I’m a bit behind here, but APRA released their quarterly life insurance statistics this month. I’ve done a quick graph of the rolling 12 months profits since APRA first started releasing these statistics.
Note that Group Insurance and Disability Income Insurance are different subsets of the total – the subset (that I haven’t shown) where the industry is making money is retail lump sum insurance.
The graph shows that the rolling 12 months profit for the total life insurance industry has gone up for the first time since the end of 2012.
But the striking part of this graph remains the green line – the profits that the industry as a whole has made as a percentage of premiums. In the 12 months to September 2014, that number has crept back up to 3.3%.
That’s unlikely to be anywhere near enough to provide an adequate return on capital for the shareholders in the industry.