The 2003 full year results for Lloyds TSB showed a 4% drop in pretax profit for its general insurance activities, down from £753m in 2002 to £720m for 2003.
Lloyds TSB said it made a pretax profit of £219m on its underwriting activities, and £501m from its broking business.
It put an 11% year on year increase in pretax profits on its underwriting activities down to higher income from its home insurance sector, with income up 17%.
Lloyds TSB said claims were £7m higher than for 2002, reaching £236m for the year. It said the claims ratio dropped slightly to 42%, down from 46% in 2002, as portfolio growth exceeded the rise in claims, reflecting more favourable weather conditions.
The bank said commissions from insurance broking decreased by 7%, or £43m, which it put down to lower levels of creditor insurance. It said this was partially offset by higher retrospective commissions.
The group said insurance sales through direct channels continued to grow strongly, with more than one million new policies sold in 2003, a 14% increase from 2002.
Sales through its internet distribution channel almost doubled during the year, said the company.
Lloyds TSB said: “Over the past five years the group has delivered rapid growth in general insurance product sales, largely through the branch network distribution channel, and the number of policies in force has risen from less than five million to over nine million.”
It said the growth in the number of in-force policies was an indicator of the success of its bancassurance strategy.
