The general insurance industry suffered a 34.9% decline in underwriting profit to $2.3 billion last year, squeezed by claims losses from the bushfires and Townsville flood catastrophes.

A strengthening of claims reserves in long-tail classes also affected earnings, the Australian Prudential Regulation Authority (APRA) says in its regular update.

Net profit after tax fell 7.9% to $3.1 billion for the 12 months to December 31 and the net loss ratio worsened four percentage points to 69%.

Gross incurred claims increased 11.6% to $38.1 billion, faster than the 5.8% rise in gross earned premium to $50 billion.

The APRA data is based on inputs from 96 insurers. In a separate report, APRA provided individual insurers’ earnings for the December quarter. Following are the results of key primary insurers (in alphabetical order):

• AIG Australia had $228 million in gross earned premium, $127 million in gross incurred claims and made a $4 million net loss
• Allianz Australia recorded $1.31 billion in gross earned premium, $979 million in gross incurred claims and $63 million in net profit
• Hollard Insurance Company had $326 million in gross earned premium, $234 million in gross incurred claims and made a net loss of $1 million
• IAG had $2.05 billion in gross earned premium, $1.93 billion in gross incurred claims and $98 million in net profit.
• QBE Insurance Australia logged $1.33 billion in gross earned premium, $1.03 billion in gross incurred claims and $72 million in net profit
• Suncorp-owned AAI had $2.08 billion in gross earned premium, $1.63 billion in gross incurred claims and registered a $22 million net profit.

The results of selected reinsurers:

• Munich Re had $367 million in gross earned premium, $119 million in gross incurred claims and $163 million net profit
• Swiss Re recorded $337 million in gross earned premium, $303 million in gross incurred claims and $8 million in net profit.