Life insurers are still losing money on income protection cover, according to the latest industry data from the Australian Prudential Regulation Authority.

The segment recorded a loss of $500 million in the year to September 30, compared with a $195 million loss the previous year.

Gross premium revenue was up to $3 billion from $2.8 billion, but this was offset by a rise in total expenses to $3.3 billion from $2.7 billion.

Group life recorded a turnaround, with a profit of $343 million following a loss of $210 million the previous year.

Gross policy revenue was up to $6.4 billion from $5.5 billion, while total expenses fell to $4.2 billion from $4.3 billion.

The most profitable segment of the Australian life insurance business was individual lump sum, with an after-tax profit of $1.1 billion in the year to September 30, up from $850 million the previous year.

Gross policy revenue was $8.3 billion, up from $7.6 billion. Total expenses fell to $4.9 billion from $5.1 billion.

Overall, life insurers’ after-tax profit was $3 billion, up from $2.2 billion. Net premium was $60 billion, compared with $55 billion the previous year.

Death and disability claims increased to $7.5 billion from $6.8 billion.

Some $470 million of policy maturities were recorded, compared with $486 million the previous year.

Lapses declined significantly, to $466 million from $522 million.

Upfront commission were flat at $1.5 billion, and trails were static at $2.43 billion.

Policy acquisitions costs, including commissions, accounted for 30.8% of life insurers’ operating costs and 57.6% of maintenance costs.