Insurance companies: Income statement (J10)
This data summarises the revenues and expenses of New Zealand’s insurance industry.
Data files
| Previous years: | Quarterly: | |||||
|---|---|---|---|---|---|---|
| Sep 2020 | Sep 2021 | Dec 2021 | Mar 2022 | Jun 2022 | Sep 2022 | |
| Revenue ($m) (12 month running total) | ||||||
| Gross earned premium | 10,815 | 11,574 | 11,985 | 12,107 | 12,354 | 12,542 |
| Life | 2,384 | 2,567 | 2,670 | 2,619 | 2,646 | 2,557 |
| Non-life | 8,431 | 9,007 | 9,315 | 9,488 | 9,708 | 9,984 |
| Outwards reinsurance premium | 3,528 | 3,521 | 3,658 | 3,634 | 3,724 | 3,790 |
| Net earned premium | 7,287 | 8,053 | 8,327 | 8,473 | 8,630 | 8,751 |
| Life | 1,165 | 1,496 | 1,550 | 1,532 | 1,543 | 1,454 |
| Non-life | 6,122 | 6,557 | 6,777 | 6,942 | 7,087 | 7,297 |
| Other insurance revenue & commission | 729 | 750 | 791 | 921 | 972 | 1,238 |
| Total insurance revenue | 8,016 | 8,803 | 9,118 | 9,395 | 9,602 | 9,989 |
| Total investment revenue | 736 | 158 | 97 | -130 | -978 | -1,029 |
| Other revenue & commission | 39 | 117 | 102 | 84 | 76 | 82 |
| Total revenue | 8,791 | 9,079 | 9,317 | 9,349 | 8,700 | 9,041 |
| Expenses ($m) (12 month running total) | ||||||
| Gross claims / benefits | 6,621 | 7,085 | 7,264 | 7,497 | 7,458 | 7,639 |
| Gross policy expense life | 1,453 | 1,535 | 1,566 | 1,543 | 1,534 | 1,515 |
| Gross claims expense non-life | 5,168 | 5,550 | 5,699 | 5,954 | 5,924 | 6,124 |
| Outwards reinsurance & other recoveries | 1,970 | 1,966 | 2,133 | 2,229 | 2,087 | 2,124 |
| Net claims / benefits | 4,651 | 5,120 | 5,132 | 5,268 | 5,371 | 5,514 |
| Net policy expense life | 947 | 982 | 995 | 977 | 1,020 | 1,003 |
| Net claims expense non-life | 3,704 | 4,138 | 4,137 | 4,291 | 4,351 | 4,511 |
| Movement in technical items | -254 | -227 | -200 | -291 | -823 | -643 |
| Other insurance expenses & commission | 3,068 | 3,096 | 3,220 | 3,246 | 3,343 | 3,446 |
| Total insurance expenses | 7,465 | 7,988 | 8,151 | 8,224 | 7,891 | 8,317 |
| Total investment expenses | 21 | 29 | 29 | 29 | 26 | 23 |
| Other expenses | 73 | 38 | 54 | 59 | 48 | 48 |
| Total expenses | 7,559 | 8,055 | 8,234 | 8,311 | 7,965 | 8,389 |
| Profit ($m) (12 month running total) | ||||||
| Before tax | 1,231 | 1,024 | 1,083 | 1,038 | 735 | 652 |
| After tax | 890 | 843 | 902 | 877 | 673 | 621 |
| Key ratios | ||||||
| Gross loss ratio non-life (%) | 61.3 | 61.6 | 61.2 | 62.8 | 61.0 | 61.3 |
| Net loss ratio non-life (%) | 60.5 | 63.1 | 61.0 | 61.8 | 61.4 | 61.8 |
| Net combined ratio non-life (%) | 96.4 | 97.6 | 96.1 | 96.3 | 96.1 | 96.7 |
Impact of NZ IFRS17 on J10 and J20 publication
A new financial reporting standard, NZ IFRS 17, comes into mandatory effect for insurers from the start of their financial year, commencing on or after 1 January 2023. NZ IFRS 17 replaces NZ IFRS 4 and changes underlying accounting concepts which underpin financial and solvency reporting.
The new standard will impact the publication of our current suite of insurance tables J10 & J20 from the 2023 reporting periods, starting from March 2023 (scheduled for publication in June 2023). The reporting quarters of Sep-22 and Dec-22 will not be affected.
Further information relating to any changes to published insurance data will be released in due course.
For more information related to insurance data upgrade please see Insurance data upgrade - Reserve Bank of New Zealand - Te Pūtea Matua (rbnz.govt.nz)
The final publication of the J10 and J20 will be on 29 March 2023.
This publication will include data for the quarter ended 31 December 2022.
If you have any questions please email [email protected]
The data: coverage, periodicity and timeliness
Coverage characteristics
The Insurance Financial Performance statistics contains the revenue and expense of New Zealand’s insurance industry. Data is collected from the Quarterly Insurer Survey (QIS), which collects data from insurance companies with:
- Gross annual premium $50+ million at financial year end; or
- Total assets $500+ million at financial year end
but excluding reinsurers with no NZ primary insurance.
The standard QIS covers 28 out of 88 insurers and reinsurers accounting for just under 90% of assets and premiums of the regulated insurance industry as a whole.
The QIS excludes reinsurers with no New Zealand primary insurance. It also does not cover the Earthquake Commission and the Accident Compensation Corporation, as these organisations have their own enabling legislation and we do not supervise them.
More information regarding the regulated insurance industry can be found in the Insurers section.
Periodicity
Quarterly
Timeliness
We publish data approximately three months after the reference quarter.
Access by the public
Statistics release calendar
The statistics release calendar provides a long-term plan of scheduled releases. We update and release it on the first working day of the month.
View the statistics release calendar
Integrity
Dissemination of terms and conditions under which official statistics are produced, including confidentiality of individual responses
We are the prudential regulator and supervisor of all insurers undertaking insurance business in New Zealand (NZ), and are responsible for administering the Insurance (Prudential Supervision) Act 2010 (IPSA).
View the Insurance (Prudential Supervision) Act 2010 (IPSA)
In 2015, we introduced regular data collections from New Zealand licensed insurers to support our own prudential supervision under the IPSA and monitoring of the financial sector as mandated by the Reserve Bank of New Zealand Act 1989.
Find out more about the regular data collections from New Zealand licensed insurers.
We publish only aggregated data. All information we collect in the insurer data returns is subject to Section 135 confidentiality provisions under the IPSA.
We compile data series using a 12-month running total.
Read the Reserve Bank of New Zealand Act 1989.
Provision of information about revisions and advance notice of major changes in methodology
New data, or revised data, is in bold font. This applies to the summary table only and not Excel files. We generally publish revisions when we are next due to update and release the table. Should we need to make revisions more promptly, we will post a special note. We post any major changes in methodology as a special note.
Quality
Dissemination of documentation on methodology and sources used in preparing statistics
QIS respondents complete and return an Excel template each quarter. The template is accompanied by a file that specifies procedures and definitions for survey respondents.
See New Zealand Insurer Data Collections for more information.
Insurance methods
Life
Aggregate for all insurers that reported using life insurance methods.
Non-life
Aggregate for all insurers that reported using general insurance methods.
Life insurance methods
Insurance valuation methods that are consistent with Appendix C of NZ IFRS 4, or equivalents under other accounting standards. These are either projection (long-term future cash-flows including any renewals), accumulation (past cash-flows) or a mixture. Information that is reported specifically for life insurance methods (and not general insurance methods).
General insurance methods
Insurance valuation methods that are consistent with Appendix D of NZ IFRS 4, or equivalents under other accounting standards. These are a mixture of past and future cash-flows but without including any future renewals. Information that is reported specifically for general insurance methods (and not life insurance methods).
Revenue
Gross earned premium
The earned policy or premium revenue from insurance business, gross of outwards reinsurance premium. Includes policy or administration fees. Excludes non-insurance (such as commissions for distributing another insurer’s products).
Outwards reinsurance premium
The premium for outwards reinsurance that corresponds to gross earned premium. Excludes commissions.
Net earned premium
The gross earned premium revenue from insurance business, net of outwards reinsurance premium.
Other insurance revenue and commission
Comprises other insurance revenue and outwards reinsurance commission.
Other insurance revenue
Other revenue arising from insurance business (such as management fee income on insurance investment contracts) that is not included elsewhere.
Outwards reinsurance commission
Commission earned on outwards reinsurance, whether this is fixed rate or amount, or a variable rate or amount that is dependent on experience on the outwards reinsurance policy(s).
Total insurance revenue
The sum of net earned premium and other insurance revenue and commission.
Interest, dividends and rent
Revenue earned from investment assets, gross of investment management expense, but excluding realised and unrealised gains and losses.
Realised gains and losses
Revenue earned from the realised increase in value of investment assets, gross of investment management expense.
Unrealised gains and losses
Revenue earned from the unrealised increase in value of investment assets, gross of investment management expense. Include movements in property revaluation reserves.
Total investment revenue
The sum of interest, dividends and rent, together with realised and unrealised gains and losses.
Other revenue and commission
Comprises fee and commission revenue and other revenue.
Fee and commission revenue
Fee and commission revenue that is from insurance-related activity (such as distribution or administration of another insurer's products), as well as activities not related to insurance. Excludes fee and commission revenue from insurance business.
Other revenue (excluding insurance-related)
Other revenue not included elsewhere, such as increase in currency translation reserves and gains or losses on sale of a business (if loss record as a negative figure). Excludes revenue from insurance business.
Total revenue
The sum of total insurance revenue, total investment revenue and other revenue and commission.
Expenses
Gross claims / benefits expense
Comprises gross policy expense and gross claims expense.
Gross policy expense
Under life insurance methods, the cost of policy related expenses, gross of outwards reinsurance and other recoveries.
Gross claims expense
Under general insurance methods, the cost of claims, gross of outwards reinsurance and other recoveries.
Outwards reinsurance and other recoveries
Under life insurance methods, the portion of gross policy expense that is met from outwards reinsurance or payments by third parties.
Under general insurance methods, the portion of gross claims expense that is met from outwards reinsurance or payments by third parties.
Net claims / benefits expense
Comprises net policy expense and net claims expense.
Net policy expense
Under life insurance methods, the cost of policy related expenses, net of outwards reinsurance and other recoveries.
Net claims expense
Under general insurance methods, the cost of claims, net of outwards reinsurance and other recoveries.
Movement in technical items
Comprises the following by life and non-life:
- increase in policy liability, net of RI (life)
- increase in deferred and future tax on policy liabilities (life)
- increase in policyholder unvested benefit liability (life)
- increase in unexpired risk liability (non-life)
- decrease in deferred acquisition cost (non-life).
Increase in policy liability, net of reinsurance (RI)
Under life insurance methods, the increase since the start of the financial year in policy liabilities, net of outwards reinsurance and other recovery assets. May be gross or net of tax, consistent with the insurer’s financial statements or alternative financial information. Include deposits component of premiums and withdrawals component of benefits.
Increase in deferred and future tax on policy liabilities
Under life insurance methods, the increase since the start of the financial year in deferred and future tax on policy liabilities. If tax is not recorded here then increase in policy liability, net of RI and increase in policyholder unvested benefit liability figures should be net of tax.
Increase in policyholder unvested benefit liability
Under life insurance methods, the increase since the start of the financial year in policyholder unvested benefit liability. May be gross or net of tax, consistent with the insurer’s financial statements or alternative financial information.
Increase in unexpired risk liability
Under general insurance methods, the increase since the start of the financial year in unexpired risk liability.
Decrease in deferred acquisition cost
Under general insurance methods, the decrease since the start of the financial year in deferred acquisition cost assets (excludes outwards reinsurance commission).
Other insurance expenses and commission
Comprises initial commission, other commission, other acquisition and other insurance expenses.
Initial commission
For life insurance and health insurance, the cost of commissions in respect of the first year of cover.
Other commission expenses
The cost of commissions, excluding initial commission. This includes all commission in respect of general insurance.
Other acquisition expenses
Expenses associated with sales of insurance business, but excluding commissions; for example, marketing costs and salaries of employed sales staff.
Other insurance expenses
Administration and management expenses associated with insurance business that is not included elsewhere.
Total insurance expenses
The sum of net claims/ benefits, movement in technical items and other insurance expenses and commission.
Total investment expenses
Expenses associated with management of investment assets (regardless of whether investments are managed internally or externally).
Other expenses
Expenses that are not included elsewhere, but excluding expenses associated with insurance business.
Total expenses
The sum of total insurance expenses, investment expenses and other expenses.
Profit
Profit before tax
Total revenue less total expenses
Profit after tax
Total revenue less total expenses, net of tax expense.
Key ratios
Gross loss ratio (non-life)
Gross claims expense (non-life) divided by gross earned premium (non-life).
Net loss ratio (non-life)
Net claims expense (non-life) divided by net earned premium (non-life).
Net combined ratio (non-life)
Total insurance expenses (non-life) divided by net earned premium (non-life).
Symbols and conventions for summary table
| Symbol or convention | Definition |
|---|---|
| 0 | Zero or value rounded to zero |
| - | Not applicable |
| .. | Not available |
| bold | Revised/new |
| italics | Provisional |
| Light grey background | Historical |
General notes
- Individual figures may not sum to the totals due to rounding
- Percentage changes are calculated on unrounded numbers
- You are free to copy, distribute and adapt these statistics subject to the conditions listed on our copyright page.
Related statistics
View other data in the Insurance financial statistics series.