General insurers’ gross incurred claims grew 21.8% to $31.2 billion in the year to March 31 amid higher catastrophe claims, industry data shows.

Claims mainly increased in compulsory third party and home insurance, the Australian Prudential Regulation Authority (APRA) figures reveal.

Industry investment income grew 61.4% to $4.9 billion, partly due to $1.3 billion in unrealised gains from a change in net market value. This follows a loss of $300 million the previous year.

A drop in the government bond yield also lifted investment income.

The 103 insurers and 12 reinsurers licensed by APRA reported a 0.33% rise in gross written premium (GWP) to $41.53 billion for the year to March.

Fire and industrial special risks gross claims increased 42% to $2.47 billion while GWP fell 6.8% to $3.7 billion. The net loss ratio moved to 70% from 47% the previous year, and the combined operating ratio blew out to 111% from 88%.

Household policies GWP was up 2.9% to $7.59 billion, while the net loss ratio was 60%, up from 49%. The combined operating ratio deteriorated to 88% from 80%.

In domestic motor, GWP improved 1.65% to $8 billion. Gross incurred claims grew 7.7% to $5.7 billion and the net loss ratio was 74%, up from 72%. The combined operating ratio moved to 96% from 93%.

Compulsory third party motor earned GWP of $3.56 billion, up 3.4%. Gross claims were up 31.7% to $3.53 billion and the net loss ratio was 100%, compared with 79% the year before. The combined operating ratio deteriorated dramatically to 113% from 88%.

APRA-regulated reinsurers recorded GWP of $2.18 billion, down 9%, and gross incurred claims fell 5% to $2.19 billion.