The insurance industry's net profit after tax slipped 5.5% to $5.2 billion for the year ending June 30 2007, according to the Australian Prudential Regulation Authority.

Its latest quarterly general insurance performance survey indicates net premium revenue was $22.1 billion for the financial year, an increase of 3% on the previous year. The insurers wrote 94.6%, or $20.9 billion, with reinsurers accounting for the remainder.

Net incurred claims amounted to $12.7 billion, up 2.1% on the 2005/06 financial year. The industry's net loss ratio declined a percentage point to 57%, and net assets increased 4.8% to $26.2 billion.

There was no change in the insurance industry's underwriting expense ratio, which stayed at 27% as total underwriting expenses rose by 3.8% to $5.9 billion.