Australian general insurance industry suffers nearly $2b investment loss in June

This was caused by unrealised losses on interest-bearing investments.

Australia’s general insurance industry recorded an investment loss of $1.94b (AU$2.8b) in June caused by unrealised losses on interest-bearing investments due to increases in bond yields during the March and June quarters.

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In Australia’s recently released statistics for the industry, gross claims expenses were also 6.6% higher in June compared to the same month last year as a result of the New South Wales and South East Queensland floods in the March quarter.

The industry only recorded a minor increase of 0.3% in its net profit in June, driven by a stronger underwriting result, in part reflecting the impact of premium increases across certain classes of business