APRA figures show claims expense bite
Higher claims expenses were the major reason Australia’s general insurers made a $1.1 billion underwriting loss last calendar year, according to a new report from the Australian Prudential Regulation Authority (APRA).
The loss was a big drop on the $2.6 billion underwriting profit recorded in 2007, the regulator’s latest quarterly general insurance performance figures show.
They also reveal a 33% jump in net claims compared with 2007, with the figure coming in at $18.2 billion.
Total net profit of $2.2 billion last year was down 52% on the 2007 figure.
The data shows December quarter net profit at $456 million, down 44% on the previous corresponding quarter.
Net premium revenue was a different story. The general industry total for 2008 was up 4% at $23.4 billion. Of this, direct insurers wrote 94% and reinsurers 6%.
The net loss ratio for 2008 was 78%, up from 62%. For reinsurers it was 83%, up from 43% in 2007.
Total assets for the industry were $93.4 billion as at December 31, representing an increase of $3.3 billion, or 4% on the previous year. Liabilities were up 2% at $65.2 billion.
The loss was a big drop on the $2.6 billion underwriting profit recorded in 2007, the regulator’s latest quarterly general insurance performance figures show.
They also reveal a 33% jump in net claims compared with 2007, with the figure coming in at $18.2 billion.
Total net profit of $2.2 billion last year was down 52% on the 2007 figure.
The data shows December quarter net profit at $456 million, down 44% on the previous corresponding quarter.
Net premium revenue was a different story. The general industry total for 2008 was up 4% at $23.4 billion. Of this, direct insurers wrote 94% and reinsurers 6%.
The net loss ratio for 2008 was 78%, up from 62%. For reinsurers it was 83%, up from 43% in 2007.
Total assets for the industry were $93.4 billion as at December 31, representing an increase of $3.3 billion, or 4% on the previous year. Liabilities were up 2% at $65.2 billion.