IDII loses $31.8m during Sept quarter

Individual disability income insurance (IDII) has reported a substantial loss during the September quarter as the life insurance industry’s performance continues to be challenged, according to Australian Prudential Regulation Authority (APRA) data.

The data found IDII lost another $318.8 million during the quarter, totalling a loss of $1.349 billion for the year to September, 2020. APRA said this was primarily driven by loss recognition as adverse claims experience persisted.

The overall life insurance industry reported a net loss after tax of $1.6 billion over the year to September, 2020 – a reduction from the $220 million profit from the previous year. APRA said the deterioration was caused by poor results during the December and March quarters.

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For the 12 months to September, 2020, risk products reported an after-tax loss of $1.5 billion as performance of all risk products deteriorated over the year apart from individual lump sum products.

The second-largest loss after IDII during the quarter was group lump sum at a loss of $95.5 million.

Risk product net profit after tax for the life insurance industry in the year ended 30 September 2020

Risk product
 

Year to Sep 2019 ($m)
 

Year to Sep 2020 ($m)
 

Sep 2020 quarter only ($m)
 

Individual lump sum
 

866.0
 

354.8
 

162.8
 

Individual disability income insurance
 

-1,119.0
 

-1,349.0
 

-318.8
 

Group lump sum
 

8.1
 

-403.2
 

-95.5
 

Group disability income insurance
 

-173.1
 

-147.9
 

35.5
 

Total
 

-418.0
 

-1,545.3
 

-216.0
 

Source: APRA




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