APRA Reports Significant Increase in Life Insurance Underwriting Profits
Disability Income Insurance Drives Underwriting Gains in Q4 2025
2
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
The Australian Prudential Regulation Authority (APRA) has released data indicating a substantial rise in underwriting gains within the life insurance sector for the December quarter of 2025.
The industry recorded an underwriting gain of $279 million, a significant increase from $36 million in the corresponding period of the previous year.
This surge is primarily attributed to the performance of individual disability income insurance, which saw underwriting profits escalate to $1.95 billion from $150 million.
Conversely, individual lump sum risk reported a loss of $1.65 billion, a considerable increase from the previous year's deficit of $167 million. Group lump sum risk also remained in the red, with a deficit of $105 million compared to $84 million a year earlier.
Overall, the industry achieved a net profit from continuing operations of $261 million, marking a recovery from a neutral position in the corresponding period of 2024. Insurance revenue climbed to $6.15 billion from $5.56 billion, while incurred claims rose to $3.28 billion from $3.12 billion.
For business owners and executives, these figures highlight the dynamic nature of the life insurance market. Understanding the factors influencing underwriting gains and losses can inform decisions regarding business life insurance policies, ensuring alignment with current industry trends and financial stability.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
In a landmark decision, Australia's High Court has unanimously ruled that marine insurers cannot limit their liability for wreck removal and pollution clean-up claims. This ruling stems from the case involving Standard Club UK Ltd, the protection and indemnity (P&I) insurer for CSL Australia, following a 2022 collision at the Port of Devonport, Tasmania. - read more
QBE, in collaboration with insurtech firm Aurora, has launched a fully automated underwriting system for Yacht Protection & Indemnity (P&I) insurance. This innovative platform streamlines the underwriting process, handling tasks from broker submissions to policy issuance without manual intervention. - read more
Austal Limited has been awarded a $4 billion contract by the Australian Department of Defence to construct eight Landing Craft Heavy (LCH) vessels. This project, based on the Damen LST100 design, will be executed at Austal's facilities in Henderson, Western Australia, with construction commencing in 2026 and completion expected by 2038. - read more
Insurance Australia Group (IAG) has successfully integrated RACQ Insurance into its 2026 catastrophe reinsurance program. This strategic move is designed to bolster the company's capacity to manage catastrophic events and provide enhanced coverage for Australian policyholders. - read more
Apply now for your free Insurance assessment and price comparisons!
All quotes are provided free and without obligation. We respect your
privacy.
Knowledgebase
Incontestability Clause: A provision in a life insurance policy that prevents the insurer from voiding coverage due to a misstatement by the insured after a certain period.
No comments yet. Be the first to share your thoughts.