Bad weather and soft market conditions have drained underwriting profitability for insurers, with a collective underwriting loss of $513 million in the year to June 30.

APRA’s half-yearly General Insurance Bulletin reveals gross written premium revenue of $31 billion, up 1% from the previous year.

Insurers earned $29.2 billion in revenue, with reinsurers taking $1.8 billion.

Gross incurred claims climbed 11% to $25.6 billion as severe weather events including the Victorian bushfires sent costs soaring.

The industry underwriting result was a dramatic fall from the $2.1 billion profit recorded previously.

Insurers and reinsurers reported total assets of $94.2 billion in the period, an increase of $3.1 billion or 3% on the previous year.

Industry total liabilities amounted to $65.8 billion, up $300 million or 0.4%.

Average capital coverage was 1.94 times APRA’s minimum capital requirements, up from a ratio of 1.91.