HBOS profits before tax leapt 22% in the first half of 2006 despite overall premium income falling 2%, compared to the same period last year.
Profit reached £163m and premium income slipped to £919m, with growth in household sales offset by falls in payment protection.
Overall sales of household insurance increased by 11% on the corresponding 2005 period. Sales via the internet channel were up 28% and third party channels grew 69%.
Michael Warren, Finance Director, HBOS General Insurance, said: “2006 has seen an excellent start to the year for HBOS's General Insurance business particularly in household. Continued focus on retention from existing customers and improved claims experience has contributed to this success.
“Our multi channel approach and strategy to broaden the customer base continues with 87% of new policies not linked to mortgage sales.“
Sales of repayment insurance under the Halifax and third party brands fell by 6% to £490m gross written premiums (GWP), primarily as a result of lower unsecured personal lending, according to HBOS.
Sales of other personal lines insurance such as legal protection and annual travel insurance continue to grow.
