The Insurance Commission of WA has reported stronger financial results in key operations, as higher claims expenses were offset by increased investment income.

The fund associated with compulsory third party cover reported an underwriting loss of $37.2 million in the year to June 30 – compared with a year-earlier profit of $82.6 million – mainly due to interest rate moves that increased the reserves required to cover future claims.

But investment income jumped to $447.1 million from $275.9 million, and the operating profit increased to $390.2 million from $342.5 million.

Whiplash was the main CTP injury type, resulting in 1299 claims, and physiotherapy was the top treatment provided.

The commission provided insurance policies for 3.4 million registered vehicles, including cars, caravans and trailers, goods and farm vehicles, and motorcycles.

The risk cover fund – insuring government agencies for workers’ compensation, property and liability – reported a $17.9 million profit, reversing a $9.9 million year-earlier loss as an underwriting deficit of $102.8 million was offset by a $120.7 million investment return.

The fund received 5825 new workers’ compensation claims, up 4.1% on the previous year, with 84.9% due to physical injury and the remainder for mental health issues.

The commission says mental health claim numbers rose 23.4%. They are often more complex and have an average cost of $89,563 per claim, compared with $53,444 for all claims. Challenges are also greater in helping workers return to pre-injury roles.

Overall, the annual report shows a strong performance, the commission says. Well-diversified investment portfolios helped defend returns from the impacts of recent market volatility, and work has started on developing a new five-year strategy.

“We’re focused on deepening our understanding of the people and agencies we serve and lifting the value we deliver to the state,” acting CEO Helen Robinson said.  

The annual report is available here.