Wesfarmers Insurance has tabled a flat earnings period for the first half of fiscal 2010, despite incremental increases in written premiums and a quiet claims period.

Revenue across the insurance division was stagnant at $868 million, with earnings before interest, tax and amortisation falling across underwriting and broking reporting lines.

The earnings in insurance mirrored results at a group level for Wesfarmers, which posted a 0.9% increase in net profit to $879 million.

Underwriting, which includes Lumley Insurance, suffered a 20% slump in earnings, while broking was down 11%.

A 12% rise in commission and other expenses eroded minor gains in gross written premium, up by less than 1%, and net earned premium, up 1.6%.

Wesfarmers Insurance MD Rob Scott described the result as “pleasing”.

“Looking ahead, further benefits are expected from business improvement initiatives and rising interest rates,” he said.

“In the last six months we kicked off a number of growth initiatives and will continue to assess bolt-on acquisitions.

“The commercial market remains competitive and the prospect of severe weather events remains the key risk to earnings.”