New Zealand’s Accident Compensation Corporation (ACC) has reported a drop in profits after claims increased and investment income fell.

The national injury insurer recorded a net profit for the year to June 30 of $NZ2.14 billion ($1.94 billion), down from $NZ4.93 billion ($4.47 billion) the previous year.

The government accident insurer’s annual report says the 40-year-old scheme is ahead of budget and on target to become fully funded by 2019.

Claim volumes increased to 24 per 1000 people from 23 the previous year, and this put pressure on rehabilitation performance, with 67.8% of clients returned to independence within 70 days, down from 70.3%.

“We are taking a number of actions that will help to ensure we can deliver our targeted rehabilitation performance, despite the higher number of claims,” the report says.

“These actions will also ensure we are able to be more responsive in future as claim volumes change.”

The ACC’s performance remains comparable with Australian workers’ compensation programs, the report says.

Client satisfaction grew to 75% from 68% and privacy breaches were halved to a rolling three-month average of 19.

New ACC Minister Nikki Kaye says the scheme is making good progress and she welcomes a three-year program to improve customer service. “It is my expectation that this will help to increase public trust and confidence, and support more of our most vulnerable.”