Sky News host Rowan Dean says the Australian economy is getting worse according to APRA, yet the Morrison government is “flirting with this insanity about net zero”.
The peak financial services regulator the Australian Prudential Regulation Authority has said the worst of the COVID pain on the economy has yet to come.
Mr Dean said the prime minister needs to stand up and side with his National Party Coalition colleagues who are saying “forget all this net zero garbage”.
“Please will someone just stand up and say enough of this madness, we are not interested in your net zero rubbish," Mr Dean said.
“We are interested in building Australia and making it great economically.”
“Profitability of risk products has substantially declined in recent years. The net profit margin for 2019-20 was negative 10%, considerably below the longer-term average of around 3%.”
The APRA analysis confirmed that the result was driven largely by continued substantial losses in individual disability income insurance (IDII) and further declines in the profitability of individual lump sum and group business.
“Despite incremental premium rate increases in IDII in recent years, the combined effects of persistent adverse claims experience and the need to strengthen reserves contributed to the poor result,” it said.
“The profitability of group lump sum and group disability income insurance also declined during 2019-20. However, it should be noted that on an insurer-by-insurer level (as opposed to an industry aggregate level), profitability can be lumpy, with downward movements driven by the timing of insurers changing their assumptions about risk and the pricing of poli
Mortgage Business
RBA focused on lending, not house prices: Lowe By Malavika Santhebennur 08 February 2021
Governor Philip Lowe has said that the central bank will continue to focus on lending standards and hold discussions with regulators if they were to deteriorate.
Addressing the House of Representatives standing committee on economics on 5 February, the Reserve Bank of Australia (RBA) governor Philip Lowe has reiterated that the central bank would not focus on housing prices.
“As we have previously discussed at these hearings, the RBA does not – and should not – target housing prices,” Mr Lowe said.
“Instead, our focus is on the lending that is used to purchase housing. We want to see lending standards remain strong.”
The RBA’s quantitative easing program has no impact on house prices and reduces long-term interest rates and the Aussie dollar to levels much lower than they would otherwise be, so more bond-buying is a lock.
“[It was] creating a new entity and determining who were the best people for it in terms of capability and culture,” Doyle said.
“For example, mergers result in two potential chief executives, CFOs [chief financial officers], other C-suites and range of management and teams. How does the new entity decide whom is the best?
“It is no longer appropriate to simply offer redundancies and see who takes it and who remains. The people merging process has to become much smarter, much more transformative.”
Adam Salzer, Whitewater Transformations executive chair, said funds spend a great deal of time working on the strategic pros and cons of their merger and acquisition without adequately identifying how they would bring the two workforces together.