Direct Line's total income soared by 46% in the first half of the year compared with the same period last year.
Its income increased by £310m to £989m compared with £679m in the first six months of 2001 .
Excluding acquisitions, which added £28m, total income was up by 42% or £282m.
Premium income increased by 47% to £885m after reinsurance.
The number of in-force UK motor insurance policies increased by 360,000 from December last year to 4.38 million in June.
The number of in-force UK home insurance policies increased over the same period by 190,000 to 1.55 million.
Expenses increased by 32% or £48m to £197m. Excluding acquisitions, which added £20m, expenses were up by 19% or £28m.
Net claims after reinsurance increased by 53% or £221m to £639m.
The company said this was mainly the result of higher business volumes.
Gross claims increased to £787m from £585m in the first half of last year.
Direct Line's combined operating ratio, which measures claims and costs as a percentage of premiums, increased to 89.1% in the first half of the year, from 87% last time.
