The life industry made a $318 million after-tax net profit from continuing operations in the June quarter, down from $374 million a year earlier, according to a prudential update.

The investment result was a $2.55 billion gain, up from $2.14 billion, but underwriting profit fell to $329 million from $613 million.

Industry insurance revenue grew to $6.12 billion from $5.94 billion and the insurance service expense rose to $5.81 billion from $5.23 billion.

By product group, individual disability income insurance made an underwriting gain of $85 million and individual lump rum risk delivered a $139 million profit.

However, group disability income insurance and group lump sum risk lost $26 million and $40 million respectively.

The industry’s prescribed capital amount coverage ratio eased to 1.81 from 2.06 a year earlier, while the capital base reduced to $15.12 billion from $16.47 billion.

The Australian Prudential Regulation Authority June-quarter statistics are based on data from 22 entities.