The Australian Prudential Regulation Authority (APRA) has published its quarterly insurance statistics for the June 2025 quarter, covering general, life, and private health insurance sectors.
The reports provide insights into premiums, claims, capital adequacy, and industry trends.
Australia’s general insurance sector reported total revenue of $19.7 billion for the June quarter, slightly higher than $19.3 billion in March.
Claims and related expenses reached $13.9 billion, down from the prior quarter’s $17.7 billion, while the net insurance service result increased to $2.67 billion.
Short-tail property insurance contributed $1.38 billion to service results, while long-tail classes recorded $469 million.
Inwards reinsurance activity generated $446 million. Investment income added $1.84 billion for the quarter.
The sector’s total assets were $140.9 billion, with net assets of $41.2 billion and a return on net assets of 5.8%.
The total eligible capital base rose to $40.8 billion, resulting in a prescribed capital amount coverage ratio of 1.89, reflecting continued solvency across insurers.
Industry analysis by GlobalData forecasts that Australia’s general insurance market will expand at a compound annual growth rate of 8.8%, reaching $144.5 billion by 2029.
Growth drivers include increased coverage demand due to climate-related risks, inflation, and healthcare-related products.
Premiums for 2025 are projected at $102.8 billion, representing an 8.6% year-on-year increase.
Life insurers reported revenue of $5.9 billion in the June quarter, with claims and service expenses of $5.2 billion.
Insurance service results reached $613 million, supported by $2.12 billion in investment returns.
The net insurance financial result through profit or loss was negative at $1.36 billion, while profit after income tax was $360 million.
Net assets for life insurers were $18.25 billion, with a return on net assets of 2.0%.
Capital bases stood at $16.46 billion, producing a prescribed capital amount coverage ratio of 2.06.
GlobalData projects life insurance gross written premiums to grow from $26.2 billion in 2025 to $30.5 billion by 2029, reflecting moderate expansion driven by an aging population, increased financial awareness, and recovering household incomes.
Private health insurance revenue for the June 2025 quarter reached $8.2 billion, showing a continued upward trend from $8.1 billion in March and $7.8 billion in December 2024.
Insurance service expenses for the quarter were $7.9 billion, resulting in an insurance service result of $293 million.
Investment income for the sector was $387 million, and profit after tax was $493 million. The sector’s total assets stood at $21.4 billion, with net assets at $13.0 billion. The prescribed capital amount coverage ratio was 2.55.
Private health insurance membership continued to rise, according to APRA. Hospital cover grew by 94,913 members in the quarter, surpassing 12.5 million people. Meanwhile, extras cover, including dental, optical, and physiotherapy, increased by 91,954 to over 15.2 million members.
Members Health Fund Alliance, representing Australia’s not-for-profit and member-owned health funds, noted the ongoing significance of private health coverage.
CEO Matthew Koce said funds paid more than $6.7 billion in benefits since March 2025, averaging $1.28 billion monthly to private hospitals for procedures.
Koce also highlighted the impact of Lifetime Health Cover (LHC) loading, a 2% annual penalty for delaying private hospital insurance after age 30, capped at 70%.
“At the end of the June 30, 2025, quarter, a staggering 1,111,652 people were subject to LHC loading. This is a net increase of 88,304 over the preceding 12 months,” he said. “Young people about to hit their thirties and looking to avoid LHC loading should look for the Members Health fund tick when considering which health fund to join.”
