Lloyds TSB General Insurance has reported a 22% increase in profit before tax in its 2005 results.
Lloyds TSB said net operating income improved by £26m as growth in income from home and motor business was partly offset by reduced broking commission payments from loan protection insurance.
The company said this reflected the slowdown in unsecured consumer lending growth during 2005.
At the same time, the bank said claims fell by £17m to £197m and the claims ratio improved to 34%.
It added that the combined ratio for the second consecutive year had fallen to 80.8%.
The company said gross written premiums from new policies sold through direct channels increased by 9%. Home internet sales were up 39% and motor internet sales grew by 12%.
Phil Loney, managing director, Lloyds TSB Insurance, said: “We expect the softening personal insurance market to continue into 2006, and will maintain our focus on ensuring that new business acquired is profitable.
"We will focus on building new business levels for home insurance through the UK retail bank and developing new corporate partnering opportunities."
