APRA Releases Quarterly Private Health Insurance Statistics for June 2022

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The Australian Prudential Regulation Authority (APRA) has released its quarterly Private Health Insurance (PHI) publications for the June quarter of 2022.

The publications provide aggregated industry summaries of key financial and membership statistics for the private health insurance industry.

The industry reported lower after-tax net profit in the year through June 2022 (down 28.0% to $1.1 billion) from a year earlier. This decrease was due to lower investment income, partially offset by higher insurance profits.

The increase in insurance profits was driven by a combination of modest claims due to COVID-19 restrictions and movements in insurers’ deferred loss liabilities (DCL1), partially offset by measures taken by private health insurers (i.e. premium rate increase deferrals, retrocessions to policyholders) to meet their commitments not to profit from COVID-19 . Premium income increased by 3.5% in the year to June 2022, mainly reflecting solid membership growth, while fund benefits (claims) increased slightly. These trends translated into stronger gross and net margins, which increased to 16.9% and 7.0% respectively.

Investment income fell from $604 million in the year to June 2021 to -$293 million in the year to June 2022.

The number of members in hospital treatment increased by 2.1% or 235,699 people during the year. The growth was widespread, with an increase of 2.4% or 112,942 people and an increase of 1.8% or 74,294 people among the younger population (insured persons aged 20-49).

Key performance indicators for the industry during the year ended:

June 2021

June 2022

Change (annual)

Premium income

$25.7 billion

$26.6 billion

3.5%

Fund services (applications)

$22.0 billion

$22.1 billion

0.6%

Gross margin

14.5%

16.9%

2.4pp

The net margin

5.0%

7.0%

2.0pp

Net investment income

$603.9 million

-$292.5M

Net profit after tax

$1.5 billion

$1.1 billion

-28.0%

Copies of the June 2022 quarterly publications are available on the APRA website at: Private Health Insurance Quarterly Statistics.


1 Claims are claims reported in the financial statements in accordance with applicable accounting standards, including claims incurred but not reported and claims processed but not yet paid which are accounted for on an accrual basis. Other benefits statistics in the Membership and Benefits and Benefits Trends sections of this publication refer to benefits paid and reported in cash. The DCL was waived by insurers to meet the cost of postponed procedures during the pandemic.

/Public release. This material from the original organization/authors may be ad hoc in nature, edited for clarity, style and length. The views and opinions expressed are those of the author or authors. See in full here.
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