Life insurers’ gross policy revenue grew to $22.1 billion in the year to September 30 from $20 billion the previous year, according to latest industry figures from the Australian Prudential Regulation Authority.

Direct premium also increased, to $17.1 billion from $15.8 billion.

However, life insurers suffered a drop in investment income to $11.2 billion in the year from $12.9 billion.

This has an impact on total revenue, producing a result of $35.9 billion for the year to September 30, down from $36.5 billion.

Death and disability claims were up to $8.2 billion from $7.5 billion. But surrenders and terminations were down slightly to $459 million from $466 million.

The other major cost for life insurers is commissions. Upfront payments fell to $1.4 billion from $1.5 billion, but it was a different story with trails, rising to $2.7 billion from $2.4 billion.

Individual disability insurance continues to be a black hole for life insurers, but is improving.

In the year to September 30 the sector recorded a $292 million loss – a considerable improvement on the $491 million loss the previous year.

Gross policy revenue was up to $3.2 billion from $3 billion. Total expenses fell to $3.1 billion from $3.2 billion.

Individual lump sum also suffered a decline in profitability, down to $1 billion from $1.3 billion.

Gross policy revenue was up to $9 billion from $8.3 billion and, despite a decline in investment revenue, total revenue was $7 billion, up from $6.8 billion.

Lump sum total expenses grew to $5.4 billion from $4.9 billion.

Group life profitability continues to improve, with insurers reporting a $401 million after-tax profit compared with $343 million the previous year.

Gross policy revenue was flat at $6.4 billion, as was total revenue at $4.7 billion. Total expenses fell to $4.1 billion from $4.2 billion.

Overall, life insurers’ after-tax profit was down to $2.6 billion in the year to September 30 from $3 billion the previous year.