Insurance

Insurance
Competition cop waves red flag over WA insurance deal
Insurance Australia Group’s proposed acquisition of RAC Insurance Pty Limited (RACI) is in doubt after the Australian Competition and Consumer Commission (ACCC) raised concerns. The ACCC said the acquisition could harm consumers by reducing competition in the Western Australia (WA) insurance market. Under the deal IAG would become the underwriter of RAC-branded motor and home insurance policies, consolidating a market already dominated by a few large players. ACCC Commissioner Philip Williams said RACI was the leading provider of motor and home and contents insurance in WA, with a significantly larger share in each market compared to any other insurer. “We are concerned that the acquisition would increase concentration in an already highly concentrated market,” Williams said in a media release. This could potentially lead to higher premiums and a reduction in product quality for consumers. The regulator also believed the acquisition could allow IAG to limit competitors’ access to reliable and affordable repair services such as smash repairs, windscreen replacements, and home repairs. RACI underwrites motor insurance and home and contents insurance for, and is wholly owned by, the Royal Automobile Club of Weste
Insurance
Berkshire takes surprise stake in ailing UnitedHealth
The share price of beleaguered U.S health insurer UnitedHealth was up 7% in overnight trading after Warren Buffett’s Berkshire Hathaway revealed it had taken a significant stake in the stock. It’s understood that the Omaha-based conglomerate bought more than 5 million shares in the health care firm for around US$1.6 billion at the end of June, making it the 18th biggest position in the Berkshire $300 billion equity portfolio behind Amazon and Constellation Brands. Down around 50% for 2025 prior to yesterday’s close, UnitedHealth - the largest private health insurer – remains among the 10 worst-performing S&P 500 stocks this year. A one-time healthcare stalwart, UnitedHealth had become a punching bag for public disapproval against spiralling health care costs and is currently facing a Justice Department investigation into its Medicare billing practices. Buffett is no stranger to UnitedHealth, with Berkshire having owned around 1.18 million shares in the health insurer between 2006 and 2009, before selling his entire stake in 2010 amid a broader retreat from health insurers. In recent times, UnitedHealth has been in the limelight for all the wrong reasons. In addition to facing soaring medical costs and federal inv
Insurance
Suncorp earnings grow after selling businesses
Suncorp beat earnings estimates last fiscal year, driven by growth in investment returns and the sale of its bank and New Zealand life insurance businesses. Net profit after tax was A$1.82 billion, up from $1.20 billion year-over-year. Cash earnings were $1.49 billion, rising from $1.37 billion and ahead of Visible Alpha estimates of $1.47 billion. “Following the disciplined execution of our strategic and operational priorities, including the successful completion of our simplification journey with the sale of Suncorp Bank and New Zealand Life, Suncorp’s full focus as a pure-play general insurer is on improving the insurance products and services we offer our customers across Australia and New Zealand,” according to Suncorp CEO Steve Johnston. “Our strong set of results delivered this year included the one-off profits on the sale of Suncorp Bank and New Zealand Life, significantly higher investment returns and weather costs across Australia and New Zealand that were favourable to allowance by more than $200 million.” Suncorp Bank was acquired by ANZ in July 2024. The sale of New Zealand Life to Resolution Life closed in January. The company’s gross written premium was $15.01 billion, growing from $14.12 billion.
Insurance
IAG profits rise with growth in Australia, NZ
Insurance Australia Group (IAG) saw major growth in net profit and insurance profit last fiscal year with gross written premiums increasing in its Australia and New Zealand divisions. Net profit after tax was A$1.36 billion, up 51.3% from the 2024 fiscal year and above Visible Alpha estimates of $1.15 billion. Insurance profit was $1.74 billion, rising 21.2%. "We had strong momentum through FY25 and supported our customers when they needed us most,” said IAG CEO Nick Hawkins. “By delivering on our strategy and investing for growth, we can execute at scale and are set to protect significantly more Australians and New Zealanders.” “IAG’s financial outcomes this year are a result of the positive financial and operational performance of all our divisions supported by favourable natural perils and investment markets.” The company’s gross written premium was $17.11 billion, growing from $16.40 billion year-over-year. Net earned premium rose by 8% to $9.98 million. Gross written premium growth in its Retail Insurance Australia segment was up 7.3%, while Intermediated Insurance Australia saw growth of 6.3%. New Zealand Retail gross written premiums increased by 5.3%, though New Zealand Intermediated insurance was down 2.6%.
Insurance
QBE in sight of targets after interim results
Global insurer QBE Insurance has announced a 27% increase in net profit after tax (NPAT) to US$1.02 billion (A$1.57 billion) for the first half of the 2025 financial year (H1 FY25). The company, which offers property, casualty, health and life insurance for businesses, individuals and institutions, said revenue increased by 4% to $10.875 billion in the six months to 30 June 2025. Group CEO Andrew Horton said QBE delivered a solid first-half result and was on track to achieve its full-year outlook. The board declared a 25% franked interim dividend of 31 Australian cents per share to be paid on 26 September to shareholders registered on 20 August, compared with 24 cents in the previous corresponding period. Source: QBE Insurance“We are executing well against a clear strategy, with efforts to reshape our portfolio and stabilise performance underpinning improved results,” Horton said in an ASX announcement. “We have strong momentum in the business and are motivated to deliver another year of excellent returns in 2025.” The company cited the outlook as mid‑single digit percentage growth in gross written premiums on 2025 constant currency, a combined operating ratio of about 92.5% and a 1H FY25 exit core fixed income yiel

Insurance
Insurer’s investors feel poorly after downbeat guidance
UnitedHealth shares plunged more than 7% after it disappointed investors with its second quarter (Q2) earnings and outlook for the 2025 financial year (FY25). The American health insurer said earnings from operations fell 34% to US$5.2 billion (A$7.97 billion) in the three months ended 30 June 2025 compared with the previous corresponding period despite revenue rising 13% to $111.6 billion. Diluted earnings per share (EPS) dropped 18% to $3.74 and adjusted EPS dived 40% to $4.08. The results included $1.2 billion of unfavourable ‘discrete impacts’ of $620 million related to the individual exchange business, including the acceleration of losses in the second half of 2025, and others related to settlements and other provisions. UnitedHealth also updated its FY25 outlook to forecast revenue of between $445.5 billion and $448.0 billion, compared with $400.3 billion in 2024, net earnings of at least $14.65 per share, compared with $15.51, and adjusted earnings EPS of at least $16, compared with $27.66. “The new outlook reflects first half 2025 performance and expectations for the remainder of the year, including higher realised and anticipated care trends. The company expects to return to earnings growth in 2026,” it sai
Insurance
Mental health claims overwhelm insurers: CALI
A near-doubling of insurance claims paid out for mental health-related issues compared to five years ago underscores what the Council of Australian Life Insurers (CALI) calls the urgent need to address an underlying health epidemic sweeping the nation. Given that insurers paid out more than $2.2 billion in retail mental health claims in 2024 – almost double the amount paid just five years ago - CALI is also questioning the sustainability of insurance products to support Australians with mental health issues. CALI argues that the nation’s financial safety net is being pushed to its limits, with more Australians leaving work permanently due to mental ill health than ever before. Mental ill health has become the number one cause of total and permanent disability (TPD) claims, now accounting for almost one in three (31%) claims paid; and one in five income protection claims is due to mental health - with insurers paying out more than $887 million in 2024 alone.Tipping pointAccording to CALI CEO Christine Cupitt, the entire safety net, not just life insurance, is under pressure. Cupitt points to the growing number of people, particularly younger Australians, leaving the workforce every year permanently due to mental health
Insurance
Bupa cops record $35m fine for refusing insurance claims
The Australian Competition and Consumer Commission (ACCC) is seeking $35 million from healthcare provider Bupa after finding a troubling pattern of conduct that goes beyond mere administrative failures. Bupa has admitted to engaging in misleading or deceptive conduct and making false or misleading representations by advising members they were not entitled to private health insurance benefits for their entire claim, when in fact this was not the case, affecting thousands of consumers over five years. The $35 million penalty sought jointly by the ACCC and Bupa is a record for enforcement actions in Australian health insurance, comparable to the $5 million penalty imposed on Medibank in 2020 for similar misrepresentations about benefits coverage. However, Bupa's conduct appears more systematic, involving 388 Mixed Coverage Claims where the company admitted to unconscionable conduct. This latest breach is particularly damaging given Bupa's previous run-ins with the ACCC. In 2020, the company paid $6 million in penalties for misleading aged care residents about extra services that were never provided. The pattern suggests a corporate culture where consumer rights are consistently subordinated to profit margins. Bup
Insurance
Allianz clear to buy RAAI amid shrinking market fears
The competition watchdog has no plans to stand in the way of German financial services firm Allianz’s plans to acquire the Royal Automobile Association of South Australia’s personal insurance business (RAAI). Based on the Australian Competition and Consumer Commission’s (ACCC) findings, Allianz’s purchase of RAAI’s general insurance business from the Royal Automobile Association of South Australia for $642 million is unlikely to substantially lessen competition. The approval includes a 20-year exclusive distribution arrangement between Allianz and RAAI. The ACCC expects other suppliers in South Australia to compete with a merged Allianz and RAAI. “… we found that competition in relation to price and coverage in South Australia is being driven predominantly by other insurers, including Suncorp through its AAMI brand, IAG, Auto & General and Youi,” ACCC Commissioner Philip Williams said. However, the ACCC recognised that increased claims volatility linked to severe weather and elevated reinsurance costs have affected RAAI’s operating outlook, potentially limiting its future competitiveness. Meanwhile, The Motor Trades Association of Australia (MTAA) is worried about the accelerating consolidation in the insurance i