The devastating summer floods, which caused the insurance industry as a whole to lose around £3 billion has been blamed for a bank's general insurance losses.

Halifax Bank of Scotland (HBOS) has just released figures showing that its profits fell by 24 per cent last year to £232 million compared to £304 million in 2006.

The bank reports that overall, general insurance sales, as measured by gross written premiums, fell by one per cent.

Meanwhile, both motor and household sales were up, 12 per cent and five per cent respectively.

In a statement, HBOS added: "Growing our share of the household insurance market is an important strategic priority allowing us to leverage our market leading mortgage position."

HBOS is predicting that the current credit crunch crisis, which has already led to them writing off some significant losses in the sub-prime market, will continue well into 2008.

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