Australian insurers and reinsurers’ net profit fell 42.2% to $2.4 billion last year as claims from storms and bushfires took their toll, according to industry data.

Gross incurred claims grew 7.7% to $31.9 billion, while net earned premium fell 1.3% to $31.3 billion and the net loss ratio deteriorated slightly to 67% from 66%.

Gross written premium (GWP) increased to $43.4 billion last year from $41.7 billion in 2014.

Investment income fell 47.5% to $2.2 billion, largely due to an unrealised loss of $1 billion in market value. This compares to a gain of $700 million in 2014.

“The higher gross incurred claims were largely driven by catastrophe events… during the year,” the Australian Prudential Regulation Authority’s industry update says.

Major events last year included storms in NSW and southeast Queensland in April and May, a December storm in Sydney, and bushfires in SA and Victoria in November and December.

The regulator’s report covers 100 insurers and 10 reinsurers.

GWP for the insurers improved to $40.9 billion from $39.2 billion, while gross incurred claims grew to $30.7 billion from $27.4 billion and the net loss ratio deteriorated to 67% from 65%.

Household GWP grew to $7.7 billion from $7.5 billion, gross incurred claims blew out to $5.4 billion from $3.4 billion, the net loss ratio weakened to 71% from 53% and the combined operating ratio was 99%, compared with 81% the previous year.

Domestic motor vehicle GWP was higher at $8.2 billion from $7.9 billion, gross incurred claims grew to $5.8 billion from $5.7 billion, the net loss worsened slightly to 74% from 73% and the combined operating ratio weakened to 96% from 94%.

Compulsory third party GWP climbed to $3.6 billion from $3.5 billion, gross incurred claims fell to $2.4 billion from $3.3 billion, the net loss ratio improved to 61% from 95% and the combined operating ratio strengthened to 73% from 107%.

In fire and industrial special risk GWP moved to $3.77 billion from $3.73 billion, gross incurred claims grew to $3.9 billion from $2.2 billion, the net loss ratio weakened to 91% from 65% and the combined operating ratio deteriorated further to 136% from 107%.

The 10 reinsurers’ combined GWP fell to $2.53 billion from $2.55 billion. Gross incurred claims declined to $1.2 billion from $2.2 billion, the net loss ratio improved to 64% from 73% and the combined operating ratio improved to 98% from 103%.