Lloyds TSB reported pretax profits up 3% to £82m for its general insurance business in the first half of 2004.
It said premium income went up 6% to £276m, helped by higher income from home insurance. Home insurance income increased by 10% over the first half of the year, boosted by improved levels of business retention, said the bank.
Insurance broking commission income decreased by £45m, as a result of a £24m fall in income from creditor insurance and a £20m reduction in other commissions, largely reflecting lower retrospective commissions, Lloyds TSB said.
But internet and telephone-based sales continued to grow, with a 9% increase in gross written premiums from new policies sold through direct channels in the first half of 2004, it said.
Gross written premiums for new policies sold via the internet increased by 44%.
Claims were £13m higher at £121m, compared to the first half of 2003, reflecting higher values of underwritten business and higher weather related claims.
The overall claims ratio remained low at 42% but was slightly higher than in the first half of last year (40%).
Lloyds TSB General Insurance managing director Phil Loney said: “The business is showing growth in pre-tax profits as we expand our market share in home insurance and drive forward our direct business.
“Our focus on pricing for risk, while improving customer service and retention, as well as tight cost management, is increasingly driving our bottom line performance.”
