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(From Post Magazine)
Byline: Ralph Savage.
Lloyds TSB significantly increased its exposure to the creditor insurance market in 2006, with a 42% rise in gross premium making up for falls in commissions received by the bank.
The insurance arm took GBP180m in gross written premium for its creditor business, up from GBP127m in 2005. The move follows a tailing off in the banking group's income on many lines of business from brokerage, which was expected after last year's promise to increase its underwriting presence.
However, the group posted an increase in profits of GBP34m, or 16%, to GBP243m in 2006, driven largely by increased revenues from creditor and a stable claims book.
While overall claims increased slightly to GBP200m in 2006, the claims ratio fell to 32% from 34% in 2005, which the bank ...