Australian life insurers’ gross policy revenue totalled $17.3 billion last calendar year, up from $15.3 billion in 2012.

However, industry net profit fell 31.3% to $2 billion, according to figures from the Australian Prudential Regulation Authority.

Death and disability claims grew to $6.2 billion from $5.4 billion, while policy surrenders and terminations increased to $577 million from $545 million.

Upfront commissions grew to $1.6 billion last year from $1.5 billion in 2012. The increase in trail commissions was smaller, to $2.3 billion from $2.1 billion.

Life insurers also suffered a drop in investment income, down to $197 million from $220 million. Industry investment portfolios totalled $240.5 billion at December 31, compared with $235.2 billion a year earlier.

Total assets at December 31 were $273.8 billion, against total liabilities of $252.4 billion, meaning net assets remained flat at $21.4 billion. A year earlier, the asset and liability figures were $266.8 billion and $245.4 billion respectively.