Life insurers' post-tax profits have fallen $300 million in the year to 30 June 2014, on the back of poor performances of group products, the Australian Prudential Regulation Authority's Quarterly Report reveals.
The report found that annual post-tax profits had dropped by 11.8 per cent in the year to 30 June 2014 ($2.3 billion), compared with the same period in 2013 ($2.6 billion).
APRA figures showed that group risk products created a net after tax loss of $16 million, with revenue of $1.3 billion gained from the products nullified by expenses of the same amount.
While profits fell across the sector by $300 million over the last year, life insurers' revenue increased to $45.8 billion in 2014, from $45 billion 2013, total expense increased by 1.2 billion over the 12 months to 30 June 2014.
Operating costs also contributed to the fall in profits, going up from $7.4 billion for the year to 30 June 2013 to $8.1 billion this year.
