Turbulent investment markets continued to pummel Victoria’s workers’ compensation system in the year to June 30, with the state’s WorkSafe workplace safety agency booking a net loss of $1.25 billion on the back of a $587 million loss in the previous year.

Investments returned a loss of $1.3 billion, up 15%.

An 85% writedown in projected liabilities to $78 million took its toll on the insurance profit, driving it down 71% to $277 million, although WorkSafe says this was mitigated by strong claims management.

However, the full-year result shows a considerable improvement on the half-year picture, in which the net loss stood at $1.42 billion and the funding ratio was 94%, compared with the eventual 97%. The Victorian Government’s target range is 90-110%.

The financial results take the shine off an improving workplace safety picture in Victoria, with the number of injury claims falling to a new record low of 28,689 or an injury rate of 10.8 claims per 1000 workers, also the lowest on record.

Worksafe Victoria also points to “record low” employer premiums achieved in the financial year. InsuranceNEWS.com.au was unable to ascertain from Worksafe whether these rates are likely to be sustained.