The life industry recorded a $1.2 billion net profit for the 12 months to December, against a $100 million loss in the corresponding period of 2020, according to a regular update from the Australian Prudential Regulation Authority (APRA).

The return to profitability was achieved based in part on a better result from individual disability income insurance (DII) and other risk products.

“The overall performance of the life insurance industry is improving,” APRA said, calling the results “a significant improvement from the previous year primarily owing to improved market performance and to a lesser extent, growth in premium revenue”.

Net policy revenue increased 2.8% to $14.8 billion and investment revenue yielded $3.8 billion compared with a $2.3 billion deficit a year earlier.