Investment revenue in the life insurance sector nose dived last year, with latest APRA figures putting the total at $1.63 bn compared to $11.33 bn the previous year.

In its quarterly stats for the industry to the year ending 31 December 2011, the regulator said $14.17 bn of investment income was mainly offset by realised and unrealised losses of $12.54 bn.

This compares to losses the previous year of $332 million.

APRA put total revenue for the life insurance sector at $14.81 bn, down from $23.51 bn for the year ending December 2010.

The figures showed insurers suffered a poor September 2011 quarter, in the red by $4.32 bn, which rose again to $8.06 bn in the December 2011 quarter alone.

 Net profit after tax was down by 1.25 % for the December year end from the previous year, standing at $2.61 bn.

Total expenses, including net policy, operating, effective movement in net policy liabilities and changes in policy owner retained profits, were down from $19.34 bn in 2010 to $11.48 bn in December 2011.

Net policy expenses stood at $6,152 million, operating expenses were $6.95 bn, effective movement in net policy liabilities was negative $1.89 bn, change in policy owner retained profits was $59 million and other expenses were $179 million.

This compared with 2010 costs of policy expenses $5.85 bn, operating expenses $6.8 bn, effective movement in net policy liabilities was $6.27 bn, change in policy owner retained profits of $290 million and other expenses $115 million.