Australia’s general insurance earnings jumps eightfold in June

It accumulated AUS$4.6b.

For the year ending June 2023, Australia’s general insurance market reported a net profit after tax of AUS$4.6b and achieved a return on net assets of 14%, which was attributed to a robust recovery in investment returns.

On a year-on-year (YoY) basis, its neat earnings grew 408.2%, data from the Australian Prudential Regulation Authority (APRA) revealed.

Gross claims expense fell 2.3% YoY to AUS$4.1b whilst underwriting result dipped 6.3% to AUS$5.7b. Underwriting results remained solid, with insurers responding to increased claims costs by raising premiums. 

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Gross incurred claims saw a slight decrease, primarily due to lower claims in the Householder/Houseowner and Fire/ISR lines of business. These categories had experienced unusually high peaks in the prior year due to the 2022 south-east QLD/NSW flood event.

The aggregate prescribed capital amount (PCA) coverage ratio for the industry increased to 1.74x as of June 30, 2023. This reflects a strengthening capital position across the sector.