The life industry made a profit of $121 million from continuing operations after income tax in the March quarter, down from $332 million a year earlier.

The Australian Prudential Regulation Authority data also shows a sharp drop in investment returns, to $282 million from $800 million.

The industry’s underwriting profit also tumbled, to $249 million from $425 million, as incurred claims worsened to $3 billion from $2.97 billion.

Among key product classes, individual disability income insurance made an underwriting profit of $250 million in the quarter; group disability income insurance made $44 million; individual lump sum risk made $79 million; and group lump sum risk incurred a $153 million loss.