New Zealand insurance company profits jumped 30% to $NZ2.08 billion ($1.92 billion) in the past financial year, driven by gross written premium (GWP) growth and positive claims experience.

A new report from KPMG says GWP rose 9% to $NZ6.96 billion ($6.44 billion) as rate increases from 2018 flowed through. Growth was seen across the market, with IAG, Vero and Hollard among the largest contributors to the increase.

Net claims expense decreased 6% to $NZ2.4 billion ($2.2 billion) after a period of benign weather and little in the way of other natural perils.

“This has been a welcome experience after a number of years of severe weather events and natural disasters,” the report says.

Insurance Council of New Zealand data shows four natural disasters occurred in the past financial year at a cost of $NZ14.7 million ($13.59 million), while nine events in the preceding year cost $NZ263.4 million ($243.6 million).

Company result announcements indicate the strong profits will contribute to “significant and necessary investment” in products and services, including digital offerings, that will allow insurers to better respond to changing customer needs, KPMG says.

Trends suggest the past year was a favourable period for catastrophes, rather than a return to normal conditions, while rates are levelling off as the market heads into 2020.

The New Zealand General Insurance Insights Dashboard is compiled using audited financial statements filed with the New Zealand Companies Office.

Results are included in KPMG’s annual General Insurance Update which also highlights local results from a global survey of CEOs.

New Zealand CEOs are confident about business growth over the next three years, while recognising that they must embrace cultural and technological change and increase the focus on customers.

But compared with their global counterparts who see advantages in empowering employees to attempt innovations even if they may fail, New Zealand CEOs are less comfortable with the concept.