The insurance industry’s net profit plummeted by more than a third to $3.5 billion for the year ending March 31 as higher claims expenses took their toll, according to the Australian Prudential Regulation Authority (APRA).

The regulator’s quarterly general insurance performance report reveals net premium revenue rose 4.5% to $22.5 billion, with insurers accounting for 94% of the total and reinsurers the remainder.

The industry’s net loss ratio rose almost 10 percentage points to 64.2%, while the underwriting expense ratio was up marginally to 27.4%.

The underwriting surplus was down by more than 50% to $1.9 billion.

At the end of the period the industry held total assets of $90.6 billion, a 4.6% increase on the previous period. Net assets were up marginally to $25.5 billion.