Insurers and reinsurers made a combined net profit of $2.6 billion in the year to March 31, the Australian Prudential Regulation Authority (APRA) says.

The 17.4% rise on the previous year was driven partly by higher investment income, which more than doubled to $3 billion.

Gross incurred claims increased to $35.5 billion from $31.3 billion, caused by a spike in catastrophe-related claims including from Cyclone Debbie.

Gross written premium (GWP) grew to $45.05 billion from $43.8 billion and net earned premium was up 4.8% to $31.8 billion. Underwriting profit declined 22% to $2.3 billion and the net loss ratio deteriorated to 68% from 64%.

The APRA figures are based on data from 105 insurers, comprising 95 primary insurers and 10 reinsurers.

The primary insurers’ combined GWP increased to $42.7 billion from $41 billion, gross incurred claims grew to $32.9 billion from $30 billion and the net underwriting combined operating ratio worsened to 92% from 90%.

GWP for household policies increased to $8.03 billion from $7.78 billion, gross incurred claims grew to $5.6 billion from $5.2 billion, the net loss ratio deteriorated to 69% from 66% and the combined operating ratio worsened by three percentage points to 97%.

In fire and industrial special risk, GWP grew to $3.9 billion from $3.7 billion, gross incurred claims increased to $3.76 billion from $3.73 billion and the combined operating ratio was 116%.

Among domestic motor insurers, GWP grew to $8.86 billion from $8.37 billion, gross incurred claims surged to $8.45 billion from $7.37 billion and the combined operating ratio blew out to 101% from 97%.

Compulsory third party motor GWP moved to $4.4 billion from $3.68 billion. Gross incurred claims grew to $2.89 billion from $2.5 billion and the combined operating ratio weakened to 72% from 68%.

The 10 reinsurers’ GWP fell to $2.35 billion from $2.76 billion, while gross incurred claims grew to $2.61 billion from $1.24 billion and the combined operating ratio weakened to 105% from 96%.

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