Statistics. Life Office Market Report June 2007 (issued 16 October 2007) Australian Prudential Regulation Authority.

Transcription

1 Statistics Life Office Market Report June 27 (issued 16 October 27) Australian Prudential Regulation Authority

2 Disclaimer While APRA endeavours to ensure the quality of this Publication, APRA does not accept any responsibility for the accuracy, completeness or currency of the material included in this Publication, and will not be liable for any loss or damage arising out of any use of, or reliance on, this Publication. Copyright The material in this publication is copyright. You may download, display, print or reproduce material in this publication in unaltered form for your personal, non-commercial use or within your organisation, with proper attribution given to the Australian Prudential Regulation Authority (APRA). than for any use permitted under the Copyright Act 1968, all other rights are reserved. Requests for other uses of the information in this publication should be directed to APRA Public Affairs Unit, GPO Box 9836, Sydney NSW 21. Australian Prudential Regulation Authority (27). Source APRA Life Insurance Market Statistics and Assets Diskette and Life Insurance Trends, June 27. Notes Life Office Market Report is prepared half yearly by the APRA Statistics Unit (Insurance Collections). Life Insurance Statistics Enquiries Fax: Internet Homepage: Australian Prudential Regulation Authority 2

3 Contents Life insurance market statistics highlights - June 27 Highlights 4 Life insurance industry at a glance - year ended June 27 At a glance 5 Premium income - total business Table 1 7 Premium income - ordinary business Table 2 8 Premium income - superannuation business Table 3 9 Australian Prudential Regulation Authority 3

4 Life insurance market statistics highlights - June 27 As at 3 June 27 there were 34 life insurance companies operating in Australia. They managed around $256.6 billion in assets (backing both Australian and overseas policyholders) and received $41.5 billion in premium income (that is, regular in force premiums at the end of the year plus new single premium business) for the year ended 3 June 27. Superannuation business made up 9 per cent of life insurance office assets (backing Australian policyholder liabilities) and accounted for 88 per cent of premiums. Ordinary business of life insurance companies accounted for the remainder of premiums. Around 2 per cent of all superannuation assets are held in life insurance policies. Of the two broad types of life insurance products, regular (or annual) premium and single premium, single premium business now accounts for 82 per cent of life insurance premiums, of which, 97 per cent relates to superannuation business. The top three life insurance groups accounted for 64 per cent of total industry assets backing Australian policyholder liabilities. They also accounted for 75 per cent of new business premiums and 68 per cent of total premiums received. In the same context, the top ten life insurance groups represented 94 per cent of total assets backing Australian policyholders, 96 per cent of new premiums and 94 per cent of total premiums. Foreign owned life insurance companies accounted for 27 per cent of total life office assets backing Australian policyholder liabilities. The foreign owned companies also accounted for 26 per cent of new business premiums relating to Australian policyholders and 29 per cent of total Australian business premiums. Bank owned life insurance companies accounted for 37 per cent of total assets backing Australian policyholders, 38 per cent of new business premiums and 37 per cent of total Australian business premiums. Australian Prudential Regulation Authority 4

5 Life insurance industry at a glance - year ended 3 June 27 Premium movements - Australian business ($ million) # Contractual regular premium business business Business type In force at beginning of Increases in the Claim Decreases in the Maturity Voluntary discontinuance movements In force at end of New single premiums Ordinary 3, ,6 1,86 Super 3, ,486 32,926 Total 7,185 1, , ,492 34,13 Industry structure # Statutory fund assets * Total premiums - Australian business ^ Backing Australian liabilities Backing total liabilities Group ($ billion) Annual change Industry share ($ billion) Industry share Group ($ million) Industry share 1 AMP % 3% % 1 AMP 2 National Aust / MLC % 22% % 2 National Aust / MLC 3 ING / ANZ % 12% % 3 ING / ANZ 4 Colonial / CBA % 8% % 4 Westpac 5 National Mutual / AXA % 7% 2. 8% 5 Colonial / CBA 6 Westpac % 6% % 6 National Mutual / AXA 7 Suncorp Life and Super % 4% 8.9 3% 7 Suncorp Life and Super 8 Aviva 5.6 9% 2% 5.6 2% 8 Macquarie Life 9 Zurich Life 4.2-9% 2% 4.2 2% 9 Tower Life 1 Tower Life 3.2-2% 1% 3.2 1% 1 Aviva Top three groups % 64% % Top three groups Top ten groups % 94% % Top ten groups Foreign owned groups % 27% % Foreign owned groups Bank owned groups % 37% % Bank owned groups Total industry % Total industry of which: overseas assets 32.6 % 13% % 11,515 9,12 7,449 2,53 2,177 1,726 1,521 1, ,84 39,48 12,133 15,355 41,55 28% 22% 18% 6% 5% 4% 4% 3% 2% 2% 68% 94% 29% 37% Notes: # Details on table may not add up to totals due to rounding of figures. * Statutory fund assets are reported at Fair Value. ^ Summation of regular in force premiums at end of and new single premiums. Australian Prudential Regulation Authority 5

6 Life insurance industry at a glance - year ended 3 June 27 (cont.) Product type - Australian business ($ million) # * Assets under management Premium income Policy payments Superannuation Ordinary Total Superannuation Ordinary Superannuation Ordinary Individual business Investment account 6,82 1,427 8, , Investment linked 89,177 4,482 93,659 15, , Allocated annuity - Non-inv. linked Allocated annuity - Inv. linked 25,274 25,274 5,6 4,382 Market-linked annuity annuity - lifetime 3, , annuity - term 5,462 2,275 7, , Group Business Investment account 1, ,12 1,723 1,843 Investment linked 58, ,57 12, , Allocated annuity - Non-inv. linked Allocated annuity - Inv. linked Market-linked annuity annuity New business premium - Australian business # Ordinary Superannuation Single Regular Total Industry Single Regular Total Group ($ million) share Group ($ million) Industry share 1 Westpac % 1 AMP 1, ,77 32% 2 Colonial / CBA % 2 National Aust / MLC 8, ,356 25% 3 ING / ANZ % 3 ING / ANZ 6, ,595 2% 4 National Aust / MLC % 4 Westpac 1,84 5 1,845 5% 5 MetLife % 5 Macquarie Life 1, ,394 4% 6 Tower Life % 6 Colonial / CBA ,81 3% 7 National Mutual / AXA % 7 Suncorp Life and Super % 8 St Andrew's Life % 8 MBF Life % 9 AMP % 9 National Mutual / AXA % 1 Suncorp Life and Super % 1 Aviva % Top three groups (by total) ,96 59% Top three groups (by total) 25, ,658 76% Top ten groups (by total) 1, ,663 89% Top ten groups (by total) 32, ,641 97% Foreign owned groups % Foreign owned groups 7, ,344 25% Bank owned groups % Bank owned groups 12, ,71 38% Total industry 1, ,865 Total industry 32, ,688 Notes: # Details on table may not add up to totals due to rounding of figures. * Conventional, risk business, statutory fund reserves, unallocated profits etc. are not included in this table. Australian Prudential Regulation Authority 6

7 Table 1. Premium income - total business Year ended 3 June 27 ($ thousand) Contractual regular premium business business Product type Individual business In force at beginning of Increases in the Claim Decreases in the Maturity Voluntary discontinuance Conventional 39,929 9,835 1,647 11,365 23,86 3,95 3,16 363,777 Investment account 173,559 4, ,463 19,399 1,948 2, ,56 279,623 Investment linked 582,548 41, ,96 54,62 7,418 3,98 564,674 12,714,351 Allocated annuity - Non-inv. linked 135,422 Allocated annuity - Inv. linked 5,116,264 Market-linked annuity 76,687 annuity - lifetime 26,28 annuity - term 1,419,327 Risk - lump sum 2,563,373 63,68 11,58 6, ,161 6,364 25,324 2,845,126 12,46 Risk - income 1,18,33 228,864 1,545 1, , ,989 1,2,479 29,485 Group business Investment account 284,619 46, ,159 7,82 1, 3,2 26,88 1,482,29 Investment linked 74,61 139, , ,788 1,992-64, ,94 12,353,414 Allocated annuity - Non-inv. linked 45,78 Allocated annuity - Inv. linked 4,822 Market-linked annuity annuity Risk 1,341, , ,26 28,711-31,79 1,63, ,516 Total 7,185,414 1,54,38 16,248 28,116 1,85,67 5,874-52,938 7,492,29 34,12,596 movements In force at end of New single premiums Note: Details on table may not add up to totals due to rounding of figures. Australian Prudential Regulation Authority 7

8 Table 2. Premium income - ordinary business Year ended 3 June 27 ($ thousand) Contractual regular premium business business Product type Individual business In force at beginning of Increases in the Claim Decreases in the Maturity Voluntary discontinuance Conventional 31,551 9,692 1,398 7,79 17,97 3,768 3, ,985 Investment account 24, , ,77 5,964 Investment linked 94,337 3, ,143 8, , ,26 Allocated annuity - Non-inv. linked Allocated annuity - Inv. linked 15 Market-linked annuity annuity - lifetime 3,882 annuity - term 475,27 Risk - lump sum 1,915, ,871 8,936 5,16 257,969 1,47 16,193 2,131,863 12,344 Risk - income 1,14,97 22,859 1,529 1, , ,986 1,191,265 29,485 Group business Investment account Investment linked 29,5 Allocated annuity - Non-inv. linked Allocated annuity - Inv. linked Market-linked annuity annuity Risk 263,128 7, ,697 4,157 1,28 289,715 58,53 Total 3,73, ,534 11,963 15, ,531 1,818 27,839 4,6,67 1,86,374 movements In force at end of New single premiums Note: Details on table may not add up to totals due to rounding of figures. Australian Prudential Regulation Authority 8

9 Table 3. Premium income - superannuation business Year ended 3 June 27 ($ thousand) Contractual regular premium business business Product type Individual business In force at beginning of Increases in the Claim Decreases in the Maturity Voluntary discontinuance Conventional 89, ,576 5, ,791 Investment account 148,592 4, ,27 16,42 1,57 1, , ,659 Investment linked 488,211 38, ,173 6,423 4, ,53 12,531,146 Allocated annuity - Non-inv. linked 135,422 Allocated annuity - Inv. linked 5,116,114 Market-linked annuity 76,687 annuity - lifetime 22,398 annuity - term 944,12 Risk - lump sum 648,39 129,737 2, ,193 4,894 9, , Risk - income 3,936 8,5 16 1, ,214 Group business Investment account 284,61 46, ,159 7,82 1, 3,2 26,79 1,482,184 Investment linked 74,61 139, , ,788 1,992-64, ,94 12,143,914 Allocated annuity - Non-inv. linked 45,78 Allocated annuity - Inv. linked 4,822 Market-linked annuity annuity Risk 1,78, , ,329 24,554-32,359 1,314,13 113,986 Total 3,481, ,54 4,285 12,69 619,536 4,57-8,777 3,486,142 32,926,222 movements In force at end of New single premiums Note: Details on table may not add up to totals due to rounding of figures. Australian Prudential Regulation Authority 9

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