Key risk products continue to be an area of concern for the life insurance industry, according to new figures from the Australian Prudential Regulation Authority (APRA).

A regular update from APRA last week shows life insurers recorded a net loss of $164.7 million in the year to March 31 from individual lump sum, individual disability income insurance (DII), group lump sum and group DII risk offerings.

In the year-earlier corresponding period, the four product lines made a combined loss of $1.62 billion.

Of the four product lines, only individual lump sum made a profit, at $316.5 million. Individual DII ran up the largest loss during the period, losing $331.2 million. Group lump sum and group DII lost $91.8 million and $58.3 million respectively.

Overall, the life insurance industry returned to profitability during the year, propped up by higher investment returns as market sentiment globally improved.

It made a net profit after-tax of $1 billion, reversing the year-earlier loss of $1.8 billion.

Investment revenue increased sharply to $7.1 billion from $1.8 billion.

Net policy revenue declined 9.5% to $14.1 billion and net policy expenses fell 10.6% to $9.5 billion.

For the March quarter, the industry’s overall net profit after-tax tanked 62.7% compared with the previous quarter to $159.1 million.

The four risk products performed better during the quarter, making a combined $176.6 million in net profit.

Individual DII made a profit of $264.8 million, group lump sum $21.2 million and group DII $56.2 million. Individual lump sum was the only product in deficit, running a loss of $165.7 million.

APRA says the next update is scheduled for release on August 26.

Click here to access the report.