Home / Local / Summer catastrophes sink industry earnings
2 December 2019
The industry’s underwriting profit fell by more than half to $1.9 billion in the year to September as costs from the Sydney hailstorm and Townsville flood last summer severely dented earnings.
A strengthening of claims reserves in long-tail business classes also marred the results, according to the latest Australian Prudential Regulation Authority (APRA) data.
Net profit after-tax declined 13.2% to $3.4 billion and the net loss ratio worsened to 70% from 63% a year earlier.
Gross incurred claims increased 25% to $38.8 billion, outpacing the 6.5% rise in gross earned premium to $49.4 billion.
The APRA data is based on inputs from 97 insurers.
In a separate report, APRA provided individual insurers’ earnings covering various financial years across the 12 months to June 30.
Following are the results of key primary insurers (in alphabetical order):
The results of selected reinsurers: