WorkSafe Victoria has recorded a $1.08 billion profit for the year to June 30, recovering from a $676 million loss the previous year via increased investment income and changes to the calculation of claims liability.

The state workers’ compensation scheme also benefitted from its lowest injury claims rate on record – 7.53 claims per million hours worked, down 6.6%.

Profit from insurance operations, which strips out investment returns and interest rate shifts, fell to $119 million from $385 million. The report says work has begun to identify improvements.

Lower projected claims led to an actuarial release of $179 million. Gross premium increased slightly to $1.91 billion and net investment income soared to $1.56 billion from $421 million.

Claims expenses fell 49% to $1.5 billion due to changes in discount rates and a lower-than-expected inflation rate affecting the claims calculation.

Agents’ fees increased 15% to $238.56 million, while the performance of the six insurance company “agents” on claims management and return to work was rated “steady”.

WorkSafe made an underwriting profit of $226.53 million, compared with a loss of $1.15 billion the previous year.

Chairman David Krasnostein says a three-year red tape reduction program has identified $48 million a year in savings to employers. Measures include new online services.

The average premium of 1.298% is the lowest in the scheme’s history and the lowest in the country. WorkSafe’s funding ratio was 108%.