Health insurer HBF has revealed one of its strongest years on record as improved investment markets more than match up with the rising levels of claims.

HBF, a mutual which operates on a not-for-profit basis, recorded a $134 million surplus for the year ending June 30, its second highest performance after hitting $216 million. The previous record, in 2006-07, was strong due to global investment markets and included a one-off $60 million inclusion in general reserves following strategic decision to close the HBF Future Health Benefit scheme.