POWERED BY MOMENTUM MEDIA
Profits fall for life insurers
Life insurers' post-tax profits have fallen $300 million in the year to 30 June 2014, on the back of poor performances of group products, the Australian Prudential Regulation Authority's Quarterly Report reveals.
The report found that annual post-tax profits had dropped by 11.8 per cent in the year to 30 June 2014 ($2.3 billion), compared with the same period in 2013 ($2.6 billion).
APRA figures showed that group risk products created a net after tax loss of $16 million, with revenue of $1.3 billion gained from the products nullified by expenses of the same amount.
While profits fell across the sector by $300 million over the last year, life insurers' revenue increased to $45.8 billion in 2014, from $45 billion 2013, total expense increased by 1.2 billion over the 12 months to 30 June 2014.
Operating costs also contributed to the fall in profits, going up from $7.4 billion for the year to 30 June 2013 to $8.1 billion this year.
AUTHOR
Nicholas O'Donoghue
Nicholas is a journalist for Money Management and Super Review. Nicholas has several years experience as a journalist, reporting and managing websites for various news publications covering the medical and pharmaceuticals sector.
Recommended for you
The insurance company has joined this year’s awards as a principal partner.
The $135 billion fund has transitioned away from TAL Life Insurance following an “extensive tender process”.
The $80 billion fund is facing legal action over allegedly signing up new members to income protection insurance by default without active member consent.
In a Senate submission, the Financial Services Council has once again called for further clarification that the government will assess the consumer outcomes of group insurance against the enshrined objective of superannuation.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
