Wesfarmers CEO Richard Goyder has told shareholders the performance of the group’s insurance division will “improve significantly” in the coming year in the absence of a notable claims period.

Speaking at the company’s annual general meeting in Perth last week, Mr Goyder said that since last summer’s catastrophes, trading in the insurance division has been “satisfactory”.

He says that while premiums have hardened in response to rising reinsurance costs, “the ability to pass through higher costs has varied by insurance class dependent on the competitive environment”.

But despite recording an underwriting loss for the 2010/11 financial year, Mr Goyder told shareholders that beneath the impact of the claims events the insurance business delivered underlying improvements in underwriting performance, achieved good traction with new growth initiatives such as Coles Insurance and recorded strong growth in insurance premium funding.

“The early positive response to our recently launched personal insurance lines has continued during the first few months of the year, with strong growth – albeit from a low base.”

He says the group’s broking operations “continue to do well and have benefitted from the hardening premium environment”.