The industry made a net profit after tax of $1.11 billion in the March quarter, with insurers contributing $990 million and reinsurers $123 million, according to the latest Australian Prudential Regulation Authority data.

The insurance service result – a measure of underwriting performance – was $1.32 billion for the quarter, while investment returns totalled $1.18 billion.

Short-tail property classes comprising householders, commercial motor, domestic motor, and fire and industrial special risk combined for an underwriting profit of $271 million, down from $1 billion in the preceding quarter but better than $192 million a year earlier.

Householders was the only short-tail property class to suffer an underwriting loss in the March quarter – a $190 million deficit after three straight quarters of gains.

“Overall ... it looks to be a relatively strong result for the general insurance industry,” Taylor Fry director Tim Yip told insuranceNEWS.com.au.

While the loss in the householders line seems “poor at first glance”, Mr Yip says it is not surprising given seasonal trends.

He says the March and December quarters are typically tough for the line because of the cyclone season – from November to April – and other extreme weather risks. The March quarter included impacts from Ex-Tropical Cyclone Alfred, which has cost the industry more than $1.2 billion.

“If we look beyond the March-quarter experience, the year-to-date underwriting result for householders is actually [a] $443 million profit,” Mr Yip said.

The December quarter’s underwriting profit of $217 million marked the first time the industry had avoided a loss during that period in the past six years, according to Taylor Fry.

Taylor Fry principal Scott Duncan says average householders rates increased by 11% over the year to March. This was on top of a 20% increase to March 2024.

“That is still a substantial increase,” he said. “These are industry stats … the fact we are far more granular in terms of pricing at an individual property level means there will be some homes that feel more of the increase ... Affordability and availability pressures continue to bite.”