Australia: Insurers' profits expected to be hit by sluggish top line and weak investment gains
Source: Asia Insurance Review | Dec 2020
Australian life and non-life insurers’ earnings are likely to fall due to top line pressure and weaker investment revenue according to a new report from Fitch Ratings on the country’s insurance sector.
Premium growth is expected to be sluggish due to lower economic activity and various customer relief packages rolled out by insurers. Weak economic conditions are also likely to impede primary non-life insurers’ ability to pass on higher reinsurance costs, which have risen due to recent catastrophe losses. The economic fallout will also add pressure to the ongoing repricing of life insurers’ individual disability insurance portfolios. A