News

Premium earnings up but profit down

News >>

Premium earnings up but profit down

Email

The Australian general insurance industry earned net profit after tax of $4.1 billion last year, down 12.8% on the 2013 figure.

However, net earned premium was up 3.2% to $31.7 billion, according to the latest statistics from the Australian Prudential Regulation Authority.

Of this sum, primary insurers wrote $30.1 billion and reinsurers $1.6 billion.

Gross incurred claims increased 3.6% to $29.8 billion, while net incurred claims were up 11.8% to $20.8 billion. Gross incurred claims for domestic motor grew 6.1% to $5.7 billion due to higher claims from catastrophes, including last November’s Brisbane hailstorm.

Increased claims led to reduced underwriting profit of $2.7 billion, down from $4.1 billion in 2013.

Short-tail classes such as householder and domestic motor powered the overall premium rise, while investment income for the industry grew 24% to $4.2 billion.

The net loss ratio was 66%, up from 61%, and the underwriting expense ratio was unchanged at 26%.

Total industry underwriting expenses increased 2.1% to $8.1 billion.

At December 31 there were 103 insurers and 12 reinsurers licensed to conduct general insurance business in Australia.

Thankyou to Insurancenews.com.au for this article

Last changed: Mar 06 2015 at 2:14 PM

Comments

  1. None Found

Add Comment

Latest News

High Court dismisses Business Interruption Test Case

Today the High Court dismissed appeal by Insurers on the Business Interruption test case. Even the big insurers make silly mistakes! But you the policy holder may benefit if you were one of the 40% of Business Pack policy holders that added Business Interruption cover to their Business Pack. While it was never the intent of insurers to cover policyholders for the loss of income from a pandemic, the fact that insurers never factored in a risk premium for it, and the fact there is supposed to be a material or physical loss to trigger the Business Interruption section, none of that matters according to the highest Court in the land. So what was the mistake? Simply that when insurers defined what they considered to be the definition of an infectious disease, they referred to the Quarantine Act of 1908 which since was superseded by the Biodiversity Act of 2015. Because the Quarantine Act of 1908 no longer exists, apparently you cannot draw on this for a definition of an infectious disease? Not one of the insurers picked up on this! Shows how much interest we take on the business of Governments, except what is reported in the media.

read more

Three Years running - Insurance Brokerage of the Year 1 to 5 staff

Mandy and Robert Cooper were extremely honoured and astounded to once again win, Insurance Brokerage of the Year for 2020 from Insurance Business Australia magazine. This is the third year running.

While this year has not been the easiest of years for the business with Covid 19, the Recession, the hard market and issues at Lloyds of London, we are literally all in this together as an Insurance Industry.

CPR Insurance Services continues to make our clients the number one focus of our business while managing our relationships with Insurers, who we need more than ever in this market climate.

CPR Insurance Services are a highly ethical Brokerage with a reputation as a trusted advisor who always acts in the Client's best interests. Their experience, knowledge and expertise is amongst the highest in the industry.

CPR Insurance Services is now ten years old as a business and is proud of being an Authorised Representative of Ausure and their partnership with Steadfast, giving CPR the strength and backing to match it with any Broking firm in the Insurance Industry, but remain focussed on supporting the Small to Medium business segment.

Memberships of the National Insurance Brokers Association, Australia and New Zealand Institute of Insurance and Finance, Australian Insurance Law Association, Australian Professional Indemnity Group and the Australian Institute of Company Directors, ensures CPR Insurance Services maintains the high standard of knowledge and expertise required to be one of the best Brokerages in Australia.

CPR Insurance Services also plays a strong role in their local community supporting other Sporting Clubs and Community organisations. They also support and promote local businesses with their operation of the Kedron Brook Business Group who meet regularly and has 174 members.

We are truly honoured to receive this National award once again for the third year as a recognition of CPR Insurance Services contribution.

read more