January storms and June flooding account for estimated £80m in claims

General insurance profits at HBOS, the company behind Bank of Scotland and Halifax, fell by 34.4% in the first half of 2007.

The company said in a statement: "General Insurance profits fell to £107m (H1 2006 £163m) reflecting the January storms and June flooding, which together gave rise to an estimated claims cost of £80m. Investment profit increased by 69% to £209m (H1 2006 £124m), benefiting from the growth in profits from the in-force book and increased contributions from new business."

Overall group profit before tax was up 13% to £2,997m.

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