Westpac Banking Corporation insurance units have delivered a 20% increase in annual cash earnings of $191 million as premium growth offsets higher general insurance claims.

Westpac’s latest profit announcement uses the yardstick of cash earnings in order to account for the cash earnings of St George prior to its December merger.

Insurance cash earnings increased $32 million in the year to September as a 15% increase in premium growth more than offset higher general insurance claims.

Westpac insurance business includes BT and St George life insurance, general insurance and lenders mortgage insurance businesses.

Those units are housed within Westpac’s BT Financial Group Australia, which reported an 8% fall in cash earnings of $493 million due to weaker investment markets.

Within the insurance businesses, life cash earnings increased 5% to $85 million for the year to September as inforce premiums climbed 11%.

Despite 8% growth in gross written premium, general insurance cash earnings slid 7% to $38 million “following the significant storm and fire events that occurred in the first half”.

Lenders mortgage insurance provided most of the gains, surging 84% to $68 million.

Overall Westpac reported an 11% fall in overall net profit of $3.4 billion.