Skyrocketing profits for insurers have been branded "obscene" by sections of the health industry, coming just months after health funds secured another government-approved increase in premiums well above inflation.

Health funds made post-tax profits of $1.3 billion in the year to April 1, an annual increase of 18 per cent.

That followed quarterly profit increases of 11.5 per cent and 28.5 per cent, according to figures released by the Australian Prudential Regulation Authority.

Private Healthcare Australia, the peak body for insurers, conceded the numbers showed "good profitability" across the sector.