Life Insurance Australia :: News
SHARE

Share this news item!

Life insurance industry hit hard by $6.6 billion investment losses

Life insurance industry hit hard by $6.6 billion investment losses

Life insurance industry hit hard by $6.6 billion investment losses?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The Australian Prudential Regulation Authority (APRA) has released its latest industry update, revealing a significant slump in net profit after tax for the life industry in Australia.
The industry suffered a 59.3% decrease in net profit after tax to $500 million for the year ending December, primarily due to investment losses of approximately $6.6 billion.

APRA notes that the losses were caused by both realised and unrealised losses on interest-bearing assets, impacting investment returns during the year. By comparison, the industry reported investment revenue of about $3.8 billion in the previous year.

Despite this setback, risk products, including individual disability income insurance (DII), performed strongly during the same period. APRA reports that net profit from risk products increased to $1.14 billion from $745.6 million in the previous year, with the improved profit largely driven by the $1.1 billion profit recorded by individual DII.

The regulator attributes this increase to movements in bond yields, repricing activities, and the release of Covid-19 reserves throughout the year.

Group lump sum and group DII business also reported profits of $33.7 million and $352 million, respectively, in contrast to a $165.9 million loss and $6.6 million profit the previous year. APRA explains that the improved results were due to lower net policy expenses for group lump sum business and reserve releases for group DII.

However, individual lump sum was the only risk product in the red, reporting a $329.2 million loss, primarily due to an increase in net policy expenses, according to APRA.

While the life industry's investment losses have stung the sector significantly, the strength of its risk products provides some optimism for the future. Industry players will need to remain vigilant and strategic in their investments to navigate the unpredictable financial landscape ahead.

Published:Friday, 10th Mar 2023
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

APRA Implements Cap on High DTI Home Loans to Address Housing Market Concerns
APRA Implements Cap on High DTI Home Loans to Address Housing Market Concerns
13 Dec 2025: Paige Estritori
The Australian Prudential Regulation Authority (APRA) has announced a significant policy change aimed at mitigating risks in the housing market. Effective February 2026, APRA will impose a cap on high debt-to-income (DTI) home loans, limiting such loans to 20% of new home lending. This measure applies to both owner-occupiers and investors, with the exception of new housing developments. - read more
CHU's 2025 State of the Strata Market Report: Key Insights for Property Owners
CHU's 2025 State of the Strata Market Report: Key Insights for Property Owners
13 Dec 2025: Paige Estritori
CHU, Australia's leading strata insurance underwriting agency, has released its 2025 State of the Strata Market report, providing a comprehensive analysis of current industry trends and challenges. The report indicates that strata insurance premiums have experienced a modest increase of 2.8% over the past year, rising from an average of $954 to $981 per lot annually. This growth rate is notably lower than the 3. - read more
NSW Fair Trading Proposes New Powers to Ensure Strata Property Maintenance
NSW Fair Trading Proposes New Powers to Ensure Strata Property Maintenance
13 Dec 2025: Paige Estritori
The New South Wales (NSW) government has introduced a new tranche of strata reforms to parliament, aiming to enhance the maintenance and safety of apartment buildings across the state. A key component of these reforms is the proposal to grant NSW Fair Trading the authority to enter any apartment building without a warrant if there are reasonable grounds to believe that the owners corporation is failing to maintain common property adequately. - read more
ACCC Halts IAG's Acquisition of RAC Insurance Over Competition Concerns
ACCC Halts IAG's Acquisition of RAC Insurance Over Competition Concerns
11 Dec 2025: Paige Estritori
The Australian Competition and Consumer Commission (ACCC) has recently blocked Insurance Australia Group's (IAG) proposed acquisition of RAC Insurance Pty Limited. This decision underscores the regulator's commitment to maintaining competitive dynamics within Western Australia's insurance market. - read more
Suncorp Reaches Maximum Reinsurance Retention Following Severe Storms in Queensland and NSW
Suncorp Reaches Maximum Reinsurance Retention Following Severe Storms in Queensland and NSW
11 Dec 2025: Paige Estritori
Recent supercell thunderstorms in South East Queensland and northern New South Wales have led to a surge in insurance claims, prompting Suncorp to reach its maximum reinsurance retention of $350 million. The insurer has reported over 10,000 claims related to these events, with approximately half pertaining to home damages and the other half to motor vehicles. - read more


Life Insurance Articles

How to Prepare for a Hassle-Free Life Insurance Claim
How to Prepare for a Hassle-Free Life Insurance Claim
Being prepared when it comes to life insurance claims can make a world of difference. Proper preparation helps you prevent delays and denials, ensuring that your loved ones receive the financial support promised by your policy without unnecessary hold-ups. By paying attention to the details, you can streamline the claims process, giving you and your family peace of mind during what is already a stressful time. - read more
How Life Insurance Provides Financial Security for Your Loved Ones
How Life Insurance Provides Financial Security for Your Loved Ones
Life insurance is a crucial part of any comprehensive financial plan, providing peace of mind that your loved ones will be financially secure in the event of your passing. - read more
Life Insurance Comparison: Key Questions to Ask Your Insurer
Life Insurance Comparison: Key Questions to Ask Your Insurer
Life insurance is a crucial consideration for middle-aged to older Australians. It provides financial security for your loved ones in the unfortunate event of your death. Understanding the various options available is vital to making an informed decision. - read more
The Digital Age of Insurance: Keeping Costs Down with Online Quotes
The Digital Age of Insurance: Keeping Costs Down with Online Quotes
The horizon of the insurance industry has undergone a transformative shift with the advent of digital technology. With a few clicks, consumers can navigate the once-complex world of insurance policies from the comfort of their home. The digital landscape for insurance services offers unprecedented access to information, comparisons, and instant communication, fostering a more empowered insurance client. - read more
Common Mistakes to Avoid When Comparing Life Insurance Policies
Common Mistakes to Avoid When Comparing Life Insurance Policies
Choosing the right life insurance policy is one of the most important decisions for Australians, especially for those who are middle-aged or older. Life insurance provides financial security for your loved ones in the event of your passing, ensuring that they are not burdened with financial hardships. - read more


Start Here !
life insurance
Apply now for your free Insurance assessment and price comparisons!

Start Here

Life Cover Amount:
Postcode:

All quotes are provided free and without obligation by a Specialist from our National Broker referral panel. See our Privacy Statement for more details.


Knowledgebase
Liability Insurance:
Insurance that provides protection from claims arising from injuries or damage to other people or property