Total revenue for the year more than doubled, from $20.6 billion in 2011/2012 to $45 billion, with the $7.7 billion in the June quarter more than double the $3 billion in the prior corresponding period.
However, expenses also increased dramatically, from $16.5 billion to $40.3 billion. Expenses comprised net policy expenses, operating expenses, effective movement in net policy liabilities, change in policy owner retained profits and other expenses.
Most remained fairly steady with the exception of effective movement in net policy liabilities, which jumped from $2.9 billion in 2011/2012 to $25.6 billion.
According to APRA, this is calculated as the “movement in net policy liabilities less deposits received, plus withdrawals of deposits, plus non-premium related fees for management services, plus movements in the liability for deferred fee revenue, less movements in the liability for deferred acquisition costs”.
This was partially offset by a jump in investment revenue from $6.9 billion to $30 billion.
The June 2013 quarter saw a large decrease in profit to $391 million – less than half that seen in the previous June quarter of $850 million, and also a significant decrease on the $723 million from the March 2013 quarter.
Net profit after tax for the quarter was $27 million. Individual risk products contributed $176 million profit but group risk products lost significantly, with losses of $148 million for the quarter.
