In 2011, insurers made an underwriting profit of 11p in every £1 of premium earned and Deloitte says similar levels are expected this year.
Increases in the average cost of household insurance are unlikely to be above inflation in 2013, however.
Deloitte business partner James Rakow says: “2012 looks likely to be the fifth year in a row that the home insurance industry will be profitable and this makes it less likely that we will see above inflation premium increases in 2013.
“Currently the biggest concern for household insurers is the fact that the government and insurance industry have not yet reached agreement on a mechanism for providing affordable flood insurance for high-risk households. If an agreement on flood insurance is not reached, people in high-risk areas may find it much more difficult to find affordable flood cover.”