(Re)insurers’ combined after-tax net profit grew 7.2% to $3.1 billion in the year to June 30, partly driven by higher underwriting income and gross written premium (GWP), according to Australian Prudential Regulation Authority industry figures.

Underwriting profit surged to $3.51 billion from $2.22 billion the previous year, and GWP increased to $45.38 billion from $43.88 billion.

Countering that was an 18.1% slump in investment income to $2.4 billion, as unrealised losses from changes in net market value widened sharply to $712 million from $25 million.

APRA’s statistics for the year to June 30 are based on 94 primary insurers and 10 reinsurers licensed to operate in Australia.

The industry’s net loss ratio improved by two percentage points to 64%, and the return on net assets climbed 0.4 points to 10.8%.

Gross incurred claims were up 6.7% at $33.8 billion, driven by Cyclone Debbie and other catastrophes.

The net underwriting combined operating ratio strengthened to 89% from 93%.

Primary insurers’ GWP increased to $42.97 billion from $40.9 billion.

For the 10 reinsurers, combined GWP declined to $2.41 billion from $2.98 billion and gross incurred claims blew out to $2.47 billion from $1.49 billion.

Insurers saw household GWP grow to $8.14 billion from $7.84 billion, gross incurred claims widen to $5.38 billion from $4.53 billion, the net loss ratio worsen by two points to 64% and the combined operating ratio deteriorating by the same margin to 92%.

In fire and industrial special risk, GWP grew to $3.97 billion from $3.65 billion, gross incurred claims moved to $3.61 billion from $2.74 billion, the net loss ratio improved two points to 71% and the combined operating ratio was 113%, improving from 117%.

Domestic motor GWP increased to $9.01 billion from $8.51 billion and gross incurred claims blew out to $8.37 billion from $7.58 billion. The net loss ratio worsened to 78% from 76% and the combined operating ratio deteriorated to 101% from 98%.

Compulsory third party motor GWP grew to $4.19 billion from $3.92 billion and gross incurred claims fell to $2.56 billion from $3.06 billion. The net loss ratio improved to 51% from 71% and the combined operating ratio strengthened by 20 points to 62%.