APRA reveals what happened to life insurance industry in 2021

For FY21, the Australian life insurance industry’s total experience profit was $436 million through superannuation and $137 million through ordinary class of business. Meanwhile, the total Life Insurance Act operating profit after income tax was $778 million in superannuation and $884 million in ordinary class of business.

Regarding assets backing policy liabilities, focusing on total statutory funds, APRA reported a total of $5,283 million cash and $81,328 million in investments, of which:

$55,080 million accounted for debt securities;
$20,701 million for equities;
$5,158 million for property; and
$389 million for other investments.

For other assets, APRA found a total of $15,506 million. Overall, the assets attributable to products were a whopping $102,118 million.

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For assets backing policy liabilities focusing on superannuation, APRA reported a total of $3,693 million cash and $45,590 million in investments, of which:

$30,188 million accounted for debt securities;
$11,026 million for equities;
$4,222 million for property; and
$153 million for other investments.

Meanwhile, APRA reported a total of $9,459 million for other assets. Overall, the assets attributable to products were $58,741 million.

Lastly, for assets backing policy liabilities on ordinary business, APRA revealed a total of $1,590 million cash and $35,739 million in investments, of which:

$24,892 accounted for debt securities;
$9,675 million for equities;
$936 million for property; and
$236 million for other investments.

APRA also found a total of $6,048 million for other assets, while the total assets attributable to products were $43,377 million.

Finally, focusing on policy liabilities, APRA revealed a total of $7,219,514 million gross insurance amount and $3,411,540 million reinsured insurance amount. Meanwhile, its total gross best estimate liability – considering the gross value of future policy benefits, expenses, and premiums, along with a gross reduction in respect of unrecouped acquisition expense – was $48,668 million.