A 61% improvement in underlying insurance profitability helped Northern Territory Government-owned bancassurer TIO record an after-tax profit of $8 million in 2011/12.

Global investment markets and falling interest rates continued to hit the company’s banking division, while the Motor Accident Commission (MAC) was TIO’s worst performer, lodging a $500,000 pre-tax profit, down from $44.3 million the previous year.

Following an underwriting profit of $14 million in 2010/11, the MAC reported a $33.3 million loss in 2011/12, affected by lower interest rates and increased costs in retail deposits and term investments.

TIO’s insurance operations continued to perform well, lodging a pre-tax profit of $8.2 million on gross written premium of $116.5 million.

“The improvement in operational performance is testament to prudent management, streamlining our systems and putting our customers first,” CEO Richard Harding said.

TIO paid $62.3 million in claims in the year, recording an underwriting profit of $4.7 million.