The $400 million Sydney hailstorm capped a stormy 2007 final quarter that plundered 71% of insurers’ underwriting profits, according to the Australian Prudential Regulation Authority (APRA).

The regulator’s Quarterly General Insurance Performance revealed final-quarter underwriting profits of $358 million, a fraction of the $1.26 billion returned in 2006.

Direct insurers incurred a 79% reduction in underwriting results, returning $216 million, while net profit slumped 50% to $648 million.

Reinsurers sustained a 44% dip in net profit.

Claims in the last quarter jumped $1.17 billion to $3.55 billion, eroding a $229 million growth in premium revenue, which now stands at $5.4 billion.

Total industry net profit was $720 million, against $1.46 million in the prior period. Overall, the net loss ratio surged from 46% to 66%.

Investment income edged ahead $6 million to $897 million during the period, while total assets increased from $84.6 billion to almost $90 billion.

Net assets climbed $4.5 billion to a shade under $26 billion.