Wesfarmers’ insurance division is tracking to plan this financial year and the outlook is positive provided there are no significant catastrophes, according to MD Richard Goyder.

Speaking at the company’s AGM in Perth last week, Mr Goyder made no comment on speculation that Lumley Insurance will be sold to Zurich and the division broken up with the sale of the distribution side of the business – local broker OAMPS, major New Zealand broker Crombie Lockwood and some UK broking assets.

“In underwriting, we continue to achieve good traction with Coles Insurance personal lines,” Mr Goyder told the meeting.

“Our broking business is anticipated to grow through targeted recruitment, bolt-on acquisitions and productivity improvements. However, margin improvement in the short term will be constrained by system upgrades.”

The insurance business reported earnings of $205 million for the year to June 30, up from $5 million the previous year.