The 12 months to 30 June 2011 was once again characterised by catastrophic loss events, which impacted the results of Australian insurers, but were substantially mitigated by extensive reinsurance coverage.
Investment markets delivered reasonably stable results with interest rates moving up slightly, credit spreads gradually improving over the period and yields remaining fairly stable.
The equity market showed an overall improvement in the period, albeit July and August have once again seen increased volatility due to uncertainty about the global economic recovery.
Overall performance from the industry has been resilient, notwithstanding the impacts of the Queensland floods and storms, Cyclone Yasi and for some insurers the New Zealand earthquakes. These catastrophic events resulted in significant economic and insured losses and, tragically, the loss of lives.