Life insurance net after-tax profit fell to $2.4 billion in the year to March 31, compared with $2.9 billion the previous year, according to Australian Prudential Regulation Authority data.

Premium grew to $18.2 billion from $16.4 billion, but this was offset by a rise in claims to $9 billion from $7.7 billion.

There was also a slight rise in surrenders and terminations, to $487 million from $452 million.

Commissions increased, with upfronts totalling $1.6 billion, up from $1.5 billion. Trails increased to $2.6 billion from $2.4 billion.

Income protection insurance after-tax losses blew out to $427 million, compared with a loss of $19 million in the previous year.

The segment was hit by a decline in total revenue to $1.9 billion from $2.3 billion, while expenses grew to $2.6 billion from $2.3 billion.

After-tax profit in the lump sum market fell to $771 million from $1 billion the previous year.

Total lump sum revenue was up slightly to $7.8 billion from $7.3 billion, offset by a significant rise in expenses to $6.6 billion from $5.8 billion.

After-tax profit in the group lump sum market also fell, to $265 million from $386 million.

Revenue was flat at $4.7 billion, with expenses recording a modest rise to $4.3 billion from $4.1 billion.

One bright spot was a rise in after-tax profit for group income protection cover, up to $79 million in the year to March 31 from $21 million the previous year.

This came despite a massive decline in total revenue to $239 million from $1.3 billion.

Expenses fell to $131 million from $1.2 billion.