HBOS said insurance profits rose by 11% to £445m in the 12 months ending 31 December 2003.
In total, sales of general insurance products rose by 19% in the UK.
It said sales of household and repayment insurance products increased by 20% and 9% respectively, while sales of motor insurance products were up 69%.
Its esure subsidiary sold almost 800,000 motor and household policies, and HBOS said it was expected to break even in the first half of 2004.
From the end of December 2003, HBOS said it began underwriting its own household insurance products, which were previously underwritten by Royal & SunAlliance.
All household business will be transferred to HBOS during renewals, said the company.
It said it would recognise its profits form underwriting household policies later than was the case as a commission earning introducer.
It said this would have a one-off effect of reducing reported profits in 2004 by an estimated £76m.
