Australian insurers report $6.1b profit on benign hazard period: KPMG

Profits before investment income and after taxes were $3.1b.

Australian general insurers recorded a profit of $6.1b in 2024, which was driven by a benign natural hazard period, premium price increases, COVID-19 business interruption provision releases, and positive investment market returns, according to KPMG’s General Insurance Insights 2025 report.

Profits before investment income and after taxes were $3.1b, compared to the previous five-year average of $0.97b. Investment income after taxes reached $3.0b, up from a previous average of $1.03b.

Natural hazard losses dropped to $566m in 2024 from $2.36b in 2023. 

Only two significant events were recorded: the Valentine’s Day Storms in Victoria and Severe Weather in New South Wales and Queensland in April. 

No catastrophes were declared in 2024, and natural hazard claims were 49,000 compared to 143,900 the previous year. 2024 also marked the first year since 2019 that insurers achieved profitable underwriting results in householders' portfolios.

Gross written premium growth was strong across most insurance products, mainly due to rate increases reflecting disaster risk pricing, higher reinsurance costs, moderating claims inflation, and supply chain pressures.

COVID-19 business interruption claims provisions were significantly reduced following a favourable Federal Court judgment in September 2024, which supported insurers' applications to declass COVID-19-related class actions.

The industry also continued to address regulatory compliance issues, making remediation payments after consumers were found to have been overcharged $815m due to pricing promise failures identified by the Australian Securities and Investments Commission (ASIC).