Income Insurance Australia :: News
SHARE

Share this news item!

Australian Insurers Brace for Earnings Slowdown After Record Profits

Navigating the Shift from Peak Profitability to Sustainable Growth

Australian Insurers Brace for Earnings Slowdown After Record Profits?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

After achieving a return on equity (ROE) of 19% in the last financial year-the highest in a decade-Australian general insurers are preparing for a moderation in earnings growth.
Consultancy firm Finity projects that the industry's ROE will decrease by six percentage points to 13% in the current financial year, aligning with the target range of 10% to 15%.

This anticipated slowdown is attributed to several factors, including a moderation in premium growth and softening market conditions in certain commercial insurance classes. Finity's annual sector review indicates that while gross written premium (GWP) grew by 6% in the previous year, this growth rate is expected to slow to 4.5% in the current year. Personal lines GWP, which saw a 9% increase, is projected to ease to 6%, reflecting more moderate claims inflation.

For real estate professionals, this shift in the insurance industry's financial landscape may have implications for the availability and pricing of insurance products. As insurers adjust to changing market conditions, it's essential for real estate agents to stay informed about potential changes in coverage options and premium rates. Proactive engagement with insurance providers can help ensure that real estate businesses maintain adequate protection against evolving risks.

In conclusion, while the insurance industry's recent profitability highlights its resilience, the forecasted earnings slowdown suggests a period of adjustment. Insurers and policyholders alike should remain vigilant, adapting to market dynamics to sustain financial stability and comprehensive coverage.

Published:Thursday, 20th Nov 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Australian Insurers Report Record Profits Amid Public Scrutiny
Australian Insurers Report Record Profits Amid Public Scrutiny
20 Nov 2025: Paige Estritori
The Australian general insurance industry has reported an after-tax profit of $7.3 billion for the last financial year, marking its strongest performance in over a decade. This significant profit surge is attributed to lower-than-expected catastrophe losses and robust investment returns. However, this financial success has sparked public discourse regarding the fairness of pricing practices and the overall perception of the industry. - read more
ASIC Highlights Compliance Risks in Insurers' Claims Handling Practices
ASIC Highlights Compliance Risks in Insurers' Claims Handling Practices
20 Nov 2025: Paige Estritori
The Australian Securities and Investments Commission (ASIC) has identified significant weaknesses in the claims handling practices of several insurers, raising concerns about potential compliance breaches. The regulator's recent review points to deficiencies in the oversight of expert reports and inadequate communication with consumers regarding cash settlement offers. - read more
Australian Insurers Brace for Earnings Slowdown After Record Profits
Australian Insurers Brace for Earnings Slowdown After Record Profits
20 Nov 2025: Paige Estritori
After achieving a return on equity (ROE) of 19% in the last financial year-the highest in a decade-Australian general insurers are preparing for a moderation in earnings growth. Consultancy firm Finity projects that the industry's ROE will decrease by six percentage points to 13% in the current financial year, aligning with the target range of 10% to 15%. - read more
Rising Liability Costs Put Pressure on Australia's Leisure Sector
Rising Liability Costs Put Pressure on Australia's Leisure Sector
20 Nov 2025: Paige Estritori
The Australian Amusement Leisure & Recreation Association (AALARA) has raised concerns over the escalating costs of public liability insurance, which are placing significant pressure on amusement and recreation operators across the country. This warning follows the Insurance Council of Australia's (ICA) recent call for reforms to civil liability laws. - read more
New Report Highlights Insurance Challenges for Australian Small Businesses
New Report Highlights Insurance Challenges for Australian Small Businesses
20 Nov 2025: Paige Estritori
A recent report by the Australian Chamber of Commerce and Industry (ACCI) has revealed that small businesses in Australia are paying up to 30% more for their insurance premiums due to taxes and levies imposed by state and territory governments. This financial burden is leading to a worrying trend where an increasing number of small businesses are either underinsuring or forgoing insurance altogether. - read more
Click for more Insurance News


Life Insurance Articles

Income Insurance: Common Misunderstandings that Could Cost You
Income Insurance: Common Misunderstandings that Could Cost You
When life throws unexpected challenges your way, income insurance can be a financial lifesaver. Essentially, it's a policy designed to replace a portion of your income if you're unable to work due to illness or injury. Imagine not having to worry about bills piling up while you focus on recovery. That's the peace of mind income insurance aims to provide. - read more
Income Protection Insurance: A Must-Have for Australian Adults
Income Protection Insurance: A Must-Have for Australian Adults
Insurance is a crucial component of financial planning. While many Australians understand the importance of life insurance, there's another vital type of coverage that often gets overlooked: income protection insurance. - read more
Preparing for the Unexpected: Why Income Protection is Essential for Financial Security
Preparing for the Unexpected: Why Income Protection is Essential for Financial Security
Life's unpredictability can often bring unforeseen challenges, particularly when it comes to our finances. One day you might be climbing the career ladder, the next you could find yourself unable to work due to illness or injury. This is where income protection insurance steps in, serving as a financial safety net that ensures you can continue to meet your living expenses, even when the unexpected happens. - read more
Breaking Down Common Income Protection Insurance Terms
Breaking Down Common Income Protection Insurance Terms
Income protection insurance is designed to provide financial support if you're unable to work due to illness or injury. It aims to replace a portion of your income during such times, ensuring you can maintain your lifestyle and meet financial obligations. - read more
Income Protection Insurance: Balancing Cost with Adequate Coverage
Income Protection Insurance: Balancing Cost with Adequate Coverage
Income protection insurance is a critical safety net for anyone who relies on a steady paycheck to meet their financial obligations and maintain their lifestyle. It offers a replacement income if you are unable to work due to illness or injury, ensuring that your financial responsibilities can be met even when you're not at your earning best. In today's fast-paced world, income protection has become an essential consideration for the modern working individual. - read more


Start Here !
disability protection
Apply now for your free Insurance assessment and price comparisons!

Start Here

Monthly Income Benefit:
Postcode:

All quotes are provided free and without obligation by a specialist from our national broker referral panel. See our privacy statement for more details.