The Australian Prudential Regulation Authority (APRA) has released its quarterly aggregate statistics for the insurance sector for the three months to Dec. 31, 2025, covering general, life, and private health insurance performance, capital, and participation indicators. The latest publications on APRA’s website include quarterly general insurance performance statistics, quarterly life insurance performance statistics, quarterly private health insurance performance statistics, and broader private health insurance statistics on membership, coverage, and benefits paid.
In general insurance, industrywide insurance revenue was $20.5 billion in the December 2025 quarter, compared with $20.1 billion in September, $19.7 billion in June, and $19.3 billion in March 2025. Insurance service expenses increased to $19.9 billion for the quarter, from $14.3 billion in September, and $13.9 billion in June. After reinsurance premiums and recoveries, the aggregate insurance service result was $272 million, down from $2.8 billion in September and $2.7 billion in June.
Short‑tail property classes posted a loss of $707 million in the December quarter, following positive results earlier in the year. Long‑tail classes, mortgage business, other direct classes, and inwards reinsurance each remained in positive territory. The industry’s investment result for the quarter was $428 million, lower than $1.1 billion in September and $1.8 billion in June 2025. The net insurance financial result through profit or loss was a loss of $56 million, compared with losses of $282 million in September and $606 million in June.
Profit after income tax was $132 million in the December quarter, following $2.4 billion in March, $2.4 billion in June, and $2.3 billion in September. Total assets were $141.9 billion at Dec. 31, 2025, up modestly over the year, while net assets were $40.7 billion. Return on net assets for the quarter was 0.3%, down from 5.4% in September and 5.9% in June. The total eligible capital base stood at $38.9 billion at year‑end. The prescribed capital amount coverage ratio was 1.77, compared with 1.88 in September and 1.90 in June, and remained above regulatory minimums. The number of licensed general insurance entities was steady at 87 across all quarters of 2025.
APRA’s life insurance statistics report insurance revenue of $6.2 billion in the December 2025 quarter, up from $5.6 billion in December 2024 and $6 billion in September 2025. Insurance service expenses were $6 billion, in line with the higher revenue. The insurance service result was $279 million in the December quarter, compared with $231 million in September, $613 million in June, and $36 million in December 2024. The sector’s investment result was $327 million, down from $1.8 billion in September and $2.1 billion in June 2025. The net insurance financial result through profit or loss turned positive to $321 million in December 2025 after negative results in each of the previous four quarters. Profit from continuing operations after income tax was $261 million, following $284 million in September and $374 million in June.
Total life insurance assets decreased from $133.4 billion at December 2024 to $129.3 billion at December 2025. Net assets were broadly stable at $18.3 billion. Return on net assets for the December quarter was 1.4%, compared with 2% in June and 1.8% in March. The capital base at Dec. 31, 2025, was $15.7 billion. The prescribed capital amount coverage ratio was 1.91, lower than 2.06 in June 2025 and 1.98 in December 2024, but still above required levels. The number of life insurance entities remained unchanged at 23.
In private health insurance, APRA’s performance statistics for the December 2025 quarter show higher premium income, benefit payments, and participation, alongside consistent capital ratios. Industry insurance revenue was $8.6 billion for the quarter, compared with $8.2 billion in December 2024 and $8.2 billion in June 2025. Insurance service expenses were $8.1 billion, resulting in an insurance service result of $468 million, up from $381 million in September and $297 million in June.
Profit from continuing operations after income tax was $417 million in the December 2025 quarter, versus $493 million in September and $431 million in March. The investment result was $164 million, down from $297 million in the prior quarter. Total assets for private health insurers stood at $20.3 billion at Dec. 31, 2025. Total liabilities were $7.2 billion, leaving net assets of $13.1 billion. The sector’s capital base was $12 billion, and the prescribed capital amount coverage ratio was 2.51, close to levels recorded in recent quarters.
APRA’s detailed private health insurance statistics indicate more people held both hospital treatment and general treatment cover as at Dec. 31, 2025. Hospital treatment cover was in place for 12,688,193 people, representing 45.6% of the Australian population and an increase of 54,262 insured persons compared with Sept. 30, 2025. Over the quarter, family policies increased by 7,028 and single policies by 12,253. The largest gross increase in coverage by age band was among people aged 75 to 79, with 8,102 additional insured persons. After allowing for movements between age cohorts, the largest net increase was 25,668 in the 0 to 4 age group.
Lifetime Health Cover data show that 87.2% of adults with hospital cover have a certified age of entry of 30 and therefore pay no LHC loading. At the end of December 2025, 1,165,332 people had a certified age of entry above 30 and were paying loadings, a net increase of 78,833 over the preceding 12 months. Over the same period, 89,893 people had their loading removed after maintaining cover with loading for 10 years.
For general treatment, 15,377,145 people, or 55.3% of the population, had some form of cover at Dec. 31, 2025. This was an increase of 60,236 people over the quarter and 316,354 over the year. General treatment policies rose by 32,590 in the December quarter, including an 18,201 increase in single policies. Within general treatment (ancillary) cover, there was an increase of 48,314 insured persons in the quarter. On a net basis after movements between age bands, the largest increase again occurred in the 0 to 4 age group, with 25,487 more people covered.
During the December 2025 quarter, private health insurers paid $5.36 billion in hospital treatment benefits, 2.9% higher than in the September quarter. This comprised $3.92 billion for hospital services such as accommodation and nursing, $765.17 million for medical services and $676.06 million for medical devices or human tissue items. Average hospital benefits per person rose from $1,510.35 for the year to December 2024 to $1,577.36 for the year to December 2025. The 75 to 79 age band received the highest total hospital benefits, consistent with higher average benefits per person and the size of that cohort.
Ancillary benefits paid in the December quarter totalled $1.80 billion, up 7.7% on the previous quarter. Major categories were dental ($989.93 million), optical ($327.24 million), physiotherapy ($117.83 million), and chiropractic ($68.36 million). Ancillary benefits per person increased from $482.93 in the year to December 2024 to $502.08 in the year to December 2025, with dental accounting for $277.87 per insured person. Insurers funded 1,365,591 hospital episodes and 3,311,678 hospital days in the December 2025 quarter. Episodes were distributed across public hospitals (185,846), private hospitals (920,271), day hospital facilities (74,382), and hospital‑substitute settings. Total hospital episodes were 2.2% higher than in the September quarter, with hospital‑substitute treatment contributing to the increase.
General treatment utilisation reached 28,351,227 services in the quarter, including 14,553,364 dental services, 3,910,744 optical services, 2,830,559 physiotherapy services, and 2,014,261 chiropractic services. Optical services increased significantly compared with September, while chiropractic and physiotherapy service counts declined. Average out‑of‑pocket payments for hospital treatment episodes were $471.29, 1.6% lower than the September quarter but 7.7% higher than a year earlier. The average out‑of‑pocket amount for ancillary services was $62.87, down 1% from September and up 5.6% from December 2024. For medical services where a gap applied, the average out‑of‑pocket payment was $277.36, with the orthopaedic specialty group recording the highest average gap of $847.36.
Members Health Fund Alliance, the peak body for not‑for‑profit and member‑owned health funds, said the December 2025 APRA data is consistent with an increase in participation and benefit payments in private health insurance. The alliance pointed to the 54,262 quarter‑on‑quarter rise in people with hospital cover and the 60,236 increase in extras cover, as well as the level of hospital and extras benefits paid during the quarter, which align with APRA’s aggregate results. Members Health CEO Matthew Koce said the participation trend is significant for policyholders’ decisions. “The growth in participation shows that even in a tight economy, Australians prioritise the security of private health insurance. Members Health funds are dedicated to putting people before profit, ensuring more of every premium dollar goes directly toward care,” Koce said.
Referring to the benefits data, Koce said: “The surge in benefits paid this quarter shows just how much Australians rely on their private health insurance. Members Health funds are stepping up to support members to maintain their health and access the care they need, when they need it – especially at a time when costs across the healthcare system continue to rise.” He also contrasted premium and margin metrics between not‑for‑profit and for‑profit funds. “Members Health funds continue to stand apart by keeping premium increases well below the industry average. Our average premium change for 2026 is 3.62%, comfortably below CPI and significantly lower than the 5.12% average applied by the ‘Big 3’ for-profit insurers. We achieve this by operating on lean net margins of just 2.6%, compared to around 7% among major for-profit funds. While for-profit entities must deliver for overseas investors and shareholders, Members Health funds operate solely for members,” he said. Taken together, APRA’s latest quarterly publications indicate that general, life, and health insurers maintained capital coverage ratios above prescribed levels through the December 2025 quarter, while navigating changes in revenue, claims experience, membership, and service utilisation.
