Halifax group profits from general insurance increased by 11% to £328m last year.
The figure, which compares to £295m for 2000, was generated by non-life insurance sold under its own brand names, esure and St Andrews.
Halifax Bank of Scotland (HBOS) banking group said its general insurance operations had broken through the £1bn premium barrier for the first time.
Finance director for general insurance operations Ian Black said the growth came from operations that included Halifax's 1.9m household customers and credit card repayment insurance.
Halifax issued 25m credit cards last year, making it the largest issuer of new cards in the UK.
Black said the biggest challenge over the coming year would be merging business from the Halifax and Bank of Scotland.
The merger would produce benefits and savings across the group totalling £690m.
Insurance would take up a "small part" of that, mainly through income growth rather than cost savings.
