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APRA Reports Significant Increase in Life Insurance Underwriting Profits

Disability Income Insurance Drives Underwriting Gains in Q4 2025

APRA Reports Significant Increase in Life Insurance Underwriting Profits?w=400

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The Australian Prudential Regulation Authority (APRA) has released data indicating a substantial rise in underwriting gains within the life insurance sector for the December quarter of 2025.
The industry recorded an underwriting gain of $279 million, a significant increase from $36 million in the corresponding period of the previous year.
This surge is primarily attributed to the performance of individual disability income insurance, which saw underwriting profits escalate to $1.95 billion from $150 million.

Conversely, individual lump sum risk reported a loss of $1.65 billion, a considerable increase from the previous year's deficit of $167 million. Group lump sum risk also remained in the red, with a deficit of $105 million compared to $84 million a year earlier.

Overall, the industry achieved a net profit from continuing operations of $261 million, marking a recovery from a neutral position in the corresponding period of 2024. Insurance revenue climbed to $6.15 billion from $5.56 billion, while incurred claims rose to $3.28 billion from $3.12 billion.

For business owners and executives, these figures highlight the dynamic nature of the life insurance market. Understanding the factors influencing underwriting gains and losses can inform decisions regarding business life insurance policies, ensuring alignment with current industry trends and financial stability.

Published:Tuesday, 19th May 2026
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

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Umbrella Policy:
An additional insurance policy that provides extra liability coverage beyond the limits of the insured's primary policies.