Royal Bank of Scotland Insurance's (RBSI) contribution to the group increased by 6% or £25m, to £435m for the half year ended 31 June.
The increase reflected what it described as “good volume growth and expense control in a very competitive market”.
Total income was up 7% or £182m, to £2,676m. Earned premium income rose by 2% to £2,778m. Net of reinsurance, insurance premium income rose by 6% or £153m, to £2,645m, despite “pressure on pricing in the motor market”.
RBSI said UK motor insurance policies in force rose by 6% since June 2004 to 8.6 million. Non-motor policies, including home, rescue and pet insurance, increased to 11.3 million at 30 June 2005.
Net fees and commissions payable increased by 11%, as a result of premium growth in its broker business, the bank said. “Other income rose by 25%, reflecting increased investment income. Expenses increased by 4% to £345m.”
In a statement RBSI added: “Net of reinsurance, claims increased by 8% to £1,896m with underlying claims up 4% to £1,941m. This reflects volume growth across the business and the severe storms experienced in parts of the UK in the first half of the year.
“The UK combined operating ratio, which includes manufacturing costs, improved slightly to 93.1% compared with 93.3% for the full year 2004.”
RBSI concluded: “The integration of the Churchill Group is fully on track and its contribution, net of manufacturing costs, was £103m in the first half – more than the full year profit of £86m Churchill reported in 2002, the year before its acquisition. We expect the integration to be completed in the last quarter of this year.”
