Lloyds banking group GI business falls by 16%

Lloyds Banking Group’s general insurance business has recorded a combined operating ratio of 69% for H1 2013, improving by 11 points since the same period last year.

However, the company’s net written premiums fell by 16% to £401m, from £480 in H1 2012.

General insurance claims reduced by 36% to £148m, down from £233m last year.

Lloyds attributed the £79m reduction in premiums to “run-off of the legacy books and the impact of revising intra group commission arrangements on the home book”.

The fall in claims was primarily due to fewer weather claims in 2013 compared with the same period in 2012, which was the second wettest year on record.

Lloyds also said the improvement in the combined ratio to 69% was also largely down to the reduction in weather-related claims.