Friendly society profits weaker in 2014 18 December 2014 5:13PM Rohneel Kumar Australia's friendly society sector produced less profit but strengthened its overall capital position in the year to June 2014, a period characterised by improved cash flows.Reported net profit after tax for the industry was A$17.8 million, down from $23.9 million in the year to June 2013, the Australian Prudential Regulation Authority said yesterday in its annual review.As at 30 June 2014, the industry consisted of 12 friendly societies, managing 200 benefit funds. The sector has evolved and consolidated from a myriad of employment based groups providing mutual support to members and their families in times of unemployment, sickness, death, disability and old age to become APRA regulated life companies. APRA figures show the industry held assets of $6.6 billion, up from $6.3 billion a year earlier. Of total assets under management, $3.8 billion (57 per cent) was invested in interest bearing securities and $1.6 billion (25 per cent) in equities, with most of the remaining funds (11 per cent) held as "cash and deposits".Net premiums for the industry were $722 million, up from $595 million in the previous year.Net policy payments for the industry for the same period were $770 million, down from $785 million in the previous year.APRA said aggregate industry capital coverage was 2.5 times the prescribed capital amount as at 30 June 2014, compared with 2.29 times in the previous year.