The WA Insurance Commission’s Motor Vehicle Fund, which backs the state’s catastrophic injuries support program, recovered from a large loss to hit the black last financial year.

It made an underwriting profit of $37.6 million, after incurring a $98.1 million deficit in 2016/17, its first full year of operation.

Net premium revenue increased to $175.1 million from $102.2 million, while net claims incurred fell to $122.2 million from $179.6 million.

“The principal reason for the initial underwriting loss was that premium revenue was not collected from motorists in advance of the [scheme’s] start date, which meant many motorists did not have to pay for the full additional cover they received in the first year,” the commission says.

The Third Party Insurance Fund, the state’s compulsory third party scheme, increased its underwriting profit to $26 million from $20 million.

“This is an excellent result because it means our core business is financially sustainable and we have sufficient revenue to continue to pay claims and deliver insurance services,” the commission says.

The commission made an overall net profit of $277.7 million, up from $193.1 million.