The life insurance industry narrowed its net loss to $100 million last year from $300 million in 2019, according to the latest update from Australian Prudential Regulation Authority (APRA).

For the December quarter the industry recorded a net profit of $439.2 million, an increase of $420.7 million from the preceding three-month period to September. This was primarily driven by a 50.6% rise in investment revenue to $2.5 billion.

Individual disability income insurance (DII) remains an area of concern for the industry, losing $97.5 million in the December quarter to take its full-year net loss to $739.9 million. The product line made a net loss of $1.47 billion in 2019.

Individual lump sum was the only risk product that was profitable, booking a net profit of $73 million for the December quarter and $543.7 million last year. It made about $653.3 million in 2019.

Group lump sum made a $7.8 million net loss in the December quarter and a $173.5 million loss last year. Group disability income insurance lost $122.5 million last year including $108 million in the three months to December 31.

When combined, the four risk products made an overall net loss of $492.3 million last year, including $140.3 million in the December quarter. In 2019 they lost $1.33 billion.

Net policy revenue in the December quarter declined 10.4% to $3.5 billion from the preceding period and fell 9.3% to $14.4 billion last year from 2019.

Click here for the APRA report.