RBSI saw its total income, operating profit and policy growth all rise by 3% consecutively during 2006.
Its insurance premium income rose to £5.67bn from £5.48bn in 2005, while it posted an operating profit of £750m against £728m in 2005.
Overall policy growth was 3% for its European businessess though Spain outperformed the sector, with a policy rise of 14% to 1.34 million customers.
Having implemented price rises in the second half of 2005, its UK core motor book increased by only 1% though the bank said it "focused on more profitable customers" hooked by its direct brands such as Direct Line and Churchill.
Non-motor personal lines also rose by 3%, with "good progress" in its Tesco personal Finance affinity deal. SME business grew by 10% through the intermediary channel.
RBSI admitted that a number of its partnership books were "aging" and renewals had declined. This resulted in partnership policies dropping by 8% in motor and 9% in home.
The discontinuation of these partnerships and a higher loss ratio, led the division to report a combined operating ratio of 94.6% in 2006 compared with 93.4% in 2005.
