Norwich Union insurance group Aviva unveiled a 37% rise in half-year profits today after seeing confidence return to the long-term savings market.

The improvement to £1.13 billion, which was ahead of market expectations, also benefited from a strong profits performance in general insurance, where Aviva has cut costs by setting up a processing facility in India.

Chief executive Richard Harvey said Aviva - the world's fifth largest insurance group - was now in a "strong and competitive position" following its recent drive on value and cost control.

Aviva's new business sales in long-term savings products were up 7% and the company said Norwich Union's position in the UK market had "improved significantly" because a number of its rivals had closed their funds to new business in recent years.

Wednesday August 04, 2004