Lloyds TSB Insurance posted an 8% drop in pretax profits to £355m in the first half of 2003, as it suffered a downturn in creditor insurance income.
Lloyds TSB Insurance posted an 8% drop in pre-tax profits to £355m in the first half of 2003, as it suffered a downturn in creditor insurance income.
Despite 20% growth in home insurance premium income to £198m in the first half of 2003, the fall in general insurance profits was caused largely by a 16% drop in income from commissions on creditor policies to £190m.
Lloyds TSB blamed the fall in creditor insurance broking income on the slowdown in growth in personal loans.
Overall premium income from underwriting increased by 11% to £261m largely as a result of the higher home insurance income. Commissions from insurance broking, however, decreased by 11% to £289m.
Despite the fall in profitability, Lloyds TSB claimed it is the largest distributor of personal lines general insurance in the UK. It said: "With over 9 million policies in force as at 30 June 2003, an increase of 7% from 30 June 2002, Lloyds TSB is the largest distributor of personal lines general insurance in the UK."
Sales from direct channels grew strongly with 62% of new home insurance policies and 84% of new motor insurance policies being sold through direct channels in the first half of 2003.
The banking giant also revealed it generated an additional 40,000 policies through its presence on the AA's and Hill House Hammond's insurance panels.
Claims were £1m higher at £108m than in the first half of 2002.
