Life insurers’ premiums continued to outstrip policy payments in the year to March 31, according to figures from the Australian Prudential Regulation Authority.

Industry net premiums for the year totalled $49.9 billion, while net policy payments were $45.4 billion.

But net profit fell 35% to $1.99 billion.

Death and disability claims grew to $6.4 billion from $5.5 billion the previous year.

The industry also recorded a rise in policy terminations, up to $565 million from $553 million.

Adding to the industry’s costs were rising commissions for new business and trails.

New business commissions totalled $1.6 billion, compared with $1.5 billion the previous year. Trails grew to $2.3 billion from $2.1 billion.

Total assets at March 31 were $276.7 billion, compared with $252.9 billion a year earlier, but return on net assets fell to 9.3% from 15.1%.