Group life insurance is back in the black, with the industry posting a $284 million pre-tax profit in the year to March 31.

This follows a $682 million loss the previous year, according to latest figures from the Australian Prudential Regulation Authority (APRA).

The upturn was due to improved premiums inflows, although these were partly offset by higher claims.

Gross premium inflows for the 12 months ending 31 March totalled $6.1 billion, up from $4.7 billion. Claims grew to $3.9 billion from $3.3 billion.

Lump sum business recorded a pre-tax profit of $1.8 billion for the year, compared with $951 million the previous year. Gross premium inflows for lump sum were up to $6.1 billion from $4.7 billion. Claims grew to $3.3 billion from $3 billion.

Losses in the income protection sector blew out to $862 million in the year, compared with $19 million the previous year.

Gross premium inflows increased to $2.9 billion from $2.7 billion, and claims were up to $1.3 billion from $1.2 billion.

The problem for income protection insurers was a large rise in net policy liabilities, up to $1.8 billion from $353 million.

Meanwhile, the life industry is making little headway on commission payments.

APRA figures shows the industry paid $1.5 billion of upfront commission in the year to March 31, down from $1.6 billion. Trails increased to $2.4 billion from $2.3 billion.