RACQ Insurance earned an underwriting surplus of $77.9 million and premium income of $693.8 million for the year to June 30.

No comparative figures are available because the Queensland insurer has changed its financial year end from December 31. But it says underwriting surplus for the six months to June 30 last year was $43.3 million and premium income was $336.8 million.

RACQ Insurance paid $437.5 million in claims expenses for the financial year, compared with $270 million in the six months to June 30 last year.

RACQ’s consolidated surplus, which includes the insurance arm and other entities, was $90.2 million for the year. Surplus for the six months to June 30 last year was $36 million.

The insurer says it will be a challenge to match last financial year’s performance, due to an extremely competitive market that will affect insurance premium financing.

“In the coming financial year we expect our surplus after tax to be considerably lower.”

 Claims are also expected to rise as average weather conditions return.