Australian insurers and reinsurers recorded a combined net profit of $3.1 billion for the year to September 30, up from $2.4 billion the previous year.

The latest statistics from the Australian Prudential Regulatory Authority (APRA) show net earned premium dropped 3.4% to $30.6 billion.

Of this, insurers wrote $28.8 billion and reinsurers $1.8 billion.

Gross incurred claims dropped 7.1% to $31.1 billion, reflecting decreases in short-tail property class claims.

The net loss ratio for the industry was 66%, down from 70%, and investment income dropped $500 million to $2.9 billion.

The industry underwriting result was a profit of $2.6 billion, compared with $1.1 billion the previous year.

“The higher underwriting result was mainly related to the decrease in net incurred claims,” APRA says.