The private health insurance industry in Australia saw its profit after tax more than double to Au$2.2bn (£1.12bn) for the year ending 30 June 2023.
This was mainly due to investment income but premium income and policyholders also rose, according to the Australian Prudential Regulation Authority (APRA).
Net profit for the same period last year stood at Aus$1bn, meaning an overall increase of 109% for the industry.
Premiums, claims and policyholders rise
Premium revenue for the period increased by 3.3% for the period, from Aus$26.6bn to Aus$27.5bn, “predominantly due to membership growth” the APRA said.
Claims costs also increased over the period by 2.4%, which the APRA said reflected higher levels of utilisation of services.
That saw an increase from Aus$22.1bn in 2022 to Aus$226bn for the period ending June 2023.
Hospital treatment membership rose by 2.3%, or 270,160 people in the year ending June 2023.
Membership in the over-50 age group increased by 2.2%, or 102,412 people, while those covered aged 20 to 49 increased by 2.9%, or 120,966 people.
A total of 11,948,443 people, or 45.1% of the population, were covered by hospital treatment cover on June 30, up by 69,607 people compared to March 2023.
Family policies also increased by 10,815 and single policies by 16,351 during the quarter.
AU$1bn rise in investment income
“The main driver behind the result was a recovery in investment income to Au$702.4m for the year, which reflected increases in the value of equity portfolios and higher interest income,” the APRA said.
That amount compared to a negative net investment income of Au$295m for the corresponding period, representing an overall improvement of almost Au$1bn.
Gross profit margin for the industry increased to 17.6% from 16.9% according to the ARPA.