June returns improved sharply from A$637m in March as expenses declined.
Australia’s general insurance industry reported a sharp improvement in earnings in the June 2026 quarter, with profit after income tax rising to $1.6b (A$2.253b).
The result was up from $458.3m (A$637m) in the March quarter and was close to the $1.6b (A$2.265b) profit recorded in September 2025, according to Australian Prudential Regulation Authority data.
Profit had fallen to $96.4m (A$134m) in the December 2025 quarter.
The insurance service result rose to $1.7b (A$2.399b) in June from $894.2m (A$1.243b) in March.
Insurance revenue increased slightly to $14.7b (A$20.376b) from $14.5b (A$20.112b), whilst insurance service expenses fell to $11.0b (A$15.353b) from $11.8b (A$16.407b).
Short-tail property classes made the largest contribution to the insurance service result, increasing to $897.1m (A$1.247b) from $472.7m (A$657m) in March.
Long-tail classes contributed $260.4m (A$362m), mortgage business contributed $84.2m (A$117m) and inwards reinsurance contributed $341.0m (A$474m).
Investment earnings also supported the June-quarter result. The industry recorded an investment result of $1.4b (A$1.968b), up from $384.2m (A$534m) in March and $307.9m (A$428m) in December.
This was partly offset by a $444.6m (A$618m) net insurance financial loss through profit or loss, compared with a $131.0m (A$182m) loss in March.
Total assets edged up to $104.1b (A$144.648b) at the end of June from $103.9b (A$144.370b) in March. Net assets increased to $30.9b (A$42.899b) from $29.6b (A$41.158b), whilst the return on net assets rose to 5.4% from 1.6%.
The industry’s total eligible capital base increased to $29.6b (A$41.141b) from $28.3b (A$39.394b). Its prescribed capital amount coverage ratio rose to 1.86 times from 1.81 times, although it remained slightly below the 1.88 recorded in September 2025.
APRA’s data covered 88 entities at the end of June, unchanged from the March quarter.
($1.00 = A$1.39)