Group disability income protection insurance recorded a net profit after-tax of $152 million in the year to June 30 following a $24 million loss the previous year, according to Australian Prudential Regulation Authority industry data.

The turnaround was largely driven by a sharp reduction in total expenses to $3 million from $1.51 billion.

Gross policy revenue was about $2.22 billion, up marginally from $2.21 billion.

The individual income protection segment narrowed its after-tax net losses to $368 million from $381 million.

Overall, the life insurance industry made an after-tax net profit of $2.4 billion in the year to June 30, down 18.4% on the previous year.

Direct life premiums, which contribute to gross policy revenue, increased to $18.44 billion from $16.78 billion.

Death and disability claims grew to $9.16 billion from $8.09 billion, and surrenders and terminations climbed to $490 million from $457 million.

In the individual lump sum sector, after-tax net profit fell sharply to $698 million from $1.32 billion as total expenses blew out to $6.94 billion from $5.3 billion.

Gross policy revenue grew to $9.56 billion from $8.9 billion.

Group lump sum business suffered a sharp decline in net profit after-tax to $191 million from $468 million, as gross policy revenue dropped to $6.35 billion from $6.59 billion and gross policy expenses increased to $4.82 billion from $4.43 billion.

The data is based on 29 life insurers operating in Australia.