Group lump sum is the only risk product to experience losses in the September 2021 quarter at a loss of $122.6 million.
However, the quarter saw risk products report an overall profit of $235.6 million, according to Australian Prudential Regulation Authority (APRA) data.
The net profit after tax for the life insurance industry was at $1.4 billion over the year to September 2021, while group lump sum was still in the negative at a loss of $97.5 million.
Despite substantial losses over prior periods, individual disability income insurance (IDII) reported a profit of $144.9 million during the quarter, and a profit of $124 million over the year to September 2021. This followed substantial losses of $1.4 billion during the year prior.
“Group lump sum and group disability income Insurance returned losses for the 12 months ended September 2021, however, the losses were at a significantly lower level in comparison to the previous year,” APRA said.
During the September 2021 quarter, individual lump sum made a profit of $186.7 million, group disability income insurance also experienced a profit of $26.7 million.
Over the year to September 2021, all risk products combined had a profit of $439.1 million with individual lump sum contributing $427 million.
“Risk products demonstrated significant improvements for the 12 months ended September 2021 as they returned a combined profit of $439.1 million, a $2 billion improvement in comparison to the prior year,” APRA said.
“The overall performance of the life insurance industry is improving. The net profit after tax for the industry was $1.4 billion for the year ended September 2021, a significant improvement from the previous year primarily owing to improved investment market performance.”