The life industry reported lower earnings in the September quarter as investment returns slumped and key risk products performed weakly.

Profit after income tax dropped to $284 million from $459 million a year earlier, according to Australian Prudential Regulation Authority data released last week.

The investment result was about $1.76 billion, a 34.8% decline. Insurance revenue fell to $5.96 billion from $6.18 billion, and the insurance service expense rose to $5.84 billion from $5.43 billion.

The industry’s underwriting result crashed 63.8% to $231 million as some lines recorded deficits.

Group disability income insurance made an underwriting loss of $171 million following a $129 million profit a year earlier, while the individual lump sum loss fell slightly to $83 million from $88 million.

Individual disability income insurance’s gain moderated to $300 million from $384 million, and group lump sum fell to $15 million from $47 million.

The authority’s quarterly industry update is based on data from 22 entities.