Rising premiums helped insurers and reinsurers record their most profitable September year since 2013/14, latest Australian Prudential Regulation Authority (APRA) figures show.

Net profit grew 28% to $3.9 billion in the year to September 30 as the industry benefitted from a hardening market following a long period of depressed pricing.

Historical performance data in the APRA report shows earnings have climbed to their highest level since 2014, after slumping in 2015.

Gross written premium increased to $47.2 billion from $45.1 billion the previous year, while gross earned premium grew 3% to $46.4 billion and gross incurred claims fell 7% to $30.9 billion.

Underwriting profit gained 9%, with premium increases and lower natural catastrophe costs assisting short-tail householder and domestic motor business, while long-tail profits were affected by smaller reserve releases in compulsory third party and employers’ liability classes.

Investment income grew 25.1% to $2.5 billion, buoyed by higher unrealised gains from interest-bearing investments. “However, it remains at a historically low level,” APRA says.

Statistics for the period are based on data from 85 primary insurers and 10 reinsurers licensed to operate in Australia.

In a separate report APRA has released data on individual insurers’ earnings results covering various financial years across the 12 months to June 30.

Following are the results of key primary insurers (in alphabetical order):

• AIG Australia had $667 million in gross earned premium, $514 million in gross incurred claims and $13 million in net profit
• Allianz Australia logged $4.72 billion in gross earned premium, $3.51 billion in gross incurred claims and $361 million net profit
• Hollard Holdings Australia recorded $828 million in gross earned premium, $553 million in gross incurred claims and $11 million in net profit
• IAG posted $11.52 billion in gross earned premium, $8 billion in gross incurred claims and $1.03 billion in net profit
• QBE Insurance Australia reported $18.85 billion in gross earned premium, $15 billion in gross incurred claims and a $1.64 billion net loss
• Suncorp Insurance recorded $9.46 billion in gross earned premium, $6.53 billion in gross incurred claims and $666 million in net profit.

Selected reinsurers (in alphabetical order):

Munich Re had $921 million in gross earned premium, $563 million in gross incurred claims and an $11 million net loss
• Swiss Re recorded $745 million in gross earned premium, $519 million in gross incurred claims and $77 million net profit.