The Australian general insurance industry recorded strong results in the year to June, with net profit after tax rising to $4.6 billion, up from $2.6 billion in the corresponding period last year.

Insurers accounted for $4.1 billion or 88.2% of industry profit.

Return on net assets rose from 9.5% last year to 15.7% this year, while industry net premium revenue rose to $25.4 billion, up 4.8% on the previous first half.

Of this, insurers wrote 94.2% or $24 billion, while reinsurers wrote the remaining $1.5 billion.

Industry net incurred claims fell 8.2% from the previous year to $16.3 billion. Insurers bore the brunt, with $15.6 billion in claims, while reinsurers recorded claims of $0.7 billion.

The industry’s net loss ratio fell from 73% last year to 64% this year. Reinsurers’ net loss ratio fell from 67% last year to 48% this year.

The general insurance industry’s underwriting expense ratio for the year remained stable at 26%. Total industry underwriting expenses increased 3.3% from last year to $6.6 billion this year.

The industry’s underwriting result improved significantly, rising from $100 million last year to $2.5 billion this year.

Investment performance also improved, rising 11.5% from last year to $4.8 billion.

At June 30 total assets for the general insurance industry were $99.2 billion, up 4.2% from the previous year. Insurers accounted for $90.2 billion of this figure.