CommInsure, the Commonwealth Bank’s insurance division, has reported a 6% drop in underlying profit after tax to $299 million for the year.

Net profit after tax for the division rose from $191 million last year to $396 million this year due mainly to improved investment returns.

CommInsure’s insurance income increased to $684 million this year, up from $657 million last year.

Retail life insurance inforce premium grew 12% during the period to $853 million but was offset by higher claims experience.

General insurance premiums grew 13% to $408 million for the year, with the business recording improved loss ratios despite major weather events.

Total annual premiums at the end of June this year were $1.58 billion, up from $1.56 billion at the same time last year.

Commonwealth Bank recorded a 20% increase in net profit for the year to $5.66 billion.

Group insurance income increased 2% this year to $945 million, as a result of inforce premium growth, although this was partially offset by higher claims due to significant weather events.