The insurance industry recorded a net profit of $5.2 billion in the year to June 30, up from $3.7 billion the previous year, the Australian Prudential Regulation Authority says.

Some 109 direct insurers and 12 reinsurers were licensed to conduct general insurance business at June 30.

Gross written premium was $39.89 billion, up from $37.41 billion, while gross incurred claims totalled $24.6 billion, down 11.8% on the previous year.

“The decrease in gross incurred claims for the industry was mainly due to decreases… for the inward reinsurance class of business and the long-tail classes of business,” the regulator’s report says.

Investment income was $4.1 billion, down 24.5% on the previous year.

Total assets were unchanged at $118.1 billion on June 30. Direct insurers accounted for 89.7% of the figure.

Industry assets were offset by liabilities of $87.2 billion, up $100 million.