Australia’s health insurance doubles in first semester – APRA

Investment income rebounded year-on-year, driving overall earnings growth.

The private health insurance (PHI) industry reported a net profit after tax of AUS$2.2b for the year ending 30 June 2023, statistics from the Australian Prudential Regulation Authority (APRA) showed.

The main driver behind the result was a recovery in investment income to $702.4m for the year, which reflected increases in the value of equity portfolios and higher interest income. 

Premium revenue in the period increased by 3.3% predominantly due to membership growth. Claims costs increased over the period by 2.4%, which reflected higher levels of utilisation of services.

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Hospital treatment membership increased by 2.3%, or 270,160 persons in the year ending June 2023. Membership in the 50+ age group increased by 2.2%, or 102,412 persons, and membership among the younger population (insured persons aged 20 to 49) increased by 2.9%, or 120,966 persons.