Net policy revenue for retail life insurance products in the last calendar year was $6.6 billion, up from $6 billion in 2011, according to the Australian Prudential Regulation Authority.

Investment revenue was $3.3 billion, up from $2.2 billion, and total expenses were $7.9 billion compared with $6.6 billion in 2011.

Net after-tax profit for the retail life market was $1.3 billion, up from $1.2 billion.

In the group life market, net policy revenue was $5.2 billion last year, up from $4.5 billion in 2011.

There was a dramatic turnaround in investment revenue, with group life insurers reporting a $23 billion result last year compared with a $969 million loss in 2011.

Group insurers’ total expenses were $27.7 billion last year, up from $4.4 billion. The sector made a $1.4 billion after-tax profit, rising from $1.3 billion.

The jump in total expenses is mainly attributable to a movement in net policy liabilities from a negative $2 billion in December 2011 to $20.7 billion 12 months later.

Total assets for the life insurance industry at December 31 were $247.3 billion. With liabilities taken into account this fell to $226.6 billion.