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:
- net earned premiums were $31.8 billion, up 2.4% from the previous year;
- gross incurred claims were $31.2 billion, up 21.8% from the previous year;
- net incurred claims were $22 billion, up 19.7% from the previous year;
- total assets were $116.3 billion, up 4.3% from the previous year; and
- 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).
Contact
Matthew Curll
Partner & Insurance National Practice Leader
Matthew is a leading insurance lawyer and co-lead of the firm's National Financial Services + Insurance Industry Group.
Matt McDonald
Partner
Matt is an experienced insurance lawyer acting for leading insurers, specialising in public and product liability.
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