The general insurance industry of Australia has reported a huge increase in profits in the second quarter of 2026, with profit after income tax rising to A$2.253bn ($1.6bn) from A$637m in the first quarter.
Data from the Australian Prudential Regulation Authority covering 88 entities revealed that the result was close to the A$2.265bn profit recorded in 3Q25, but had fallen in 4Q25 to A$134m.
Insurance revenue increased slightly to A$20.376bn from A$20.112bn, whilst insurance service expenses fell to A$15.353bn from A$16.407bn. Short-tail property classes made the largest contribution to the insurance service result, increasing to A$1.247bn from A$657m in 1Q26.
Long-tail classes contributed A$362m, mortgage business contributed A$117m and inwards reinsurance contributed A$474m. The industry recorded an investment result of A$1.968bn, up from A$534m in 1Q26 and A$428m in 4Q25.
Total assets increased to A$144.648bn at the end of 2Q26 from A$144.370bn in 1Q26. Net assets increased to A$42.899bn from A$41.158bn, whilst the return on net assets rose to 5.4% from 1.6%. The industry’s total eligible capital base increased to A$41.141bn from A$39.394bn.