Australia’s insurers and reinsurers earned a combined after-tax net profit of $2.9 billion last year, up 22.7% compared with 2015, latest statistics from the Australian Prudential Regulation Authority show.

The results, drawn from data provided by 99 insurers and 10 reinsurers, were largely lifted by strong underwriting and investment results.

Underwriting profit surged 34.8% to $3 billion, and investment income gained 24.8% to $2.8 billion.

The industry’s return on net assets grew to 10.5% from 8.7%, gross incurred claims fell 2.6% to $31.1 billion, net incurred claims declined 5.1% to $19.8 billion, and net loss ratio improved to 64% from 67%.

Gross written premium (GWP) increased to $44.6 billion from $43.3 billion.

The 99 insurers recorded GWP of nearly $42 billion, up from $40.7 billion, and underwriting profit surged to $3.04 billion from $2.18 billion.

Personal lines insurers’ net profit increased to $324 million from $194 million, net earned premium grew to $4.4 billion from $4.1 billion, and underwriting profit improved to $669 million from $444 million.

Commercial lines insurers’ net profit nearly doubled to $194 million, net earned premium dropped to $3.01 billion from $3.09 billion, and underwriting profit more than doubled to $328 million.

Household insurance GWP grew to $7.9 billion from $7.7 billion, gross incurred claims fell to $4.5 billion from $5.6 billion, the net loss ratio improved to 63% from 71%, and the combined operating ratio strengthened to 91% from 99%.

In fire and industrial special risk GWP grew to $3.85 billion from $3.75 billion, gross incurred claims fell to $2.68 billion from $4 billion, the net loss ratio strengthened to 65% from 89%, and the combined operating ratio improved to 107% from 134%.

Domestic motor vehicle GWP grew to $8.7 billion from $8.2 billion, gross incurred claims blew out to $7.9 billion from $7.2 billion, the net loss ratio deteriorated to 78% from 74%, and the combined operating ratio worsened to 100% from 96%.

Compulsory third party motor GWP climbed to $4.2 billion from $3.6 billion, gross incurred claims increased to $2.8 billion from $2.6 billion, the net loss ratio worsened to 63% from 61%, and the combined operating ratio deteriorated by one percentage point to 74%.

The 10 reinsurers’ GWP increased to $2.61 billion from $2.57 billion and their gross incurred claims grew to $1.96 billion from $1.23 billion. The net loss ratio worsened to 75% from 64% and the combined operating ratio blew out to 103% from 97%.

The reinsurers made an underwriting loss of $47 million compared with a $40 million profit in 2015.