Compulsory third party (CTP) motor vehicle cover produced an estimated ultimate loss ratio of 84.4% for the past accident year, the highest among the nine key business classes, according to the Australian Prudential Regulation Authority (APRA).

In 2017 the line returned an ultimate loss of 79.2%.

It achieved $3.77 billion in gross earned premium last year, down from $4.13 billion in 2017, and the estimated gross ultimate cost of claims fell to $3.18 billion from $3.28 billion.

Results for the other eight business classes in APRA’s General Insurance Claims Development Statistics (2017 figures in brackets) include:

• Public and product liability had gross earned premium of $2.3 billion ($2.24 billion), estimated gross ultimate cost of claims of $1.26 billion ($1.36 billion) and estimated ultimate loss ratio of 54% (60.5%)
• Professional indemnity had gross earned premium of $1.8 billion ($1.6 billion), gross ultimate cost of claims of $1.32 billion ($1.29 billion) and ultimate loss ratio of 74% (79.8%)
• Employers’ liability had gross earned premium of $1.63 billion ($1.56 billion), gross ultimate cost of claims of $1.3 billion (1.2 billion) and ultimate loss ratio of 77.4% (77.9%)
• Houseowners and householders had $8.7 billion ($8.3 billion) in gross earned premium, $4.1 billion ($5.1 billion) in gross ultimate cost of claims and ultimate loss ratio of 47.1% (61.2%)
• Domestic motor vehicle had $9.3 billion ($8.7 billion) in gross earned premium, $6.4 billion ($6.1 billion) in gross ultimate cost of claims and ultimate loss ratio of 68.9% (70.5%)
• Fire and industrial special risk had $4.4 billion ($4.2 billion) in gross earned premium, $3.1 billion ($3.3 billion) in gross ultimate cost of claims and ultimate loss ratio of 71.8% (80.5%)
• Commercial motor vehicle had gross earned premium of $2.5 billion ($2.2 billion), $1.8 billion ($1.7 billion) in gross ultimate cost of claims and ultimate loss ratio of 72.6% (75.6%)
• Reinsurance had $6.8 billion ($6.5 billion) in gross earned premium, $3.1 billion ($2.95 billion) in gross ultimate cost of claims and ultimate loss ratio of 46.1% (45.5%).