Book Reviews | Gordon Campbell | Scoop News | Wellington Scoop | Community Scoop | Search

 

AUS: Insurance and Superannuation Trends


AUS: Insurance and Superannuation Trends - June 1999

Total superannuation assets stood at $408.6 billion as at 30 June this year. This represented a growth rate of 5.4% for the June quarter, or 14% during 1998-99.

This is one of the key statistics in APRA Insurance and Superannuation Trends released today by the Chief Executive Officer, Graeme Thompson.

Superannuation growth during the June quarter was considerably increased by a number of one-off exceptional employer contributions made to some public sector superannuation funds, totalling approximately $8.4 billion. These contributions had to do with replacing previously unfunded liabilities and transferring members from defined benefit to accumulation schemes.

Other statistics in the June quarter Trends show that:

Contributions rose by 101.3% in the June 1999 quarter over the June 1998 quarter, or 39.5% during 1998-99, an increase from $33.9 billion to $47.3 billion for the year.

Member contributions continued their strong growth. They increased by 24% over the previous year to $16.1 billion.

Net contributions (ie. contributions less benefits) totalling $23.6 billion - a rise of $11.0 billion or 87.5% - flowed into superannuation during 1998-99.

As outlined in Trends, self-managed or DIY funds, industry funds and retail fund assets were the fastest growing market segments during 1998-99, all growing by 23%.

In comparison, reflecting continuing consolidation and rationalisation in how companies are managing their superannuation, corporate fund assets grew by only 8% during the year, while public sector fund assets grew by 20% due in part to exceptional employer contributions in the June quarter.

Life company statutory fund assets also showed strong growth, increasing by 1.8% during the quarter, or 10.7% during the year to stand at $168.5 billion by the end of June 1999. Reinforcing the industry focus on superannuation business, superannuation premiums amounted to $33.7 billion for 1998-99, up 24.0% (or $6.5 billion) on the previous 12 months. Superannuation premiums now represent 86.1% of total life company premiums.

Total assets of private sector general insurers were $55.6 billion at the end of June 1999, an increase of 0.9% during the previous 12 months. This slow growth is in part due to the revocation of the licenses of 12 workcover insurance companies during the June quarter. These revocations were associated with legislative change in Victoria. During 1998-99 premium revenue increased by 3% over the previous year to $14.6 billion, while claims expense increased by 12% over the previous year to $13.3 billion. The increase in claims expense primarily resulted from losses incurred in the reinsurance market.

APRA Insurance and Superannuation Trends is published on the APRA web site, (http://www.apra.gov.au) at the end of each quarter.

Other attachments to this statement include the 'Superannuation survey highlights - June 1999', which provides additional information on the manner of investment and asset allocation of superannuation; while 'Superannuation industry at a glance' provides a snapshot of the current structure of the superannuation industry.

© Scoop Media

 
 
 
World Headlines

 

Euro-Med Monitor: Sudan Military Coup Shatters Democratic Path, Threatens With Authoritarian Rule Return
The Sudanese army's seizure of power in the country diminishes the hard-won human rights and civil gains achieved after the December 2018 protests, Euro-Mediterranean Human Rights Monitor said today in a statement...More>>


Weather: Pacific Likely To Experience Double Dip La Niña Episode

The Pacific is likely to experience a rare occurrence of what is called a double dip La Niña in the coming months, Climate models and predictions tools used by Pacific National Meteorological and Hydrological services (NMHSs) show...
More>>

CNS: Will India's 1 Billion Vaccination-dose-milestone Be Catalytic For Vaccinating All?

On 21 October 2021, India crossed its milestone of administering over 1 billion (100 crores) doses within 278 days since it began the vaccination rollout (on 16th January 2021)... More>>

Focus On: UN SDGs


Pacific: Young Climate Leaders Call For Urgent Climate Action Ahead Of COP26

Eight Pacific Young Climate Leaders shared their experiences of climate resilience and activism in an inaugural dialogue with the Pacific Islands Forum Secretary General, Mr Henry Puna on 21 October 2021... More>>

UN: With Clock Ticking, Sustainable Transport Key To Global Goals
From electric cars and buses to zero-carbon producing energy sources, new and emerging technologies along with innovative policy changes, are critical for combating climate change. But to be effective, they must ensure that transport strategies benefit everyone, including the poorest... More>>


COP26: 7 Climate Action Highlights To Remember

A September to remember, a pivotal month for climate action commitments. From the United Nations General Assembly week to the final pre-COP meeting, last month was an important time to build momentum... More>>