In November 2017, APRA released the September 2017 quarter life industry aggregate summaries of financial performance, financial position, as well as details of the performance of individual product groups. KPMG’s Life Insurance Risk Profitability Update provides an overview of the financial performance for life insurance risk products in the September 2017 quarter.
The life insurance industry reported profits of $276m for risk products in the September 2017 quarter, down from $432m in the previous quarter. The reduction in profits in the September 2017 quarter was largely driven by significant reduction in profits for retail lump sum. Retail disability income reported a small profit after six consecutive loss making quarters. Group life continued to produce small profits, but remained at relatively suppressed levels compared to early 2016. While group disability income profits continue to be volatile.