K63 Insurance and Superannuation Funds

Strong super gains tipped for 2023

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Original article by Louise Brannelly
The Australian – Page: 17 : 24-May-23

Data from Chant West shows that the median growth superannuation fund posted a return of f 1.2 per cent in April and 8.1 per cent for the first 10 months of 2022-23. Mano Mohankumar of Chant West shows that returns have been flat so far in May, but growth funds are still on track to achieve a full-year return of around eight per cent. This compares with a loss of 3.3 per cent in 2021-22. SuperRatings’ executive director Kirby Rappell is also upbeat about the sector’s performance in 2022-23.

CORPORATES
CHANT WEST FINANCIAL SERVICES PTY LTD, SUPERRATINGS PTY LTD

Super funds post 1.1pc return amid volatility

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Original article by Paulina Duran
The Australian – Page: 15 : 21-Apr-23

Data from Chant West shows that the median growth superannuation fund gained 1.1 per cent in March, and 6.9 per cent in the first nine months of 2022-23. The S&P/ASX 200 shed 0.2 per cent in March, but this was offset by strong returns from international shares, as well as Australian and international bonds. Mano Mohankumar of Chant West notes that the median growth fund has gained 29 per cent since the financial market meltdown in March 2020, at the onset of the global pandemic.

CORPORATES
CHANT WEST FINANCIAL SERVICES PTY LTD

Super tax may cost more than it raises

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Original article by Glenda Korporaal
The Australian – Page: 17 : 15-Mar-23

The SMSF Association will establish a working group of technical experts which will assess the federal government’s proposed changes to super tax concessions. CEO Peter Burgess says the proposed reforms could potentially prove to be as disastrous as the super surcharge regime, which cost more to implement and run than it raised in tax revenue. Burgess adds that the SMSFA is concerned that the proposed changes could have unintended consequences and could affect public confidence in super.

CORPORATES
SMSF ASSOCIATION

Tax the rich to pay for parental leave contributions: HESTA

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Original article by Lucy Dean, Tom McIlroy
The Australian Financial Review – Page: 6 : 1-Feb-23

Industry superannuation fund HESTA has used its pre-Budget submission to urge the federal government to cap super fund balances at $5m. CEO Debby Blakey notes that balances of around $5m receive about $70,000 worth of tax concessions annually, which is more than many of HESTA’s members earn in a year. HESTA has also called for the threshold at which high-income earners pay more tax on super to be lowered from $250,000 a year to $180,000; Blakey says this would allow more money to be directed to the Commonwealth Parental Leave Pay scheme. She contends that Australia’s superannuation system has a "persistent gender blind spot" that must be addressed. Some 80 per cent of HESTA’s members are women.

CORPORATES
HEALTH EMPLOYEES’ SUPERANNUATION TRUST AUSTRALIA LIMITED

Superannuation fund returns go negative in September as markets weaken

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Original article by Rod Myer
The New Daily – Page: Online : 18-Oct-22

Data from SuperRatings shows that the average balanced superannuation fund lost 3.1 per cent in value during September and 5.7 per cent in the year to September. Factors such as rising inflation and interest rates have weighed on super returns in 2022. SuperRatings’ executive director Kirby Rappell anticipates a challenging calendar year for returns in the sector. However, Rappell emphasises that super is a long-term investment, and he notes that balanced funds have returned an average of at least seven per cent over time.

CORPORATES
SUPERRATINGS PTY LTD

Super contributions surge past $63bn

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Original article by Glenda Korporaal
The Australian – Page: 14 : 24-Aug-22

Data from the Australian Prudential Regulation Authority shows that net contributions to superannuation funds increased by 88 per cent in 2021-22. Net contributions exceeded $63bn, with inflows of $146.5bn being partially offset by some $85.8bn worth of benefits being paid out to members. Employer contributions rose by 10.2 per cent to $108.6bn, with the super guarantee rising by 0.5 per cent to 9.5 per cent on 1 July 2021. Personal contributions increased by about 32.7 per cent, to $35.3bn. The total value of super funds’ assets fell from $3.38trn to $3.31trn during the financial year.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Suncorp puts bank into play

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Original article by Sarah Thompson, Anthony Macdonald
The Australian Financial Review – Page: 1 & 16 : 27-Jun-22

Suncorp Group may abandon its ‘bancassurance’ model and pursue a sale or demerger of its banking division. Suncorp has engaged the services of investment bank Barrenjoey Capital Partners to consider options for its banking arm, which would allow the listed group to focus on its insurance division. Analysts have suggested that the recent downturn in Australian bank stocks could make selling Suncorp Bank more attractive than listing it on the sharemarket. Suncorp’s own share have fallen by one per cent over the last year, while the S&P/ASX 200 has shed 10 per cent.

CORPORATES
SUNCORP GROUP LIMITED – ASX SUN, SUNCORP BANK, BARRENJOEY CAPITAL PARTNERS PTY LTD, STANDARD AND POOR’S ASX 200 INDEX

Deluge of flood claims has investors fleeing

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Original article by David Ross
The Australian – Page: 15 : 1-Mar-22

The Insurance Council of Australia has advised that more than 15,000 insurance claims arising from floods in Queensland and New South Wales have been lodged to date. Suncorp had received 5,000 claims by Monday morning, while Insurance Australia Group had received more than 3,200 claims by Sunday evening. Suncorp has also indicated that it may incur losses of up to $75m as a result of the floods; the general insurer recently reported that its costs associated with weather events in the first half of 2021-22 totalled $695m.

CORPORATES
INSURANCE COUNCIL OF AUSTRALIA LIMITED, SUNCORP GROUP LIMITED – ASX SUN, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG

Deluge of flood claims has investors fleeing

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Original article by David Ross
The Australian – Page: 15 : 1-Mar-22

The Insurance Council of Australia has advised that more than 15,000 insurance claims arising from floods in Queensland and New South Wales have been lodged to date. Suncorp had received 5,000 claims by Monday morning, while Insurance Australia Group had received more than 3,200 claims by Sunday evening. Suncorp has also indicated that it may incur losses of up to $75m as a result of the floods; the general insurer recently reported that its costs associated with weather events in the first half of 2021-22 totalled $695m.

CORPORATES
INSURANCE COUNCIL OF AUSTRALIA LIMITED, SUNCORP GROUP LIMITED – ASX SUN, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG

Failing super funds retain 1m members

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Original article by Michael Read
The Australian Financial Review – Page: 8 : 11-Nov-21

Data from the Australian Prudential Regulation Authority shows that 1.1 million superannuation fund members have been advised that their fund has failed the new performance test. However, just 68,000 of these members responded by switching funds. Xavier O’Halloran of Super Consumers Australia says that some funds which failed the test have promoted benefits such as discounts on leisure activities in order to retain members. Brendan Coates of the Grattan Institute has in turn called for further reforms in the super sector, including the introduction of a shortlist of top-performing default super funds.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, SUPER CONSUMERS AUSTRALIA, GRATTAN INSTITUTE