The life industry achieved sharply higher earnings for the year to June 30 as investments returns rebounded strongly to a $4.8 billion profit from a year-earlier deficit of $6.3 billion, according to the Australian Prudential Regulation Authority (APRA). 

Net profit after-tax more than doubled to $1.2 billion from $500 million and total revenue surged to $20.5 billion from $9.5 billion.  

“The improvement in net profit was underpinned by an increase in investment revenue which was partly offset by an increase in policy liabilities and reflected the impact of bond yield movements,” APRA says. 

Effective movement in net policy liabilities came up to $2.5 billion, compared with minus $6.7 billion a year earlier while net policy revenue was flat at $14.7 billion. 

The quarterly APRA industry update also covers the performance of four risk products: individual lump sum, individual disability income insurance (DII), group lump sum and group DII. 

The four products combined for an overall net profit after tax of $441.3 million, down sharply from $1.2 billion a year earlier. 

Individual lump sum and individual DII reported weaker results while group lump sum and group DII performed better. 

Individual lump sum sank to a loss of $367.4 million after making $88.1 million in profit in the preceding 12-month period. The product lost $659.5 million in the June quarter alone. 

Individual DII net profit contracted sharply to $237.9 million from $1.16 billion a year earlier and in the June quarter only managed to make $12.6 million. 

Group lump sum recovered from a $121.3 million loss to a $420.6 million profit and group DII increased its profit from $76.2 million to $ 150.1 million.