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Super underpins insurance
Superannuation continues to underpin the Australian life insurance industry, according to the latest data released by the Australian Prudential RegulationAuthority (APRA).
The data, covering the 12 months to the end of June, 2006, revealed that total life office statutory fund assets backing Australian policyholder liabilities stood at $226.5 billion at the end of June, this year, representing a decrease of 9.9 per cent since June 30, last year.
It said superannuation assets in life office statutory funds were $201.1 billion at June 30, 2006, representing an increase of 10.8 per cent over the same period in 2005.
“Superannuation assets represent 88.8 per cent of the total assets backing Australian policyholder liabilities in life office statutory funds,” it said.
The APRA data said that total superannuation assets over the year to June 30, 2006, increased by 19.8 per cent, and as a result life office superannuation assets as a percentage of total superannuation assets continued to decline, falling from 23.8 per cent to 22 per cent over the same period.
It said life office premiums over the quarter stood at $12 billion, representing an increase of 43.8 per cent from the March 2006 quarter, and a 30 per cent increase on the June 2005 quarter.
Looking at premiums and policy payments, the APRA data said superannuation business accounted for $10.9 billion in premiums for the quarter — an increase of 32.5 per cent on the June quarter, last year.
It said that for the year to June 30, 2006, superannuation premiums amounted to $35.5 billion — up 13 per cent on the same period a year earlier.
APRA said superannuation business accounted for 90.9 per cent of policy payments relating to Australian policyholders made during the quarter, and also 90.9 per cent for the year to June 30, 2006.
Looking at asset allocation over the period, the APRA data said life statutory fund assets backing Australian policyholder liabilities held in Australia stood at $193.8 billion at the end of June 2006 — a decrease of 0.2 per cent since March 31, 2006, but an increase of 9 per cent over the same period last year.
It said the proportion of statutory fund assets held in equities and units in trusts decreased from 60.4 per cent to 59.2 per cent during the quarter.
AUTHOR
Mike Taylor
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