In brief: The life insurance industry has been losing profit margins for the past 12 months, losing 13.9% compared to last year.
The full story
Net profits after taxes are nearly 14% lower year-on-year for the past 12 months in Australia. From 30 June 2010 to 30 June 2011, profit was $2.76 billion compared to $3.21 for the same period 2009-2010. The numbers have steadily dropped over that 12 month period rather than having large drops in any single month.
Assets and liabilities were good, however, with the industry showing a higher number of assets than liabilities, despite the losses.
Overall, losses are mainly in individual coverages with rates and number of new policies dropping as the market competes to stay afloat in uncertain economic times. Individual risk products make up about 90% of the total industry's revenues.
Summing up
The situation in Australia is not unique in the West with most western nations showing drops for the past year or two. Asian markets are growing, however.
Photo credits: Stock
