Compulsory third party (CTP) motor vehicle produced the worst loss ratio among nine key business lines last year, new claims data shows.

However, its estimated loss ratio of 87.4% is an improvement on the previous year’s 91.6%, according to the Australian Prudential Regulation Authority figures.

The regulator attributes the improvement to lower claims costs and increased earned premium. It expects NSW CTP reforms last December to put greater downward pressure on premiums and claims in the state this year.

CTP grew gross earned premium to $4.13 billion from $3.77 billion, while estimated cost of claims increased to $3.61 billion from $3.45 billion.

Public and product liability was the best-performing line, with a 56% loss ratio, improving from 58.2%. It had gross earned premium of $2.2 billion and gross claims costs of $1.2 billion.

The other results show:

• Professional indemnity achieved a 69.8% loss ratio (88.4% in 2016), $1.6 billion in gross earned premium and $1.1 billion in gross claims costs
• Employers’ liability returned a 79.7% loss ratio (83.5% in 2016), $1.6 billion in gross earned premium and $1.2 billion in gross claims costs
• Householders logged a 60.3% loss ratio (50.5% in 2016), $8.3 billion in gross earned premium and $5 billion in gross cost of claims
• Domestic motor vehicle produced a 70.9% loss ratio (68.2% in 2016), $8.7 billion in gross earned premium and $6.2 billion in gross cost of claims
• Fire and industrial special risk had an 80.1% loss ratio (78% in 2016), $4.3 billion in gross earned premium and $3.5 billion in gross claims costs
• Commercial motor vehicle recorded a 74.4% loss ratio (75.2% in 2016), $2.2 billion in gross earned premium and $1.7 billion in gross cost of claims
• Reinsurance had a 56.8% loss ratio (65.6% in 2016), $6.2 billion in gross earned premium and $3.5 billion in gross claims costs.