General insurers and reinsurers achieved a combined 6.2% rise in underwriting profit to $3.5 billion last year, Australian Prudential Regulation Authority data shows.

Improved earnings stemmed from premium increases across almost all classes, offsetting the impact on most short-tail property lines of December’s Sydney hailstorm, which has run up more than $871 million in insured losses.

However, after-tax net profit fell 1% to $3.3 billion, partly affected by a 15.8% decrease in investment income to $2.2 billion.

Gross written premium increased to $48.3 billion from $44.9 billion, and gross earned premium grew to $47.3 billion from $45.2 billion.

Gross incurred claims spiked 2.7% to $34 billion.

The prudential regulator’s general insurance statistics are based on data from 86 primary insurers and 10 reinsurers.

Primary insurers’ underwriting profit improved to $3.4 billion from $3.2 billion and reinsurers increased profit by $24 million to $86 million.