The general insurance businesses of banking group HBOS reported a 20% increase in profits in 2006
Profit before tax rose to £304m, despite a 4% fall in overall premium income to £1,894m.
The banks said it had "solid growth from household insurance in spite of strong price competition".
Premium income from household related insurance increased by 11% to £618m. Sales through the Retail branch network increased by 9% compared to the previous year, whilst internet sales increased by 39%.
Sales of repayment insurance fell by 10% to £948m "primarily as a result of lower unsecured personal lending volumes".
Alan Kirkwood, Finance director, HBOS General Insurance, said: "In 2006 we have seen an excellent year with continued growth in our profits. This growth was supported by all distribution channels, with retail sales remaining strong and internet sales continuing to grow."
