Lumley Insurance has helped parent company Wesfarmers achieve an 18% profit increase – a result that analysts say is solid but at the lower end of market expectations.

The group posted a net profit of $569.2 million for the 12 months to June 30, with the insurance division (incorporating the Edward Lumley business) achieving a higher than expected profit of $33.8 million.

Wesfarmers CEO Michael Chaney disagrees with market expectations that profit will slow in the coming year, saying last week he expects profit growth in all major divisions.

He says there will be a full 12 months of earnings from Lumley this financial year. The business did not become part of the group until mid-October last year.