The industry’s gross written premium (GWP) increased in the year to March 31 on growth in domestic motor and home and contents insurance, but profits fell.

Total net profit was $4.7 billion, down 11%, according to Australian Prudential Regulation Authority (APRA) figures.

The 105 insurers in the general insurance sector performed better than the 12 reinsurers regulated by APRA.

Insurers’ GWP grew 5% to $38.99 billion and they paid $9.3 billion for reinsurance, up 4%.

Gross claims increased 4% to $24.6 billion and the insurers recorded a combined profit of $4.43 billion, down 7%. However, their combined operating ratio improved to 85% from 92%.

APRA notes that although claims were higher than in the previous year, this was offset by a 37% rise in reinsurance recoveries to $5 billion.

Reinsurers reported a 45% drop in profit to $280 million.

They earned GWP of $2.4 billion, up 11%, but their claims increased 29% to $1.14 billion and the combined operating ratio deteriorated to 79% from 70%.

Insurers recorded a net loss ratio of 60%, down from 65%, and reinsurers’ ratio was 48% compared with 40% in the 12 months to March 31 last year.

The combined industry’s investment income slumped 42% to $3 billion due to revaluations related to higher government bond yields.

APRA’s figures show GWP for household policies grew 8% to $7.38 billion and gross incurred claims fell 14% to $3.08 billion. The combined operating ratio for home and contents was 80%.

Commercial motor insureds paid $2.08 billion in premiums, up 6%, and claims fell 1% to $1.29 billion. The combined operating ratio was 89%.

Domestic motor GWP increased 4% to $7.87 billion and gross claims gained 5% to $5.29 billion. The combined operating ratio was 93%.

Compulsory third party motor GWP grew 9% to $3.35 billion and claims fell 3% to $2.68 billion. The combined operating ratio was 88%.

Fire and industrial special risk GWP gained 5% to $3.98 billion and claims were up 31% to $1.7 billion. The combined operating ratio was 93%.

Professional indemnity GWP increased 4% to $1.51 billion while claims grew 41% to $974 million. Public and product liability GWP gained 3% to $2.2 billion while claims fell 5% to $1.3 billion.