General insurers have recorded much stronger net profits for the March quarter compared to the corresponding quarter last year.

They reported $1 billion total net profit for the March 2012 quarter, up from $490 million, Australian Prudential Regulation Authority (APRA) figures released on Friday show. 

Last year’s result showed the impact of the natural disaster claims from January and February.

This year insurers wrote $8.5 billion of gross written premium, compared to $7.9 billion in the corresponding quarter last year.

Gross incurred claims were $6.6 billion, compared with $16.5 billion.

The drop in claims was spread across most insurance sectors.

Public and product liability claims fell from $310 million to $282 million, while professional indemnity claims fell from $246 million to $201 million. Employers’ liability claims dropped from $312 million to $214 million. CTP motor vehicle claims fell from $710 million to $560 million.

Brokers also benefitted, with commissions growing from $750 million to $796 million.

Insurers continue to wind down their equity holdings. At March 31 last year, they held $2.1 billion in equities, which fell to $1.65 billion this year.

The funds were moved mainly to fixed interest investments, which grew from $43.3 billion to $45.3 billion.

Net assets were $30.2 billion, compared to $28.3 billion a year earlier.