Westpac’s gross written premium (GWP) grew 3% to $259 million in the bank’s first half, but the profit contribution from insurance slumped on natural catastrophe claims.

General insurance catastrophe claims were $89 million, up $66 million on the previous corresponding period due to the Queensland floods and NSW hailstorms.

Westpac says it received 1638 claims due to the Townsville flooding, with the cost estimated at $70 million, or a net $36.5 million after reinsurance.

Some 361 claims have been finalised and $13 million paid to customers.

General insurance income fell to $16 million in the six months to March 31 from $76 million a year earlier, while life insurance income grew slightly to $145 million from $143 million.

The rise in GWP was driven by improved sales through digital channels, the bank says.