Life insurers recorded about $712 million in net profit for the December quarter, up from $489 million in the preceding quarter, according to latest figures from the Australian Prudential Regulation Authority.

Total revenue for the December quarter grew to $13.5 billion from $7.4 billion, largely due to improved investment revenue, which surged to $8 billion from $2.3 billion.

Investment income partially offset a $237 million decline in net policy revenue to $4.3 billion in the quarter.

Total expenses blew out to nearly $12 billion from $6.8 billion as net policy liabilities worsened to $7.3 billion, up from $2.2 billion in the September quarter.

For the calendar year, the industry’s net profit fell to $2.43 billion from $2.31 billion.

Net premium declined to $41.97 billion from $50.71 billion and net policy payments fell to $42.26 billion from $124.6 billion.