
Gross written premium ($M) 1,511 1,553
 Number or risks (‘000) 492 543
Average premium per risk ($) 3,073 2,861
 Outwards reinsurance expense ($M) 431 429
Gross earned premium ($M) 1,458 1,530
Gross incurred claims (current and prior years) ($M) (net of non-reinsurance recoveries) 979 1,102
Gross loss ratio 67% 72%
Net loss ratio 58% 71%
Underwriting expenses ($M) 242 244
U/W expense ratio 24% 22%
Net U/W combined ratio 82% 93%

Fire and ISR

 Item Year end March 2014 Year end March 2015
Gross written premium ($M) 3,976 3,707
 Number or risks (‘000) 1,342 1,430
Average premium per risk ($) 2,962 2,592
 Outwards reinsurance expense ($M) 1,806 1,659
Gross earned premium ($M) 4,309 4,041
Gross incurred claims (current and prior years) ($M) (net of non-reinsurance recoveries) 1,697 2,476
Gross loss ratio 39% 61%
Net loss ratio 47% 70%
Underwriting expenses ($M) 1,037 987
U/W expense ratio 41% 41%
Net U/W combined ratio 88% 111%

 

Further information in relation to all classes of business can be found here:

Quarterly General Insurance Performance Statistics March 2015.

Further information can also found at APRA’s media release (28 May 2015).

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