Australia’s non-life insurance industry has been resilient against an increasingly complex and interconnected risk landscape, with total insurance revenue for the non-life market reaching approximately AU$77.7bn (US$54.1bn) for the fiscal year ended 30 June 2025.
According to AM Best, the 10 leading Australia-based non-life insurers reported a combined full-year insurance revenue of nearly AU$46bn in fiscal year 2025, an increase of 11.1% year over year.
Additionally, benign catastrophe losses, strong investment returns and the cumulative effect of premium rate increases across core business lines helped to improve profitability and underwriting performance across Australia’s entire non-life industry in fiscal year 2025. In the 12 months up to 30 June 2025, the non-life segment generated AU$10.5bn in profit before tax. While annual statistics for fiscal year 2024 are unavailable for comparison, the latest results marked a sharp improvement from the AU$4.8bn profits recorded by direct insurers over the previous nine-month period to June 2024.
The non-life segment remains the dominant force in Australia’s insurance industry, representing 58% of total insurance market revenue in fiscal year 2025. While direct insurance represents more than 90% of total non-life revenue, reinsurance continues to play a vital role in mitigating large-scale catastrophe risks and supporting market stability. The direct non-life segment’s net combined ratio remained under 100% across all four fiscal quarters, indicating sustained underwriting profitability.
According to the report, the top 10 non-life insurers’ total net investment income grew by 12.7% to nearly AU$2.1bn in fiscal year 2025,” said Chee Yun, financial analyst, AM Best.
However, the report noted that the ongoing conflict in the Middle East has introduced significant uncertainty and risk to the insurance segment. To amplify industry support, the Insurance Council of Australia has tasked its most senior industry committee to examine how cost inflation and supply chain disruptions may affect policyholders, as well as develop mitigation strategies and ensure the industry is ready to respond swiftly for customers.
