POWERED BY MOMENTUM MEDIA
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.
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
Recommended for you
The $135 billion fund has transitioned away from TAL Life Insurance following an “extensive tender process”.
The $80 billion fund is facing legal action over allegedly signing up new members to income protection insurance by default without active member consent.
In a Senate submission, the Financial Services Council has once again called for further clarification that the government will assess the consumer outcomes of group insurance against the enshrined objective of superannuation.
TAL has launched a digital solution TAL Connect for its superannuation fund partners that links super and insurance for members, with Aware Super as its launch partner.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI First Close USD
73.88 3 y p.a(%)
2
Hills International
63.66 3 y p.a(%)
3
Acadian Global Equity Long Short Class A
36.33 3 y p.a(%)
4
CFS FC Acadian Global Equity Long Short
35.96 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
32.23 3 y p.a(%)
Add new comment