Westpac says its general insurance income increased by $43 million in the year to September 30, on strong sales from the bank network.

Gross written premium (GWP) was $218 million, up 10% on the previous year’s $198 million.

The general insurance loss ratio was 45%, down from 76%.

Lenders’ mortgage insurance (LMI) income fell by $2 million, reflecting moves to reduce underwriting risk in the portfolio since 2009.

GWP was $25 million, unchanged from the previous year.

The bank says claims were up, reflecting an increase in the workout of delinquent mortgages.

Claims were highest in WA and southeast Queensland. The LMI business loss ratio improved to 35% from 33%.

Life insurance income fell $3 million for the year as increased claims offset premium income growth of 13%.

Inforce premium grew 14% to $685 million, and sales were up 6% to $183 million.

Lapses were $90 million, up 18% from $76 million the previous year. The life insurance loss ratio was 30%, up from 28%.

Westpac Group CEO Gail Kelly says the bank’s overall result, including insurance, “demonstrates strength, consistency, careful balancing of growth and return and disciplined execution of our strategy”.

“I am particularly pleased that all our operating divisions and brands contributed positively to the result,” she said. “It demonstrates the quality of the performance, with cash and core earnings up across the board.”