Banks operating in the general insurance market don't have much impact in terms of market share but they are among the most profitable players in the industry.According to the latest KPMG General Insurance Survey, which was released yesterday, the Australian operations of the leading general insurers returned to underwriting profit in the 2012/13 financial year.The industry had a year of recovery, with relatively few disaster claims and higher earnings from increases in premium rates.The average combined ratio for the Australian operations of the 18 insurers in the survey fell from 101 per cent in 2011/12 to 90.5 per cent in 2012/13. The combined ratio calculates claims plus underwriting expenses as a percentage of insurance premium income. The lower the combined ratio the more profitable the underwriting business, while a combined ratio of over 100 per cent indicates an underwriting loss.Two big banks' general insurance businesses were included in the survey: Commonwealth Bank's Comminsure, which earned a gross written premium of A$597 million in 2012/13; and Westpac Insurance, which earned $445 million of gross written premium in the year to September 2012.These businesses are dwarfed by Suncorp, whose gross written premium from Australian operations was $7.6 billion in 2012/13; Insurance Australia Group (also $7.6 billion); and QBE ($4.8 billion).However, Comminsure's combined ratio of 81.3 per cent and Westpac's combined ratio of 83.9 per cent are among the lowest in the industry. Only three other insurers have lower ratios.KPMG reported that, overall, the aggregate profit for Australia's general insurers for the 12 months to June was $4.4 billion, compared with $2.7 billion for the previous year.Gross written premiums rose 9.2 per cent, to $31.8 billion, driven by increases in property and motor premiums.