Strong new business growth has underpinned a rise in general insurance earnings for Westpac, which today announced a $7.56 billion full-year group profit.

The bank says general insurance cash earnings gained 44% to $135 million, while gross written premium (GWP) increased 11% to $462 million for the year to September 30.

It says more people are insuring through the BT Financial Group subsidiary, premiums have risen and retention rates have improved.

Fewer catastrophes and improvements in claims management have also lifted the general insurance result.

Lenders’ mortgage insurance (LMI) earnings fell 28% to $23 million on lower volumes, although this was offset by fewer claims. In 2009 Westpac decided to reduce LMI risk and it says the portfolio size has dropped, but LMI GWP grew 4% to $52 million.

Life insurance inforce premium gained 16% and cash earnings from the business were up 13% to $161 million for the year.