The NT Government-owned TIO Insurance has increased after-tax profit by 45% to $52 million in the year to June 30, with CEO Richard Harding saying improvements in operational performance have led to the strong result.

He says all parts of the business returned a surplus, putting the company in a strong financial position.

“We began a journey about three years ago to make TIO a stronger and more sustainable business, and that hard work is now bearing fruit,” he said.

He says the improved core performance reduces the company’s exposure to volatile investment markets as well as to natural events.

The result compares with $35 million after tax and $37 million pre-tax last year.

The Motor Accident Compensation Scheme achieved the strongest result, with a $40.1 million surplus from normal operations.

Mr Harding says improved case management has seen more injured people return to work sooner and the surplus enables TIO to increase the scheme’s capital adequacy and invest in road safety programs.

The insurance portfolio returned a $6.4 million surplus despite strong market competition, natural disasters raising reinsurance costs and the impact of Cyclone Carlos – TIO’s second-biggest natural event for claims.