The industry lost $428 million in the March quarter as earnings took a hit from the NSW/Queensland floods, after a $100 million net profit in the previous quarter, the Australian Prudential Regulation Authority (APRA) says.

APRA says in its latest statistics update that the February/March catastrophe – the country’s most costly flood event on record – led to “significantly higher” gross incurred claims during the period.

Gross incurred claims rose 47.6% to $15.4 billion from the preceding December quarter and the gross loss ratio worsened sharply to 99% from 61%, while gross earned premium fell 4.7% to $14.9 billion

Weaker investment results also dampened March quarter earnings, with the industry booking a $1.6 billion investment loss, worse than the $300 million deficit recorded in the December quarter.

APRA says the “large investment loss” was driven by a rise in bond yields during the quarter, resulting in unrealised losses on interest bearing investments.

For the 12 months to March, the industry improved its net profit 16.7% to $1.3 billion from a year earlier.

APRA says the results reflect stronger underwriting earnings, which more than doubled to $4.7 billion from $1.6 billion.

The regulator says insurers reported increases in gross earned premium in most classes of business, the result of moves by the industry to adjust rates upwards.

Gross earned premium increased 11% to $58.9 billion during the year. APRA says householders, domestic motor, fire and industrial special risks, public and product liability and professional indemnity lines saw “larger increases” in rates.

At the same time gross incurred claims also went up, by 7.3% to $44.6 billion, during the year mainly because of the February/March floods.

In a separate update, APRA provided individual insurers’ results for the March quarter.

Following are the results of key insurers (in alphabetical order):

• AIG Australia recorded gross earned premium of $265 million, gross incurred claims of $191million and a net loss of $37 million
• Allianz Australia had $1.45 billion in gross earned premium, nearly $1.82 billion in gross incurred claims and made a $182 million net loss
• Hollard Insurance Company posted $428 million in gross earned premium, $407 million in gross incurred claims and $86 million in net profit
• IAG booked nearly $2.25 billion in gross earned premium, $1.84 billion in gross incurred claims and $64 million net loss
• QBE Insurance Australia had $1.52 billion in gross earned premium, nearly $1.23 billion in gross incurred claims and $34 million in net loss
• Suncorp-owned AAI logged nearly $2.23 billion in gross earned premium, $2.66 billion in gross incurred claims and $55 million net profit.